From the Sector

Artisan craft, experience and high eco-technological specialization: the great tradition of fabrics for shirts which styles the future.

Search for quality, the ability to interpret elegance and a product inspired by tradition, though always trendy: these are the distinctive traits which define the vocation of Canclini 1925, a point of reference worldwide for shirt fabric manufacturing. This expertise is implemented through dynamic creativity and 100% Made in Italy artisan  craft. These are the foundations which make the history and capability of Canclini 1925 unique, as standard bearer for everlasting style.

All this results from an authentic family tradition which, for three generations, has been the driving force of the company, shaping each collection. This passion is at the service of tireless search in terms of style and technology which underlies the whole Canclini 1925 innovative approach. The goal is to offer, through its fabrics, an inimitable experience, “creating wellbeing” and emotion through touch alone, respecting the environment and humans.

Founded in 1925, Canclini has always been a company able to combine extraordinary creativity and product care, established as a silk factory in the Como region. This tradition was renewed in the 1960s with the shift to the cotton sector, aiming more and more at customer service, developing a partnership and trust relation. Working with Canclini 1925 means reaching into the tradition of a family which has always been passionate about its work, dynamic, creative and focused on continuous innovation.

These are distinctive and qualifying elements in the Canclini 1925 approach. An approach which, in line with the research and development pathway on which the company has always invested substantial resources, also involves considerable attention the topic of environmental and social accountability. This commitment is confirmed by numerous and prestigious certifications in the company portfolio, starting from the careful selection of raw materials to its social commitment. More specifically, Canclini 1925 has been awarded the GOTS (Global Organic Textile Standard), SUPIMA COTTON (the Pima “Gossypium Barbadense” cotton, classified as Extra-long Staple) certifications, following the Standard 100 by OECO-TEX®, BCI (Better Cotton Initiative) and GRS (Global Recycle Standard). A comprehensive range of tools which, combined with its in-house know-how and expertise capital, enhances the portfolio of Canclini 1925 branded innovations.

This accountability approach also encompasses the social area with the association “Un sorriso in più” (“One extra smile”). Founded and managed by the company, it is a non-profit organisation engaged in projects which include assistance in nursing homes to elderly persons without family ties, as well as in the support to children living difficult and disadvantaged family situations, focusing its activity on “human life quality”. The uniqueness generated by this meeting between tradition and innovation is the driving force behind corporate research, as well as the truly distinctive reason for its style and technology development. The high-performance looms and technologies used make the company strong and flexible enough for contemporary market requirements. The trademark passion of the Canclini family completes the picture within which the company operates, true to an approach which is at the same time artisan and high-tech, a point of reference in Italy and worldwide.

Thanks to its substantial manufacturing capacity, Canclini today is present on all of the most influential shirt markets worldwide, and – with its new Blue 1925 line - also in the denim world. In this way the company has succeeded in positioning itself among major players in textile manufacturing, authentically Italian because of its farsighted  business vision, care for details and production flexibility. It is the approach which – over the years - has allowed the group to take over important enterprises in the sector, for example Hausmann-Moos and Profilo Tessile, Maglificio Mida and Grandi & Rubinelli.
According to Simone Canclini, CEO of Canclini 1925: “What characterises the Canclini 1925 spirit is first and foremost genuine passion driven by our inspiring principles: quality, style and service. These elements have allowed us to become and remain a point of reference worldwide, to rediscover the everyday – basic and exciting – emotion of choosing a special shirt”.

Heimtextil will launch the new 2020/2021 trend season with the general theme “WHERE I BELONG”. For the official Heimtextil Trend Preview, Stijlinstituut Amsterdam director Anne Marie Commandeur  introduced the new design themes. The presentation in the run-up to Heimtextil (7-10 January 2020) took place at the Textile Museum’s Textile Lab in Tilburg, the Netherlands on 11 September 2019 and was streamed worldwide.

This season, Stijlinstituut Amsterdam is responsible for the Trend Book content and Trend Space implementation at the upcoming international trade fair for home and contract textiles. Alongside Stijlinstituut Amsterdam, London-based studio FranklinTill and Danish agency SPOTT trends & business contributed to the 20/21 global forecast for perspective-related interior design. Together with the Heimtextil management team, these Trend Council participants gave insights into future styles during a workshop.

At the annual international Trend Council workshop, identity was an ever-present topic: part of a broader discussion on gender and cultural diversity, on tolerance and curiosity. Today, the self-identification process seems more complex than ever. Identities are now formed through experiences that take place simultaneously, on different levels. Locally, nationally, globally, both online and offline. Identity therefore can consist of many different layers. In fact, individuals can all have multilayered identities.

Heimtextil Trends 20/21 Overview:

MAXIMUM GLAM

Pleasure seekers revel in layering theatrical influences and glamorous showtime aesthetics, forging a fantastic marriage between the crafted and digitally rendered. Textiles show a ‘more is more’ attitude through a mash-up of glam, gradients and spectrums, fake fur, pile and fringe, jacquard weaves and fantastic prints. The flashy, kitsch colour range becomes brutally glam thanks to electric sheen, synthetic shimmer, digital glitch and artful blur. A riot of clashes and rebellion.

PURE SPIRITUAL

Idealists seek perfection and purity, restoring equilibrium by connecting with the uber-natural. They embrace technology for good while shifting between realism and mysticism in pursuit of a personal haven. To address a renewed bond with nature, organic matter, raw materials and pure textiles are selected which show nature’s traces, organic structures and irregularities. Shades are created from the earth and cultured by man. An elemental and pure range reflects the source of their existence.

ACTIVE URBAN

Urban dwellers confront the challenges of the fast paced, shape-shifting, man-made environment by searching for utilitarian, adaptable solutions. They value tech performance while making smart use of  available and renewable resources. Functionality is prioritised, while looking cool and working well remains key. Interior/sportswear hybrid textiles show smooth surfaces and a fun mash-up of graphic textures. The palette shows uniform blue, asphalt grey and caterpillar yellow.

HERITAGE LUX

Preservers of historic legacies treasure sensuousness alongside the uncanny, enlightenment together with darkness, for a whole new immersive experience. This new narrative translates to a love for luxury and splendour, decoration and embellishment. Finding beauty in history and nature through ornamental patterning and alluring surface enhancement. Reflecting on ancient history results in a palette featuring enigmatic blood red, sapphire and a lustrous mother-of-pearl.

MULTI-LOCAL

Hyper-locals go global, celebrating inclusivity over appropriation, honouring traditional craftsmanship and adjusting the world’s gaze to embrace exchange, creative integrity and diverse identities. Indigenous style meets global influences. This is a celebration of crafted and decorative pattern, from tribal and folkloric to geometric and abstract. Textile colours become part of a wider cultural narrative, linked to local community, cultural heritage and private identity.

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• With a turnover of EUR 513 million, the CHT Group achieved a 12% increase in sales
• The result was impaired by high raw material costs and currency effects
• Investments remain high - approximately 13 million EUR invested in production sites and new technologies worldwide
• The acquisition in silicone specialties is bearing fruit despite a shortage of raw materials on the market
• 2019 - moderately optimistic business expectations in a difficult market environment

The situation on the world market deteriorated further in 2018, not least due to the intensification of the trade conflict between the USA and China. However, the CHT Group was again able to close the financial year with an increase in turnover. With consolidated sales of 513 million EUR, the previous year's success in the Group was exceeded by 12%.

Textile innovator Devan Chemicals will launch two new technologies at the upcoming Techtextil show in Frankfurt (May 14-17). Bio-flam, a bio-based flame retardant product and Odour Breakdown, a wash durable, non-biocidal odour control solution.
As tradition goes, every two years Devan participates in Techtextil, the leading international trade fair for technical textiles and nonwovens. In the quest for sustainability and transparency every company faces these days, the new Devan technologies offer answers to product developers and portfolio designers.

Bio-flam
Some facts & figures: There are at least 5000 fire incidents each day in the EU. Yearly, about 70 000 people are hospitalised with fire-related injuries. Fires cause pollution. So sustainable fire performance of products is an economic, environmental and human necessity. Take the example of mattresses: tests indicate that when on fire, non-FR treated products give less than 5 minutes escape time. Unfortunately, that is not enough time for the fire brigade to arrive. Needless to say that to increase escape time, to reduce the risk and to save lives, products need to be flame retardant. The challenge is to obtain flame retardant properties in the most natural way, to find the right balance between safety for the people and for the planet.

Companies can do this by replacing raw materials from a non-renewable source, by bio-based FR treatments, which are made from renewable sources and do not contain halogens or heavy metals, as described in the norm EN 16785 1:2015. Bio-based FR treatments, like Bio-flam, are made from renewable, vegetable sources and enable the FR treated products to be biodegradable. The active components are 100% halogen- and heavy metal-free. A welcome innovation for the bedding industry, as the European Commission requires mattresses to be recyclable by 2030 in order to reduce landfill.

Bio-flam P307 is the first introduction in the new Devan BIO-FR family, and is biodegradable and is developed to be used on 100% cotton or cotton/viscose mixtures, in order to create an ecological concept, safe for people and planet, whatever might happen. Bio-flam P 307 is developed for mattress ticking to pass EN 597 1&2. The Devan researchers are developing other bio-based products for other market segments and for other fire standards.

A wide range of new technologies will be demonstrated by Vandewiele at the ITMA 2019 textile machinery show in Barcelona from June 20-26, including the latest RCE2+ digital carpet weaving machine.

All Vandewiele technologies are now being equipped for machine-to-machine interaction and learning, as part of the company’s comprehensive TEXconnect programme.

Meeting new industry needs
As a leader in complete carpet manufacturing systems – including BCF extrusion lines, heat setting systems and carpet weaving and tufting machines – Vandewiele has rapidly responded to the evolving needs of the textile industry for smaller and customised production runs, the most challenging of designs, and faster and more sustainable manufacturing.

The company’s sensors, software programmes and servers have become increasingly sophisticated as part of the TEXconnect program, and the real-time data from different machines – across connected manufacturing sites and across different countries and even continents – can be collected and shared. Digital models of both machines and production processes can be created and analysed for the optimisation of production settings, to vastly improve scheduling and planning and also make considerable savings in raw materials and energy consumption.

Virtual and remote control now allows for the Big Data analysis that is propelling the industry forward and will pave the way for AI applications. For carpet manufacturers, all of this is leading to the creation of truly Smart Factories.

RCE2 carpet weaving
The new RCE2+ Rug and Carpet Expert weaving machine is a truly digital workhorse, with all yarns continuously controlled and measured and the difficult bobbin changes of the past completely eliminated. This is as a result of Vandewiele’s latest Fast Creel, with the feed and tension of each pile yarn controlled by individual servomotors.

The pile yarns are now fed directly into the machine without having to pass pile-stop motions, to both increase efficiency and eliminate any waste yarns, while achieving previously unreachable industrial speeds.

The filling enters the machine smoothly via the latest IRO X3 winders, heavy duty filling brakes with multi lamellas, an active yarn recuperator and a high speed weft mixer, where again, all tensions are set electronically. Vandewiele’s servo-driven heddle frames (Smart Frames) are meanwhile already well proven in the industry.

TEXconnect further provides readily-available data on all yarn consumption, tension and threading, and then will supply the predictive maintenance that is paving the way to self-learning carpet weaving machines.

All of this would be unnecessary, if it didn’t result in allowing manufacturers to make the highest quality carpets at the most economic prices ever, with savings on the highest-bulk pile yarns from the Vandewiele extrusion lines, reduced waste yarns in the creel and industrial production speeds that have never before been attained.

• Challenging market environment due to low prices for standard viscose, less favorable exchange rates and higher raw material and energy prices
• Very positive development of specialty fiber business with revenue share exceeding 45 percent
• Dividend proposal of EUR 3.00/share plus a special dividend of EUR 2.00/share
• Results for 2019 expected at about the level of 2018 despite a significantly more demanding market environment

The Lenzing Group’s business developed well in the 2018 financial year. A significantly more challenging market environment led to a decline in revenue as well as earnings compared with the record results of the previous year. This was primarily caused by lower selling prices for standard viscose, exchange rate effects as well as higher raw material and energy costs.

Group revenue declined by 3.7 percent compared with the previous year to EUR 2.18 bn. The predicted challenging market environment for standard viscose, plus less favorable exchange rates and a slight decline in sales volume were the key contributing factors. EBITDA (earnings before interest, tax, depreciation and amortization) was down by 24 percent to EUR 382 million due to price increases for key raw materials and higher energy and personnel costs. The EBITDA margin dropped from 22.2 percent in the 2017 financial year to 17.6 percent in the reporting year. EBIT (earnings before interest and tax) fell by 36 percent to EUR 237.6 mn, leading to a lower EBIT margin of 10.9 percent (2017: 16.4 percent). Net profit for the year after one-off effects dropped by 47.4 percent from EUR 281.7 mn in the previous year to EUR 148.2 mn. Earnings per share equaled EUR 5.61 (2017: EUR 10.47).

The Management Board and the Supervisory Board will propose a stable dividend of EUR 3.00 per share plus a special dividend of EUR 2.00 per share at the upcoming Annual General Meeting. In total, the paid dividend will amount to EUR 5.00 per share, corresponding to a dividend payment to shareholders of roughly EUR 133 mn.

New products for photopolymer and laser sinter printing methods from BASF 3D Printing Solutions GmbH (B3DPS) are on show from November 13 to 16 at Stand F20 in Hall 3.1 at this year’s formnext fair in Frankfurt. The BASF subsidiary is also announcing several new partnerships for the development and distribution of groundbreaking 3D printing solutions and products.

B3DPS has entered into a strategic partnership with the US company Origin, San Francisco, California for the further development of photopolymer printing processes. “Within the framework of an open business model, we are combining BASF’s material know-how with Origin’s expertise in printer software programming and the manufacture of the corresponding hardware,” explained Volker Hammes, Managing Director BASF 3D Printing Solutions GmbH. The collaboration has already shown the first signs of success. Origin has developed a new printing method where BASF’s new Ultracur3D photopolymers can be processed particularly well. The technology offers an optimal combination of a good surface finish and high mechanical stability, while also allowing for high material throughput.

B3DPS is working together with Photocentric, a manufacturer of 3D printers and their corresponding software and materials, on the development of new photopolymers and large-format photopolymer printers for mass production of functional components. Based in Peterborough, UK and Phoenix, USA, Photocentric has developed and optimized the use of LCD screens as image generators for its own printing systems. The two partners plan to offer the industry 3D printing solutions that replace parts of traditional manufacturing processes such as injection molding for small series, as well as enabling the production of large components.

The objective of the cooperation with Xunshi Technology, a Chinese printer manufacturer headquartered in Shaoxing, and operates in USA under the name Sprintray, will be opening new fields of application in 3D printing for the Ultracur3D product range of B3DPS.

Ultracur3D specialties for photopolymer printing processes
B3DPS has grouped well-established and new photopolymers designed for the respective 3D printing processes under the brand name Ultracur3D. BASF has developed unique raw materials for its new products that enable special part properties.
“Our Ultracur3D portfolio enables us to offer customers various UV-curable materials for 3D printing that provide far better mechanical properties and higher long-term stability than most available materials,” explained András Marton, Senior Business Development Manager at B3DPS. He added: “These materials have been developed for functional components that are subject to high stress.”

Expansion of distribution network for filaments
Innofil3D, a subsidiary of B3DPS, is entering into a partnership with Jet-Mate Technology, based in Tjanjin, China, for the distribution of plastic filaments in China. In parallel, a distribution agreement has been concluded with M. Holland in Northbrook, USA for the distribution of filaments in USA. “Since the USA is the largest market for filaments, we intend to strengthen our activities there,” said Jeroen Wiggers, Business Director 3DP Solutions for Additive Extrusion at B3DPS, adding: “Asia is another important market for us. We will be developing further distribution channels there and putting our Ultrafuse filaments on the Asian market in 2019.”

BASF’s portfolio of filaments for 3D printing are comprised of two categories; the well-established Innofil3D filaments based on generic polymers for conventional applications and polymer-based Ultrafuse filaments for advanced formulations used in demanding technical applications. One of the broadest filament selections on the market, this portfolio covers customer requirements ranging from prototype to industrial-scale production.

SLS: new 3D printing material with fire protection classification
New flame-resistant Ultrasint Polyamide PA6 Black FR meets UL94 V2 fire protection standards and is a new material class for use in selective laser sintering (SLS) processes, distinguished by high stiffness and thermal stability. In cooperation with one of the global leaders of public transportation vehicles, B3DPS has developed new components that meet vehicle fire protection requirements. “Together with our partner, we are currently producing prototypes, spare parts, and small series components, and are working to further improve flame resistance to meet additional certification specifications,” explained Hammes.
BASF introduced Ultrasint Grey PA6 LM X085 at AMUG this spring and now is followed by another product on show at formnext. Ultrasint PA6 Black LM X085 is based on polyamide 6, and can be processed at 175-185 degrees Celsius therefore making it suitable for most current SLS machines.

B3DPS adds polypropylene to its 3D printing portfolio
Through the acquisition of Advanc3D Materials GmbH in July 2018, B3DPS has expanded its range with numerous materials for use on laser sinter machines, including polyamide Adsint PA12, Adsint PA11, Adsint PA11CF and Adsint TPU flex 90.
Ultrasint PP is a special highlight. This polypropylene-based product exhibits outstanding mechanical properties and is frequently used in standard industrial production as it offers a good balance between price and performance. Ultrasint PP is distinguished by excellent plasticity, low moisture uptake, and resistance to liquids and gases. Prototypes and small batches can now be produced from the same material as used for traditional serial production. Post treatments such as thermoforming, sealing, and dyeing can be performed after printing.

Candiani launches at Kingpins its new eco-smart denim range in partnership with ROICA™ from Asahi Kasei.

Both companies can claim their separate leading roles in textile innovation. Candiani, ‘the Greenest Mill in The Blue World’, is always at the cutting edge of new developments, and ROICA™ with its various premium stretch functions. Now they join forces through a unique synergy and an exclusive, custom made premium stretch sustainable ROICA™ yarn developed by Asahi Kasei especially for Candiani.

ReLAST is a range of market fresh responsible denim products, designed by Candiani that tick every smart box: from new ways in colouration, to better, more sustainable raw materials, new finishing and fade-tech that minimises water waste, and now with a key responsible stretch ingredient in a specially produced GRS certified ROICA™ yarn that perfectly completes this range making better, more sustainable, sharp fashions for customers looking to live and wear better with better values.

New Colouration values in the K-Seal range come from indigo applied with a water saving Indigo Juice® system. Or in the KN-Cotton range from cotton scraps recycled and dyed with Archroma earth colours. Both are sized with the Kitotex® Vegetal size derived from plants and natural renewables.
KN-Blue and Regen ranges use Sulfur dye and conventional Indigo dye using N-Denim tech and water saving Indigo Juice® respectively. The Regen range also uses Tencel and Refbra materials from Lenzing to add softness and a luxe touch to denims of the future.

All ranges in the ReLAST collection deploy the customized ROICA™ advanced sustainable stretch yarns.

With the ReLAST collection from Candiani and ROICA™ from Asahi Kasei rewrite the rules for responsible denim stretch manufacture, designing fashion forward denims that are now guaranteed completely 100% sustainable.

The evidence for excellence is underpinned by a qualified list of certifications that include GOTS (Global Organic Textile Standard) and GRS(Global Recycled Standard), Recycled Cotton Certification as well as registered affiliated processing methods for saving water (Kitotex® and Indigo Juice®). Branded raw materials with confirmed responsible status include Tencel and Refibra from Lenzing, Q-Nova recycled polyamide and of course the newly developed ROICA™ advanced fit, premium stretch yarn with full GRS certification.

Dedication to reaching the same goal pays off with the ReLast collection, a collaborative partnership with Candiani and ROICA™.

A new important partnership marks the path of Itema towards a greener future for the whole denim production chain. Prosperity Textile, one of the main denim producers worldwide, has chosen for its new facility one of the most interesting and sustainable-oriented Itema technologies, iSAVER™ equipped on the Itema R95002denim. Prosperity Textiles is, in fact, one of the early adopters of this new technology chosen for the new plant that the world-famous indigo fabrics producer will open in Vietnam, and that will be exclusively equipped with the latest Itema weaving machine model, demonstrating once again its green, future-oriented approach.

Thanks to its partnership with Itema, Prosperity Textiles makes again a step forward in terms of sustainable innovation, as one of the first denim producers able to successfully turn - even the weaving production - green. A partnership that is planned to be showcased in some of the most important textiles exhibitions worldwide focusing on Asian and denim markets. A path that starts with KingpinsShow, Amsterdam (October 24-25) where the Chinese denim producer will put into the spotlight this brand-new solution aimed at further increasing the eco-driven approach of the company; an important appointment is also in the Itema calendar: the ITMA Asia + CITME 2018 exhibition, Shanghai (October 15-19) where the Italian company showcased the important green step-forward in denim weaving processes and the full range of its innovations.

iSAVER™: the ideal green tool for denim weaving
This new technology, developed by ItemaLab™, the Itema Advanced Innovation Department, isable to completely eliminate the left-hand weft waste, allowing to insert the weft yarns in the fabric without the need of additional yarns. iSAVER™ significantly reduces raw material waste, leading to tangible benefits in terms of machine’s efficiency, cost reduction and energy saving.

Just consider that the weaver will gain a minimum saving of € 2.000 per year per machine, and our planet will gain even more. In fact, for the first time in the weaving industry, a sustainable approach when choosing the weaving equipment is now possible. Thanks to iSAVER™, 1.000 Kg of cotton per machine per year – the 3% of the total raw materials - will be saved, thus avoiding the waste of 20 million liters of water, equivalent to 400.000 showers.

Numbers are clear: the introduction of iSAVER™ clearly sets a new benchmark in terms of sustainability within denim fabric production. Furthermore, the iSAVER™ is one of the key features of the Itema R95002denim, the rapier weaving machine born and designed to weave denim guaranteeing to weavers superior textile quality, outstanding user-friendliness and tangible energy and raw materials saving.

A joint eco-driven path
Itema, understanding very well the importance of saving resources and energy to drive the textile production in the direction of a more conscious manufacturing, focused its attention to develop breakthrough weaving solutions and in 2018 introduced to the market the iSAVER™, a revolutionary device dedicated specifically to denim fabrics able to eliminate the waste selvedge on the left-hand side of the fabric.

This is one of the reasons-why Prosperity Textiles has chosen to adopt this extraordinary technology for its new facility. Today Prosperity Textiles is one of the main denim producers worldwide, counting 1,300 employees and 20 offices worldwide. Moreover, a second state-of-theart denim mill will be inaugurated in Vietnam by the end of 2018.
What makes Prosperity able to stand out on a global scale, is not simply its products high quality but the ability to conciliate flawless denim fabric production with a sustainability-oriented mindset that permeates every stage of their textile supply chain.

Prosperity, indeed, adopted innovative green manufacturing concepts through all stages of the company’s operations, from product development, raw materials procurement and processing, to natural resources and energy utilization including waste management. Prosperity’s denim production is based on the employment of best quality yarns available on the market, while still targeting the most sustainable sources, from BCI to organic, recycled cotton, and from Tencel™ Lyocell to Sustans™, in 2017, more than 20 million yards fabric sales from Prosperity are with sustainable fibers inside.
The introduction of eco-friendly dyeing and finishing practices allows the company to create beautiful indigo shades and performance denims, with less water and energy consumption compared to the traditional systems. Last year, Prosperity produced 20% more fabrics than 2016, yet the water and electricity use and greenhouse gas emission was down by 11.5%, 7.9% and 5.4% respectively.

In this continuous process of improvement and contribution to a greener industry and planet, plays a central role the recent renewal of the historic partnership and strategic alliance with Itema – the leading manufacturer of cutting-edge weaving solutions – which represents the natural evolution of a constant process of research for partners able to support Prosperity Textiles’ growth as a sustainable company.
Up to now, all innovations and efforts done in this regard addressed the traditionally more polluting steps of the denim production. In fact, if the development of green technologies is nowadays spread in many fabric processing stages, such as finishing and dyeing, weaving was not yet capable to provide sustainable solutions to weavers.

• Decline in revenue due to volatile standard viscose prices and currencies
• Prices for key raw materials still high
• New production line in Heiligenkreuz in start-up phase
• Backward integration into dissolving wood pulp to be strengthened via joint venture in Brazil

Lenzing – The Lenzing Group generated solid results in a challenging market environment in the first half of 2018. The decline in revenue and earnings compared with the first half of the previous year, which was the best half-year in the company’s history, was based on a mix of volatile prices for standard viscose and price increases for key raw materials, coupled with currency effects. The Lenzing Group’s strategic orientation with a focus on specialty fibers had a positive impact in this environment and is increasingly bearing fruit. The corporate strategy sCore TEN is being implemented with great discipline in order to expand the company’s offering of specialty fibers and even more extensively support customers and business partners.

Revenue declined by 6.4 percent compared with the first half of the previous year to EUR 1,075.4 mn. This decrease is primarily attributable to less favorable currency exchange rates. EBITDA (earnings before interest, tax, depreciation and amortization) decreased by 28.1 percent to EUR 194.8 mn, especially due to price increases for key raw materials and higher energy prices. The EBITDA margin fell from 23.6 percent in the first half of 2017 to 18.1 percent in the first half of 2018. EBIT (earnings before interest and tax) declined by 37 percent to EUR 128.7 mn, leading to a lower EBIT margin of 12 percent (H1 2017: 17.8 percent). The net profit for the period dropped by 39.3 percent from EUR 150.3 mn in the previous year to EUR 91.3 mn. Earnings per share equaled EUR 3.44 (H1 2017: EUR 5.55).

“So far, the financial year 2018 proved to be as challenging as expected, and market headwinds were clearly noticeable. In this market environment, we are satisfied with the solid results we report. We are proud that with our corporate strategy sCore TEN and the focus on growth with specialty fibers we show big steps in the right direction. The recently announced joint venture with Duratex is another important step in executing this corporate strategy,” says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “We will continue to implement our strategy with great discipline and are convinced that this will steadily improve the long-term profitability of Lenzing,” Doboczky adds.

Largest dissolving wood pulp line worldwide

In June, the Lenzing Group and Duratex, the largest producer of industrialized wood panels of the southern hemisphere, announced that they had agreed on the terms and conditions to form a joint venture to investigate building the largest dissolving wood pulp plant (single line concept) in the state of Minas Gerais, (Brazil). This decision supports the self-supply with dissolving wood pulp and the growth in specialty fibers, defined in Lenzing’s sCore TEN strategy. The joint venture will investigate the construction of a 450,000 t dissolving wood pulp plant, which is expected to become the largest and most competitive single line dissolving wood pulp plant in the world. The final investment decision to build the dissolving wood pulp plant is subject to the outcome of the basic engineering studies and the approval by the respective supervisory boards.

Even stronger focus on sustainable products

As a pioneer in sustainable fiber solutions, the Lenzing Group is committed to higher standards in the textile and nonwoven sectors. More than EUR 100 mn will be invested in sustainable manufacturing technologies and production facilities by 2022 in order to realize this vision. In line with the Group’s specialty strategy, another two milestones were set in the first half of 2018: Lenzing announced an investment of up to EUR 30 mn in another pilot line for the production of TENCEL™ Luxe filaments at the Lenzing site. In addition, the company also introduced the environmentally friendly process for the production of LENZING™ ECOVERO™ branded viscose fibers at its Chinese site. Both decisions contribute to better meeting the strong demand for environmentally compatible products.

Expansion of capacities

CAPEX (investments in intangible assets and property, plant and equipment) rose by 60.8 percent year-on-year to EUR 117.2 mn in the first half of 2018. This is primarily attributable to the capacity expansions in Heiligenkreuz (Austria) and Mobile, Alabama (USA) and the expansion of the existing dissolving wood pulp plant in Lenzing. The company is pressing ahead with these projects as well as with planning work on the construction of the next state-of-the-art lyocell production facility in Prachinburi (Thailand).

New brand identity

With the new positioning of its master brand and its product brands, the Lenzing Group started a new phase of branding and brand communication in the first half of 2018. Lenzing decided to carry out a new brand strategy in order to sharpen its company and product profile as a sustainable innovation leader for customers and partners along the value chain as well as for consumers. The most important pillar of this new brand strategy is a brand architecture with a focus on fewer brands and a strong message to consumers. With the TENCEL™ brand as an umbrella brand for all specialty products in the textile segment and the VEOCEL™ brand as the umbrella brand for all specialty fibers in the nonwoven segment as well as the new master brand, which was presented in March, Lenzing showcases its strengths in a targeted manner.

Outlook

The International Monetary Fund expects a further acceleration in global economic growth to 3.9 percent for 2018. However, growing protectionist tendencies in the political arena represent a source of uncertainty. Export-oriented companies in the Eurozone are faced with additional challenges from the currency environment.

Developments on the fiber markets should remain positive, but with continuing volatility. The rising demand for cotton should support prices despite the increase in production. Polyester fiber prices have stabilized after the increase in previous years.

The wood-based cellulosic fiber segment, which is relevant for Lenzing, should see further strong demand. After years of moderate capacity expansion in the viscose sector, significant additional volumes will enter the market in 2018 and 2019. As a result, standard viscose prices will remain under pressure. The Lenzing Group is very well positioned in this market environment with its corporate strategy sCore TEN and will continue its consistent focus on growth with specialty fibers.

The Lenzing Group still sees challenging market conditions for the second half of 2018. In addition to the price pressure on standard viscose, the prices of some key raw materials such as caustic soda are still at a very high level and exchange rates continue to be volatile. Our specialty fibers are expected to continue their very positive development. In this context, the Lenzing Group is satisfied with the earnings development to date, but underlines its estimate that the results for the year 2018 will be lower than the outstanding results in the last two years.