From the Sector

Sustainable solutions provider Perstorp has turned its ambitious sustainability targets for 2030 into actionable roadmaps on the corporate level as well as for each of its production plants, outlining hands-on activities to lower greenhouse gas emissions, reduce waste, save fresh water and enable sustainable transformation throughout the value chain.

Over the last year, Perstorp has presented ambitious sustainability targets for greenhouse gas emissions (Scope 1, 2 and 3), as well as for water and waste, to be reached by 2030. The company has now supplemented those targets with roadmaps outlining the steps and actions needed to fulfil them and support customers in reducing their carbon footprint as well as lead Perstorp toward its long-term ambition of becoming Finite Material Neutral.

The largest greenhouse gas emissions are found in Scope 3, which includes raw materials and end-of-life treatment of Perstorp’s products. The Scope 3 roadmap includes the steps necessary to drive the transition of the product portfolio from fossil-based to more sustainable, lower carbon footprint alternatives. This, in turn, will help enable Perstorp’s customers to achieve their own sustainable transition. One key project in this roadmap is Project Air, an initiative aiming to replace all the fossil methanol that Perstorp uses in Europe with methanol produced from residue streams such as carbon capture and utilization (CCU) and renewable sources like biogas. This alone is expected to reduce carbon dioxide emissions by 500,000 tons per year.

The corporate Scope 1 & 2 targets (direct greenhouse gas emissions from Perstorp´s production plants and purchased energy), as well as the targets for water and waste, have been broken down into local targets and roadmaps, firmly anchored in the specific prerequisites for each production plant.

Initiatives on reducing energy consumption and shifting to energy from non-fossil or recovered sources can, for example, be found in the local roadmaps, while the steps to reach those targets are tailored specifically to each location. Among the planned local activities are also initiatives to replace fresh water used in the production with purified wastewater and to find different ways to reuse and recycle waste from production.

Jedes Unternehmen hat individuelle Bedürfnisse, wenn es darum geht, Wissen zu den Themen Digitalisierung und Ressourceneffizienz aufzubauen. Mit einem themenspezifischen Zugang zum umfangreichen Informationsangebot des VDI Zentrums Ressourceneffizienz (VDI ZRE) unterstützt der neue Online-Baukasten „Ressourceneffizienz 4.0“ bei der zielgerichteten Suche – je nach digitalem Reifegrad des Unternehmens.

Zielgerichteter Zugang zu Informationen
Je nach individueller Fragestellung und digitalem Reifegrad erhalten Unternehmen einen zielgerichteten Zugang zu Online-Tools wie Ressourcenchecks, zu Publikationen oder Weiterbildungsangeboten. Während eine umfangreiche Sammlung zu Technologien im Entwicklungsstadium einen Blick in die Zukunft gibt, zeigen zahlreiche Gute-Praxis-Beispiele, wie Digitalisierungsprojekte bereits zu mehr Ressourceneffizienz in Unternehmen geführt haben.

Der Online-Baukasten ist in die Bausteine Wissensaufbau, Strategie, Analyse und Entwicklung unterteilt. Entsprechend dem digitalen Reifegrad, d.h. abhängig davon, ob sich ein Unternehmen z.B. noch in der Erkundungsphase befindet oder schon fortgeschritten ist, werden verschiedene Arbeitsmittel vorgeschlagen.

Das vom Bundesumweltministerium beauftragte Online-Tool wird regelmäßig aktualisiert und erweitert. Es richtet sich vorrangig an kleine und mittlere Unternehmen aus dem verarbeitenden Gewerbe.

• Sales increase by 4.7% to €283.7 million in Q1 2023
• Adjusted EBITDA improves by 9.0% to €40.1 million
• Growth based in particular on strong demand from the semiconductor industry

SGL Carbon generated Group sales of €283.7 million in Q1 2023 (Q1 2022: €270.9 million). This corresponds to an increase of €12.8 million or 4.7% compared to the same period of the previous year. Increased demand for specialty graphite components for the semiconductor industry from the Graphite Solutions business unit contributed in particular to the pleasing increase in sales. But also the Process Technology and Composite Solutions business units continued their positive business development.

Accordingly, adjusted EBITDA (EBITDApre) improved by 9.0% to €40.1 million in the reporting period (Q1 2022: €36.8 million).

Sales development
In the first three months of fiscal year 2023, the business unit Graphite Solutions was the main driver of SGL Carbon's growth with an increase in sales of €21.3 million or 17.8%. This is due in particular to the reallocation of production capacities from the solar industry market segment to the semiconductor industry. The Process Technology (+€6.6 million) and Composite Solutions (+€4.0 million) business units also contributed to the increase in sales.

The Carbon Fibers (CF) business unit recorded a decline in sales of €24.0 million in the reporting period. The decline is mainly due to the scheduled expiry of the attractive supply contract for the BMW i3 in the middle of last year. Freed-up production capacities were compensated by orders from the wind industry in the 2nd half of 2022. But the necessary construction of wind turbines in Europe is currently stalling. Low building permits and high manufacturing costs are temporarily hampering the construction and expansion of wind parks and therefore the necessary increase in renewable energy.

Earnings development
In line with the sales development combined with higher capacity utilization and positive product mix effects, adjusted EBITDA (EBITDApre) improved from €36.8 million to €40.1 million in Q1 2023, representing a quarter-on-quarter increase of 9.0%.

Taking into account depreciation and amortization of €14.3 million (Q1 2022: €14.1 million) as well as one-off effects and non-recurring items of minus €0.1 million, EBIT in the reporting period amounted to €25.7 million (Q1 2022: €31.2 million). It should be noted that Q1 of the previous year was positively impacted by one-off effects and and non-recurring items amounting to €8.5 million. Accordingly, net profit for the period of €15.3 million was lower than in the same quarter of the previous year (€21.5 million).

Debt, equity and capitel expenditure
Net financial debt increased slightly to €174.2 million as of March 31, 2023 (Dec. 31, 2022: €170.8 million). The leverage ratio remains unchanged at 1.0. Due to the positive consolidated net income, the equity ratio increased again slightly compared to the end of fiscal 2022 to 39.5% (Dec. 31, 2022: 38.5%).

Looking at the capital expenditure in Q1 2023, it amounted to €19.0 million, which is higher than the average values of the previous quarters. "At the beginning of 2023, we had already announced the expansion of our investment activities to expand production capacities in the Graphite Solutions business unit. In previous years, our capital expenditure was in line with depreciation and amortization. In addition to these approximately €60 million, we will invest further €20 to €30 million in 2023, which will be financed by advance payments in the context of long-term supply contracts from our customers in the semiconductor industry. Our semiconductor customers secure future production capacities for graphite components, which are needed for their own growth. In return, SGL Carbon's long-term supply contracts will enable future profitable growth," said Dr. Torsten Derr, CEO of SGL Carbon.

Outlook
In line with the business performance in the first three months of 2023, the company confirms the sales and earnings guidance issued on March 23, 2023.

For the financial year 2023, Group sales are expected to be at the prior-year level and  EBITDApre between €160 - 180 million. Taking into account depreciation and amortization, EBITpre is forecast to be between €100 - 120 million. Furthermore, free cash flow at the end of fiscal 2023 is expected to be at the prior-year level and return on capital employed (ROCE) between 10% and 12%.

Baldwin Technology Company Inc. will introduce its range of technologies at Graphics Canada, which will take place at the Toronto International Centre, May 11-13.
 
Solutions to be discussed at Graphics Canada will include corona surface treatment systems, automated cylinder cleaning systems, LED-UV curing, roto-spray systems, and technologies for color management and defect detection.
 
Baldwin’s AMS Spectral UV-brand LED UV technology offers a high curing intensities available for printing. Benefits of LED UV include a 65% reduction in energy consumption, reduced costs related to parts and service, increased productivity and greater effeciency stemming from the lack of waiting for lamps to warm up or cool down
 
In addition, Baldwin is a leading provider of corona surface treatment systems that are used to achieve better adhesion of process liquids like inks and coatings to substrates as part of printing and industrial production processes
 
Rounding out its technology, Baldwin’s cleaning solutions automatically and safely clean cylinders, blankets and plates used in various production processes, and tackle cleaning tasks like hickey-picking, end-of-run plate cleaning, blanket cleaning and film cylinder cleaning.
 
Common to all the technologies is that they increase productivity, reduce waste, improve working conditions and provide full control of producing flawless products. With easy automation and compatible software, Baldwin’s technologies are seamlessly integrated with one another.

Since 1 April 2023 sales and service of Mayer & Cie. circular knitting machines in Bangladesh have been under new management. A new dynamic team “Mayer Bangladesh” has been formed. Mayer & Cie.’s longstanding Indian representative Batliboi has joined business activities in Bangladesh since the beginning of the month, supported by the team of Brady Services and by Almani Biz.

In Batliboi, Mayer & Cie. has set up a business partner of many decades standing as its representative in Bangladesh. For around 40 years Mumbai-based Batliboi has overseen sales and service of Mayer & Cie. circular knitting machines in India. Abhay Sidham heads Batliboi’s Textile and Machinery Group. He and his team have many years of experience in strategic marketing, and a focus on sustainability and processing recycled raw materials is part of Batliboi’s expertise.

These competences are of relevance in the Bangladesh market because “we face strong competition from Asian manufacturers here,” as Wolfgang Müller, Mayer & Cie.’s sales director, explains. The premium market was growing smaller, and the trend was toward specialities – value-added fabrics, spacer fabrics and athleisure with a high proportion of elastic. Mayer & Cie. sees in these requirements significant potential for its machines – and in Batliboi a partner able in view of its experience to put them to optimal use.

One building block in the set-up of Mayer & Cie. representatives is unchanged. Brady Services will continue with Batliboi to contribute its close ties with the local market. A significant number of existing companies will continue to be looked after by Brady Services.

The new member in Mayer Bangladesh team is Dhaka-based Almani Biz. A lubricants specialist for circular knitting machines Almani Biz has a wide network with Bangladesh knitting industry.

Mayer & Cie. feels well positioned by this new set-up. “We,” Wolfgang Müller says, “are of the opinion that the market for textile machinery in Bangladesh will continue to grow and we are confident that by strengthening our sales, service and marketing team we will be able to make good use of this opportunity.”

Customers in Bangladesh have placed large orders in the past. The latest, placed in January, was for several dozen machines to be delivered this autumn. Further orders from Apex and BEXIMCO (Bangladesh Export Import Company) are also scheduled for delivery in the second half of 2023.

While reorganising the set-up of its representatives in Bangladesh Batliboi has also taken over as Mayer & Cie.’s representative in Nepal, where the company had previously had no local representative. There is a demand for machines for interlock, 8-lock and single jersey, but sales are still in single figures.

• Revenues: 123.7 million euros (stable)*
• EBITDA before non-recurring items: 19.7 million euros (-12%)*
• Net income: 7.3 million euros (-21%)
• Free cash flow before non-recurring items: 9.2 million euros
• Revised 2023 outlook due to wait-and-see attitude of customers

Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the unaudited consolidated financial statements for the first quarter of 2023. Comparisons between 2023 and 2022 are based on 2022 exchange rates unless otherwise stated (“like-for-like”). As the impact of the acquisition of TextileGenesis on the financial statements for 2023 is not material, like-for-like changes exclude only the variations in exchange rates.

See the attached document for more details about the financial statements.

The 14th in-store asia will be held in Mumbai from 1 June to 3 June 2023. The trade exhibition for retail resources and investment in store design, VM and in-store marketing gathers decision-makers from more than 7,500 retail companies, consultants, service providers, and manufacturers, bringing together over 100 exhibitors.

Since 2018, in-store asia has been a member of the international trade fair family of EuroShop in Düsseldorf. It assembles all leading retail solutions providers from India and other countries under one roof. Here decision-makers from retail, including branded product producers, retail consultants as well as providers of services and solutions for retail, store designers, architects and VM experts come together.

The 3-day event includes not only the Expo area but also a wide range of side events comprising a Convention with over 30 speakers, the presentation of the coveted VM & RD Retail Design Awards as well as the VM Challenge, a live shop window challenge for top-notch visual merchandisers that is unique for India. Furthermore, the Retail Technology Pavilion will present new tools, for instance for retail management and customer tracking as well as solutions revolving around AI & virtual reality, NFTs, smart checkout all the way down to store management, retail security and payment. Celebrating a premiere here will be the Start-up Hub, which will provide emerging, innovative companies with a stage to present themselves to the industry.

The Indian retail industry has changed drastically; being one of the fastest growing retail markets it has proven a key driver for the Indian economy. The Indian retail sector is forecast to continue posting enormous growth rates due to such factors as growing urbanisation, rising household incomes, better connected rural consumers and rising consumer spending.

• Revenue grows to EUR 623.1 mn – fiber sales recovered over the course of the quarter
• EBITDA and net result for the period down compared with the first quarter of 2022
• Cost reduction program of more than EUR 70 mn being implemented according to plan
• Production of TENCEL™ brand modal fibers successfully launched in China
• Lenzing confirms guidance for 2023

The business performance of the Lenzing Group during the first quarter of 2023 largely reflected market trends. However, after the market environment had deteriorated significantly in the third and fourth quarters of the previous year, signs of recovery emerged during the first quarter in terms of demand as well as raw material and energy costs. Textile fibers recorded moderate but steadily improving demand. Business with fibers for nonwovens and with dissolving wood pulp performed better than expected. Raw material and energy costs were still at an elevated albeit decreasing level.

Outlook
The war in Ukraine and the more restrictive monetary policy pursued by many central banks in order to combat inflation are expected to continue to influence global economic activity. The IMF warns that risks remain elevated overall and forecasts growth of 2.8 and 3 percent for 2023 and 2024 respectively. The currency environment is expected to remain volatile in the regions relevant to Lenzing.

This market environment continues to weigh on the consumer climate and on sentiment in the industries relevant to Lenzing. However, the outlook has brightened somewhat recently.

Demand picked up tangibly after the Chinese New Year. As a consequence, capacity utilization improved and stocks were further reduced both at viscose producers and at downstream stages of the value chain.

In the trend-setting market for cotton, signs are emerging of a further buildup of stocks in the current 2022/23 crop season. Initial forecasts for 2023/24 anticipate a more balanced relationship between supply and demand.

However, despite signs of recovery in both demand and raw material and energy costs, earnings visibility remains limited overall.

Lenzing is fully on track with the implementation of the reorganization and cost reduction program. These and other measures are aimed at positioning Lenzing in the best possible way for the expected market recovery.

Structurally, Lenzing continues to anticipate growth in demand for environmentally responsible fibers for the textile and clothing industry as well as for the hygiene and medical sectors. As a consequence, Lenzing is very well positioned with its “Better Growth” strategy and plans to continue driving growth with specialty fibers as well as its sustainability goals, including the transformation from a linear to a circular economy model.

The successful implementation of the key projects in Thailand and Brazil as well as the investment projects in China and Indonesia will further strengthen Lenzing’s positioning in this respect.

Taking into account the aforementioned factors and assuming a further market recovery in the current financial year, the Lenzing Group continues to expect EBITDA in a range between EUR 320 mn and EUR 420 mn for 2023.

At ITMA 2023 in Milan from June 8-14 this year, Monforts is organising two free-to-attend seminars and discussions on the potential of green hydrogen as a new energy source for textile finishing, drying and related processes.

Monforts is currently leading a consortium of industrial partners and universities in the three-year WasserSTOFF project, launched in November 2022, that is exploring all aspects of this exciting and fast-rising new industrial energy option.
The target of the government-funded project is to establish to what extent hydrogen can be used in the future as an alternative heating source for textile finishing processes. This will first involve tests on laboratory equipment together with associated partners and the results will then be transferred to a stenter frame at the Monforts Advanced Technology Center (ATC).

To be considered “green”, hydrogen must be produced using a zero-carbon process that is powered by renewable energy sources such as wind or solar. Currently, the cleanest method of hydrogen production is electrolysis, using an electrically-powered electrolyzer to separate water molecules into hydrogen and oxygen. The purity of the hydrogen is also important, and impurities must be removed via a separation process.

“Despite all its advantages, there are obstacles to overcome on the way to widespread, economically-feasible green hydrogen use,” explains Monforts Textile Technologies Engineer Jonas Beisel. “Until there are widely available, reliable and economical sources of this clean power, the cost of producing it will remain prohibitive. The infrastructure is not yet there, and hydrogen also has a tendency to make steel brittle and subject to fracture, which is something that requires further investigation in both its transportation and use in industrial processing.
“Green energy’s potential as a clean fuel source is tremendous, but there is much we need to explore when considering its use in the textile finishing processes carried out globally on our industry-leading Montex stenter dryers and other machines.”

At its Advanced Technology Center (ATC) in Mönchengladbach, Monforts will be carrying out intensive tests and trials to assess the reliability of both processes and final products when different natural gas and hydrogen mixtures – up to 100% green hydrogen – are employed. The results will be closely analysed by the consortium partners because there are many parameters that at this stage remain unknown.

The aim, Beisel adds, is to both reduce CO₂ emissions and – following the rising prices and industry turbulence experienced by manufacturers over the past year or so – to further reduce a dependency on natural gas.

The three-year WasserSTOFF project is sponsored by Germany’s Federal Ministry for Economic Affairs and Climate Action, and with Monforts at the helm brings together industrial partners Pleva and NTB Nova Textil, with academic input from the Hochschule Niederrhein and the Technical University of Freiberg.

Ab sofort präsentiert das Fashion- und Lifestyle-Unternehmen Breuninger Düsseldorf die neu gestaltete Luxus- & Beautyfläche im Erdgeschoss. Mit 30 Prozent Zuwachs lädt die neue Etage nun auf insgesamt 1.800 Quadratmetern Verkaufsfläche zum Shoppen der aktuellen Looks für die Frühjahr-/Sommer-Saison 2023 ein. Unter anderem können Saint Laurent und Celine ihre Kollektionen nun auf der doppelten Fläche zeigen und auch Givenchy, Valentino, Rimowa, MCM, Dolce & Gabbana sowie Chloé stellen ihre aktuellen Trends in neuem Ambiente vor. Innovative Konzepte wie der Etropía Pop-Up von Etro sind ebenfalls zu entdecken. Als Highlight ist die spanische Luxusmarke LOEWE als Neuzugang dabei.

Verändert hat sich ebenso die Beauty-Fläche im Erdgeschoss. Besucher:innen können sich jetzt auf einer Fläche von insgesamt 1.200 Quadratmetern, also 20 Prozent mehr, rund um das Thema Schönheit beraten lassen. Neue Shops gibt es auch hier: Tom Ford, La Prairie, Sensai, Diptyque, Byredo, Aqua di Parma, MFK, Creed, Amouage, Rituals sowie Le Labo präsentieren sich im modernen Design.

„Die Investitionen in die Luxus- & Beautyflächen in unserem Flagship-Store in Düsseldorf sind gleichzeitig auch ein Invest und ein Bekenntnis zur Zukunft des stationären Handels. Kern unseres Geschäftsmodells ist die umfassende Omnichannel-Ausrichtung und der Anspruch, unsere Position im Premium- und Luxussegment kontinuierlich auszubauen. Mit einem kuratierten Angebot an Premium- und Luxusmarken und mithilfe inspirierender Einkaufserlebnisse in unseren Häusern werden wir auch künftig unsere Kundinnen und Kunden nachhaltig für Breuninger begeistern“, sagt Breuninger CEO Holger Blecker.