From the Sector

Ascend Performance Materials has purchased a majority stake in California-based Circular Polymers, a recycler of post-consumer, high-performance polymers including polyamide 6 and 66, polypropylene and polyester (PET). The deal provides Ascend with a consistent supply of high-quality PCR materials for its ReDefyne™ sustainable polyamides, launched at K 2022.

Circular Polymers, which as part of the deal is renamed Circular Polymers by Ascend, reclaims and processes post-consumer carpet via a unique technology and has redirected approximately 85 million pounds of waste from landfills into new goods since 2018.

“We are focused on helping our customers reach their sustainability goals and Circular Polymers by Ascend provides materials that offer strong performance with a considerably smaller environmental footprint, compared to other technologies like pyrolysis,” said Phil McDivitt, president and CEO of Ascend. “Since we launched ReDefyne, the demand for our circular products has been significant across all segments of our business, including automotive, consumer, electronics and high-performance fibers and textiles.”

Ascend has a sustainability strategy based on three pillars: empowering people, innovating solutions and operating without compromise. Ascend has committed to reducing its greenhouse gas emissions by 80% by 2030 and recently announced two new efforts to reduce the carbon footprint of its products.

Dr. Harald Weber will become the new managing director of the VDMA Textile Machinery Association on 1 January 2023. The 44-year-old industrial engineer succeeds Thomas Waldmann, who has held the position since 1991 and will retire at the end of the year.

After completing his doctorate at the Technical University of Darmstadt and working as a lecturer at the University of Applied Sciences Mittelhessen (THM), Dr. Weber joined the VDMA in 2011. Since then, he has been responsible for the topics of technology and innovation in the Plastics and Rubber Machinery Association.

Dr. Janpeter Horn, Chairman of the VDMA Textile Machinery Association and Managing Director of August Herzog Maschinenfabrik, commented on the change of personnel: "From his previous work in the plastics industry, Dr. Weber has profound knowledge and experience in topics that are also gaining in importance in textile machinery manufacturing. Examples include recycling and the circular economy, as well as digitalisation and especially the communication standard OPC UA."

Dr. Horn added: "We combine our warm welcome to Dr. Weber with a big thank you to Thomas Waldmann. 30 years as managing director at the Textile Machinery Association also stand for constantly changing framework conditions. Mr. Waldmann has always had his finger on the pulse of the industry and, together with his team, has represented the special interests of the member companies: From technology policy to challenges of market access to the leading trade fair ITMA and the European association CEMATEX. ITMA 2007 in Munich was certainly a highlight. The executive board of the association wishes Mr. Waldmann all the best for the new phase of his life that is now beginning."

Die MEWA Textil-Service AG & Co. Management OHG hat sich der Genossenschaft CIBUTEX als Mitglied angeschlossen. MEWA ein Vorreiter in Sachen Nachhaltigkeit in der Textilservice-Branche.

Verantwortung und Umwelt sind zwei der Mewa-Grundwerte, die sie mit der Mitgliedschaft bei CIBUTEX und dem Recycling ihrer B2B-Alttextilien weiter in die Tat umsetzen möchten. „Unser Ziel ist es, Alttextilien im Stoffkreislauf zu halten – ein geeignetes und skalierbares Recyclingverfahren zu identifizieren, was auch mit Blick auf den Energieaufwand sinnvoll ist, ist eine echte Herausforderung“, sagt Nicole Kiefer, Trendscout Future Textile bei Mewa.

„Wir freuen uns sehr, Mewa als ein neues Mitglied unserer Genossenschaft begrüßen zu dürfen“, sagt Ralf Hellmann, CIBUTEX-Ansprechpartner der D-A-CH-Region. „Gemeinsam mit MEWA werden wir uns mit der Erarbeitung zukunftsfähiger Recyclinglösungen für Berufsbekleidung beschäftigen.“

Hosted outside of Copenhagen for the first time in its 13-year history, on 3 November, Global Fashion Summit assembled over 250 stakeholders representing manufacturers, garment workers, retailers, brands, suppliers, NGOs, policy, and innovators in Singapore and online to spur industry action. The Summit was presented by Global Fashion Agenda (GFA), the non-profit organisation that is accelerating the transition to a net positive fashion industry.
 
The latest edition of the Summit was centred around the theme ‘Alliances for a New Era’, building on dialogues from the June edition in Copenhagen and gathering leaders from across the entire value chain to elevate diverse voices and foster alliances within the fashion industry and beyond, to drive sustainable impact.
 
The Summit’s first international edition facilitated more conversations with manufacturer and supply chain voices to discuss crucial challenges and opportunities around working collaboratively with brands on equal terms. The programme featured bold panels, case studies, masterclasses and leadership roundtables reflecting on topics including ‘Data Scarcity: A Crisis of Measurement?’, ‘Disruption for Better Wage Systems’, ’Community and Circularity’, ‘Connecting the EU Textiles Strategy with the Value Chain’ and ‘Our Energy Transformation Moment’.
 
Attendees heard from over 50 speakers including H.E. Sandra Jensen Landi, Ambassador of Denmark to Singapore & Ambassador-Designate of Denmark to Brunei; H.E. Iwona Piórko, Ambassador of the European Union to Singapore; Anne-Laure Descours, Chief Sourcing Officer, PUMA; Baptiste Le Gal, Chief Revenue Officer APAC, Vestiaire Collective; Christian James Smith, Head of Sustainability Stakeholder Engagement, Zalando; Ninh Trinh, Director of Responsible Sourcing & Sustainability, Target; Roger Lee, CEO, TAL Apparel; Wilson Teo, President, Singapore Fashion Council; Edwin Keh, Chief Executive Officer, The Hong Kong Research Institute of Textiles and Apparel, Ashila Dandeniya, Founder, StandUp Lanka; and more.

Key takeaways and highlights from the event include:

• Global Fashion Agenda announced a new alliance with BBC Storyworks Commercial Productions to launch a film series on BBC.com, which is currently in the early stages of development. The new series will present human-centric stories focusing on both social and environmental sustainability in the fashion industry. It will be released to a wide audience in 2023.
• Federica Marchionni outlined the crucial need for accurate and robust data to substantiate sustainability claims and credentials but acknowledged that the focus on finding ‘perfect’ data cannot be allowed to stifle progress. Global Fashion Agenda will build upon Summit discussions to reflect on how the industry can accurately measure and communicate sustainability performance and illuminate the data credibility challenges.
• The session ‘Establishing circular fashion systems in Cambodia & Vietnam’ outlined the first steps taken by the Global Circular Fashion Forum to establish circular fashion systems in Vietnam and Cambodia with regional stakeholders, government, brand and manufacturer representation.
• Throughout the Summit, the Innovation Forum connected fashion companies with sustainable solution providers. Exhibitors included Better Work , Circular Fashion Partnership, Compreli, Kno Global, Planatones by Noyon Lanka, Redress Design Award and The ID Factory.
• Through conversations such as ‘Disruption for Better Wage Systems’ and ‘Empowering the Worker Majority’, there was a resounding message for people to consider the real people in the value chain. Ensuring dignified livelihoods for these workers should have the same sense of urgency as emissions reductions. 

• Sales of CHF 366.8 million in the third quarter, CHF 987.4 million after nine months
• Order intake of CHF 226.4 million in the third quarter, CHF 1 095.8 million after nine months
• Order backlog of around CHF 2 000 million as of September 30, 2022
• Precautionary measures taken against potential energy crisis in Europe
• Financing of a Professorship for Artificial Intelligence
• Rieter site sales process on schedule
• Outlook 2022

Rieter recorded a significant increase in sales in the third quarter of 2022, reaching a level of CHF 366.8 million (2021: CHF 257.3 million). The measures introduced to increase sales and profitability in the second half of 2022 are taking effect and will continue to be implemented in a systematic manner. These include a close cooperation with key suppliers, the development of alternative solutions to eliminate material shortages, the enforcement of price increases, and the improvement of the margin quality of the order backlog.

The order intake of CHF 226.4 million in the third quarter of 2022 reflects the expected normalization of demand for new equipment compared to the record year of 2021, which was characterized by catch-up effects and the regional shift in demand. In addition, the well-known uncertainties and risks and the continuing extremely long delivery times at key manufacturers had a dampening effect on demand. Due to the slowdown in capacity utilization in the spinning mills, demand for consumables, wear & tear and spare parts also declined in the third quarter of 2022. Major orders continued to be recorded from Turkey, Uzbekistan, and China.

Rieter has a high order backlog of around CHF 2 000 million as of September 30, 2022 (September 30, 2021: CHF 1 562 million), which will guarantee capacity utilization in all three business groups until well into 2023 or rather 2024. The cancellation rate in the reporting period was around 5% of the order backlog.

Outlook 2022
Rieter anticipates weakened demand for new systems in the coming months. The demand for consumables, wear & tear and spare parts will depend on the capacity utilization of spinning mills in the months ahead.

For the full year 2022, Rieter expects sales of around CHF 1 400 million. The realization of sales revenue from the order backlog continues to be associated with risks in relation to the well-known uncertainties.

Despite significantly higher sales compared to the prior-year period, Rieter expects EBIT and net result for 2022 to be below the previous year’s level. This is due to the considerable increases in the cost of materials and logistics, additional costs for compensation of material shortages as well as expenses in connection with the acquisition in the years 2021/2022.

Piattaforma Sistema Formativo Moda Ente del Terzo Settore renews its commitment in the field of responsible, eco-friendly fashion with a new ad hoc initiative for Fashion Graduate Italia: FASHION SCHOOLS FOR DESIGN - DRIVEN SUSTAINABLE INNOVATION. The project has been set up in a partnership and with the support of C.L.A.S.S. (Creativity, Lifestyle And Sustainable Synergy).

The project “Fashion Schools for Design - Driven Sustainable Innovation” is presented at the eighth edition of the event organised by Piattaforma Sistema Formativo Moda, staged from 3 to 5 November at BASE Milano.

Embracing the theme of this edition of Fashion Graduate Italia, “Sustainable Innovation”, Piattaforma Moda has invited students from fashion schools, academies and associated institutes to participate in a training course regarding the planning and creation of an outfit in compliance with a responsible fashion approach: starting with the design, including the choice of sustainable materials supplied by some of the hub’s partner companies, and also involving a look at the communication strategy for the project.
To create their looks, the selected students followed two training courses organised by C.L.A.S.S.: “Introduction to next-generation Fashion” and “Introduction to smart ingredients”. These courses covered the values of next-generation fashion (integrating sustainability with design and innovation) and the characteristics of innovative and sustainable materials to produce the outfits.
 
The development process of the 11 final looks was followed in person by creative director Olivia Spinelli - Coordination and Creative Direction at IED Moda Milano and member of the Artistic Committee of FGI 2022 - and by tutor Camilla Carrara - founder and zero-waste designer of ZEROBARRACENTO -, the project coordinator of C.L.A.S.S.

The partners of C.L.A.S.S. that contributed by supplying their materials are: Berto, Brunello, Iluna Group, Re.VerSo™ by A. Stelloni Collection by Mapel and Tessitura Grisotto;  IED - European Institute of Design and ZEROBARRACENTO also gave support in the implementation of the initiative.

• Positive business development in all four business units
• Sales increases by 14.8% to €853.9 million
• Adjusted EBITDA improves by 25.4% to €136.1 million
• Successful refinancing of the 2018 convertible bonds

After €270.9 million in Q1 2022 and €278.9 million in Q2, SGL Carbon increased its consolidated sales to €304.1 million in Q3 2022. After nine months, this corresponds to a significant sales growth of 14.8% to a total of €853.9 million (9M 2021: €743.5 million). The positive business development is also reflected in the company's adjusted EBITDA, which improved by 25.4% year-on-year to €136.1 million (9M 2021: €108.5 million). All four business units contributed to the operating success.

Outlook
Due to the positive business development, the management increased the forecast for the full year on 6 September 2022. For the financial year 2022, Group sales of approx. €1.2 billion (previously: approx. €1.1 billion) and adjusted EBITDA of €170 to 190 million (previously: €130 to 150 million) are expected.

Consequently, an adjusted EBIT of €110 to 130 million (previously: €70 to 90 million) is forecasted. The expectations for return on capital employed (ROCE) of originally 7% to 9% are raised to 10% to 12% in line with the development of earnings. The estimate for free cash flow (significantly below the previous year's level of €111.5 million) remains unchanged.

• Focus on the guiding principle of "textile intelligence" and sustainability

Long before sustainability became a trend in the textile industry, Schoeller Textil AG, which has been innovating technical fabrics and smart textile finishing technologies for more than 150 years, made it its mission to develop textile innovations in harmony with nature. Now the company is undergoing an extensive rebranding, whilst unveiling its strong brand foundation in the process. The result embodies the newly defined guiding principle of “Textile Intelligence” - the development and successful implementation of innovative textiles and intelligent textile technologies.

Innovations in the textile industry must meet requirements on several levels – offering both new and optimized solutions to sociological, ecological, and economic challenges of our time. Creating this holistic added value is firmly rooted in the Schoeller brand origin and is still the top priority in textile product development today. The brand essence has thus remained the same, but it has been embodied anew.

“At the beginning of the rebranding process, it was clear to us we had to root ourselves in (Swiss) tradition in order to fully realize Schoeller’s entire brand potential and successfully explore new, digital paths,” said Antonio Gatti Balsarri, Schoeller chief commercial officer.

“The goal of the rebranding is to communicate our traditional brand values in a completely new brand presence. The result was a sharpened brand profile, a clear brand strategy and tonality, as well as a clean, modern corporate design. We will specifically address our sustainability commitment through the expansion of digital touchpoints, their cross-media use, and an increased online presence. Simplified, straightforward, sustainable - in accordance with our greatest source of inspiration: nature.”

Transparency and Sustainability
Paramount to Schoeller’s corporate identity is the full disclosure of brand principles and transparency around all business divisions. A simplified logo design was established by reducing logo elements and colors for a modern look and feel that can be produced in a much more resource-efficient manner. Schoeller’s new brand mantra of “Textile Intelligence” speaks to its company mission of more than 150 years.

Schoeller has been a bluesign system partner from the very beginning and uses the Higg Facility Environmental Module (FEM) to assess sustainable performance. In addition to environmentally-friendly manufacturing processes and careful material selection, the highest quality and sustainability standards in production also mean guaranteeing fair working conditions. Schoeller follows a Code of Conduct that guarantees transparent production chains, environmental protection, and fair working conditions.

“Zero Textile Waste” becomes a targeted brand strategy. While the production of textiles and textile technologies is continuously being optimized to preserve resources, the manufacturing processes are often costly and complex. To this end, Schoeller offers new approaches to efforts around Zero Waste in the industry. Its new online shop, “Schoeller re-Fabric” sells textile remnants from production directly to designers and smaller productions to increase its overall production volume efficiency and avoid textile waste.

To further advance the system, the Global Organic Textile Standard (GOTS) is significantly raising the requirements for GOTS-certified gins, to ensure transparent and traceable processing for organic textiles from field to finished product:

1. GOTS is introducing a compulsory farm-gin registry for all farms and farm groups whose certified raw material enters the GOTS system, including information on farm yields. The registry will be implemented progressively, starting in India.
2. Raw cotton is not allowed to travel more than 500 km from the farm to the certified gin. The shorter trade chain protects vulnerable points and optimises the process for buyers.  
3. Increase of unannounced audits of gins where there is a high perception of risk.

These new requirements are added to the numerous checks and balances which are already performed throughout every processing stage. Seed cotton entering the GOTS supply chain is tested for the presence of genetically modified organisms according to the applicable ISO protocol. GOTS-approved Certification Bodies (CBs) include further testing (such as pesticide residue) and are fully authorised to reject material that does not meet GOTS requirements. Additionally, before certification bodies issue a Transaction Certificate (TC), GOTS requires that a thorough assessment takes place, including a plausibility check in the form of volume reconciliation.

To strengthen integrity and traceability, GOTS also stipulates that the Farm TC number appears on the first GOTS TC at the ginning plant, which is the first step for cotton in the GOTS supply chain. The TC must state the origin for raw material, including region, state, and province. This effectively traces material back to the field and adds another layer of accountability to GOTS-certified fibre. It also supports all buyers in their purchasing decisions.

GOTS is not only improving its own system but also coordinating efforts with other key players to support the integrity of organic textiles. As GOTS provides certification of first processing stages to Textile Exchange's Organic Content Standard (OCS), GOTS and TE discussed new requirements for OCS while they were being developed. GOTS supports these requirements as they provide a dual protection shield for materials entering the GOTS or OCS supply chains, at the same time maintaining necessary data privacy. The new requirements will help increase traceability and transparency throughout the organic textile sector which are among the main objectives of GOTS. There are no changes necessary to the requirements of GOTS regarding any of the new OCS rules.

Rieter is donating CHF 100 000 to support relief efforts for victims in Pakistan following the devastating floods of the 2022 monsoon season. Aid will focus on rebuilding schools and helping local healthcare clinics to protect those who are most vulnerable.

The disastrous floods have displaced nearly eight million people, killing more than 1 500 people – including hundreds of children –, and has put millions of lives at risk of health hazards, according to the United Nations.

The money will be donated in equal shares to two local non-government organizations, Citizens Foundation and ZMT clinics. Citizens Foundation was founded in 1995 with the mission to provide education to children who are less privileged. The Foundation is now helping to rebuild the schools destroyed by the floods. ZMT clinics aim to support the development of a comprehensive primary health care system in Pakistan. They are now setting up clinics to provide medical aid to flood victims.

Rieter has selected these organizations together with its partners in Pakistan. Both aid organizations were chosen based on their ability to provide fast and effective relief where it is needed most. Pakistan is an important textile hub, with textiles making up 60% of the country’s exports. Rieter has been present in Pakistan since 1969.