From the Sector

The Oerlikon Barmag Huitong Engineering joint venture, part of the Oerlikon Manmade Fibers segment, recently commissioned a polycondensation system which feeds a polyester industrial yarn system. The future operator will be industrial yarn manufacturer Jiangsu Solead New Material Group Co. Ltd., which is placing its trust in the Oerlikon Manmade Fibers ‘From Melt to Yarn’ total solution philosophy.

This successfully concludes the first phase of this major project. Oerlikon Barmag Huitong Engineering installed the polycondensation system, which has a capacity of 600 tons a day, at Jiangsu Solead New Material Group Co. Ltd. in the Chinese Jiangsu Province. This will be connected to an Oerlikon Barmag industrial yarn spinning system with a 350-ton-a-day capacity. The new systems will be deployed to produce predominantly high-tenacity (HT) yarns for use in agricultural, infrastructure, transport, security and outdoor applications. These systems can be used to manufacture yarns with up to 3 x 6,600 dtex of high yarn quality with simultaneously high production efficiency. Furthermore, low-shrinkage yarns for coating textiles and so-called LDI yarns (high-tenacity, low-denier industrial yarns) for industrial sewing yarns, among other things, are also manufactured.

• Investment of approx. USD 1.3 bn in 500,000 t dissolving wood pulp plant
• Key milestone to structurally strengthen cost leadership position
• Significant step towards carbon neutrality

The Lenzing Group and Duratex announced that they will build a 500,000 t dissolving wood pulp plant in the State of Minas Gerais, near Sao Paulo (Brazil). The start-up is planned for the first half of 2022. In the joint venture, Lenzing holds a 51 percent, Duratex a 49 percent stake. The expected industrial CAPEX will be approx. USD 1.3 bn. The project is financed through long-term debt. The corresponding financing contracts are expected to be concluded at the end of the first quarter of 2020.

Key milestone to structurally strengthen cost leadership position
The new dissolving wood pulp plant strengthens the Lenzing Group’s backward integration and cost position as well as its specialty fiber growth in line with its sCore TEN corporate strategy. The single-line dissolving wood pulp plant with an annual nameplate capacity of 500,000 tons will be the largest and most competitive production facility of its kind. Dissolving wood pulp is a key raw material required for manufacturing Lenzing’s biobased fibers. The joint venture will supply the entire volume of dissolving wood pulp to the Lenzing Group.

“Wood-based cellulosic fibers offer an important contribution to enhance sustainability in the textile industry. In line with its corporate strategy sCore TEN, Lenzing is committed to drive organic growth in this market. With this investment, we will become more competitive, act more independently and subsequently strengthen our market position. The trust and support of the main shareholders of Lenzing and Duratex were of great importance for this key project”, states Stefan Doboczky, CEO of the Lenzing Group.

Strong focus on sustainability
In planning the new production facility, particular importance was given to sustainability aspects. The joint venture secured FSC®-certified plantations1 covering an area of over 44,000 hectares to provide the necessary biomass. These plantations operate completely in accordance with the guidelines and high standards of the Lenzing Group for sourcing wood and pulp. The plant will operate among the highest productive and energy-efficient in the world and will feed the 40 percent of excess bioelectricity generated on site as “green energy” into the public grid. With this project, Lenzing sets a milestone in its strategy to carbon neutrality.

• Group sales increases by approximately 6 percent compared to the prior year period to 832 million euros due to organic growth in the market segments Digitization, Energy and Chemicals
• Group recurring EBIT at around 54 million euros; adjusted for a positive one-time effect in the prior year approximately on the comparable level of the prior year
• Business unit Composites – Fibers & Materials (CFM) deteriorated substantially in the third quarter 2019 due to the weak development in the market segments Textile Fibers, Wind Energy and Industrial Applications; Graphite Materials & Systems (GMS) developed better than expected on the very good level of the prior quarter reaching overall a record high level in 9M/2019
• Free cash flow from continuing operations improved significantly in the first nine months
• Impairment testing triggers a non-cash impairment charge of approximately 75 million euros in CFM in the third quarter
• Revised guidance of October 25, 2019: Recurring EBIT at CFM in a negative mid-to-high single digit million euros amount and on Group level at 45 to 50 million euros
• Countermeasures initiated to improve earnings of CFM
• Dr. Michael Majerus, Spokesman of the Board of Management of SGL Carbon: ”The structural growth drivers remain intact in our strategically relevant markets. The countermeasures to improve earnings of CFM will be implemented consistently.”

In the third quarter 2019, the business units of SGL Carbon developed very differently. While Graphite Materials & Systems (GMS) showed better than expected results, Composites – Fibers & Materials (CFM) deteriorated compared to the two previous quarters. This is attributable to the weaker development in the market segments Textile Fibers and Industrial Applications. In total, sales revenue in the first nine months 2019 grew by approximately 6 percent to reach 832 million euros. Recurring Group EBIT after nine months reached approximately 54 million euros. Adjusted for a positive one-time effect in the prior year, this was comparable to the prior year level.

In its ad-hoc notification of October 25, 2019, the company revised its guidance for recurring EBIT of CFM downwards to a negative mid to high single digit million euro amount. On the Group level the company now expects a recurring EBIT at 45 to 50 million euros. Due to the lower starting point in 2019 as well as the ongoing weakness in the market segments Textile Fibers and Industrial Applications in the business unit CFM a non-cash impairment charge in the amount of approximately 75 million euros was recorded in the third quarter 2019. In recent years acquired assets of the former joint ventures with BMW and Benteler were not affected by this impairment. In addition, the impairment charge of CFM led to a valuation allowance on deferred tax assets in the amount of 7.4 million euros. Against this background, SGL Carbon now expects a net result of approximately minus 100 million euros for fiscal year 2019.

Schoeller, the global textile solutions manufacturer dedicated to sustainability and innovation for more than 150 years, introduces its new PROEARTH™ collection of biodegradable textiles. The new collection, comprised of bluesign® approved fabrics with biodegradable polyester, will debut as part of its Schoeller FTC (SFTC) line, a joint venture between Schoeller Textil AG and the Taiwanese Formosa Taffeta Co. Ltd., at Premiere Vision Paris, September 17-19, Hall 6, Stand 6J18.

As the founding developer of the bluesign® system, the first activewear and leisurewear manufacturer to receive Oeko-Tex Standard 100 certification, and one of the first companies to sign the UN’s Paris Agreement for climate change, Schoeller continues to be on the cutting edge of sustainable practices, bringing one of the first collections of biodegradable synthetic fabrics to the market. Its most recent development, PROEARTH was created to help offset the more than 16 million tons of textile waste produced in the US alone each year.

Jacket, pant and lining fabrics
The SFTC PROEARTH collection will launch with five, bluesign®-approved fabrics designed for lifestyle, fashion and outdoor categories. Made with virgin polyester that has been optimized for biodegradation and has tested to biodegrade at faster and better rates than competitive offerings, the initial PROEARTH articles available this fall include jacket, pant and lining material qualities with various colour options.

STAMFORD, Conn. – At this year's Paris Airshow [Le Bourget, June 17-23] Hexcel will promote a range of carbon fibers and composite materials used to manufacture high-performance weight-saving structures in civil aircraft, engines, helicopters, and space applications.

Visitors to the Hexcel stand will see an Integrated Wing Panel demonstrator and an I-beam, both made with HiTape® carbon fiber reinforcements. HiTape® dry carbon reinforcements were developed for the automated lay-up of preforms and to complement a new generation of HiFlow™ resin systems, producing high-quality aerospace structures using the resin infusion process. The reinforcements incorporate a toughening veil to enhance mechanical properties and meet the structural requirements for aerospace parts. The I-Beam was manufactured using C-RTM (Compression Resin Transfer Molding) and was injected with Hexcel’s RTM6 resin in a process taking less than five minutes.

Hexcel honeycomb saves weight and enhances stiffness in composite structures, and the company provides a range of engineered core solutions that enable highly contoured parts with precision profiling to be produced to exact customer specifications. A sample part made from aluminum FlexCore® that is CNC machined on both sides and formed and stabilized with both peel ply and flyaway layers of stabilization will be on display.

Another honeycomb innovation is Hexcel’s Acousti-Cap® broadband noise-reducing honeycomb that significantly improves acoustic absorption in aircraft engine nacelles. The acoustic treatment may be positioned at a consistent depth and resistance within the core or can be placed in a pattern of varying depths and/or resistances (Multi-Degrees of Freedom and 3 Degrees Of Freedom), offering an acoustic liner that is precisely tuned to the engine operating conditions. These technologies have been tested at NASA on a full engine test rig and meet all 16 design conditions without trade-offs.
Another Hexcel technology to benefit aircraft engines is HexShield™ honeycomb which provides high-temperature resistance in nacelles. By inserting a thermally resistant material into honeycomb cells, Hexcel provides a core product with unique heat-shielding capabilities that allows for the potential reuse of material after a fire.

With 50 years of experience behind its comprehensive range of high-strength, high-strain PAN-based carbon fibers, Hexcel continues to innovate and is introducing two new fibers to its portfolio. HexTow® HM50 combines high modulus and high tensile strength, making it ideal for commercial and defense aircraft and engines. HexTow® 85 was developed specifically to replace rayon-based carbon fiber for ablative applications.

Another area of expertise that uses HexTow® carbon fiber is additive manufacturing, where Hexcel uses PEKK ultrahigh performance polymers and HexAM™ technology to manufacture carbon reinforced 3D printed parts. This innovative process provides a weight-saving solution for intricate parts in highly demanding aerospace, satellite and defense applications. HexPEKK™ structures offer significant weight, cost and time-to-market reductions, replacing traditional cast or machined metallic parts with a new technology.

Later this year Hexcel will open a joint research and development laboratory in Les Avenières (Isère), France with Arkema to develop carbon fiber-reinforced thermoplastic prepreg tapes for aerospace, space and defense applications. A spool of thermoplastic prepreg tape will be on display on Hexcel’s stand to showcase this cost-effective technology that enables lightweight parts to be produced in faster production cycles for future generations of aircraft.

Hexcel’s stand is located next to Hexcel’s official distributor for aerospace products, Groupe Gazechim Composites. In 2018, Hexcel and Gazechim formed a joint venture, HexCut Services, to provide aerospace and defense customers with customized kitting services that include Hexcel’s innovative carbon fiber prepreg, fabrics and adhesives. Pre-cut kits save customers time and investment, reduce inventory and minimize material losses through scrap reduction.

Decline in revenue due to lower prices for standard viscose, less favorable currencies and lower production volume

• Pressure on prices for key raw materials remains high
• Positive impact due to focus on specialty fibers and further optimization of the product mix
• Expansion project in Mobile temporarily mothballed
• Acquisition of the remaining 30 percent of Lenzing (Nanjing) Fibers Co. Ltd.

The Lenzing Group recorded a solid business development in the first three quarters of 2018. The decline in revenue and earnings compared with the same period of the previous year was essentially based on a mix of lower prices for standard viscose, more unfavorable exchange rates and price increases for key raw materials. The Lenzing Group’s strategic orientation with a focus on specialty fibers had a positive impact in this environment.

Revenue decreased by 5.2 percent to EUR 1,636.2 mn over the comparative period of the previous year. Apart from the high starting base, this was primarily attributable to the expected challenging market environment for standard viscose, less favorable exchange rates and lower production volume. EBITDA (earnings before interest, tax, depreciation and amortization) recorded a decline by 26.8 percent to EUR 290.6 mn due to price increases for key raw materials and higher energy and dissolving wood pulp prices. The EBITDA margin dropped from 23 percent in the first three quarters of the previous year to 17.8 percent. EBIT (earnings before interest and tax) fell by 36.2 percent to EUR 190.3 mn, leading to a lower EBIT margin of 11.6 percent (01-09/2017: 17.3 percent). Net profit for the period dropped by 39 percent from EUR 219.3 mn in the previous year to EUR 133.8 mn. Earnings per share equaled EUR 5.06 (01-09/2017: EUR 8.12).

“The Lenzing Group is currently operating in a challenging environment. Against this background, we are satisfied with the solid business development and the corporate strategy sCore TEN has a positive impact. The new production line in Heiligenkreuz started up successfully and customers’ feedback has been positive,” says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “While many viscose producers are faced with a very tense profit situation, we are well positioned due to our specialty strategy and still expect a satisfactory full year”, Doboczky adds.

Key strategic measures were implemented during the first three quarters of 2018 in line with the sCore TEN strategy. The start-up of new capacities for lyocell fibers in Heiligenkreuz, the production start of LENZING™ ECOVERO™ fibers at the Nanjing site and the investment in another pilot line for TENCEL™ Luxe filaments are important steps to accomplish the goal of increasing the share of specialty fibers in total revenue.

Project in Mobile temporarily mothballed
Due to the decision to temporarily mothball the lyocell expansion project in Mobile, Alabama (USA), in view of the buoyant US labor market and trade tensions between the major trading blocks, the implementation of the expansion plan for specialty staple fibers will be slowed down. The Lenzing Group will put all its effort to readjust the execution of its growth plan to meet strong market demand for its lyocell fibers. This includes an increased focus on the lyocell expansion project in Prachinburi (Thailand).

Advancing forward solutions
Regarding the capacity expansion for specialty products such as TENCEL™ Luxe filaments and LENZING™ ECOVERO™ viscose fibers, Lenzing is still on track. After the introduction of TENCEL™ Luxe branded lyocell filament yarns in the previous year, Lenzing continues to drive innovations in the area of the value chain. In September, the company also announced the successful development of the LENZING™ Web Technology, a new technology platform focusing on sustainable nonwoven products, which will lead to new market opportunities for the industry. Following several years of research and development work and investments totaling EUR 26 mn, the pilot plant at the headquarters in Lenzing has been successfully put into operation.

Largest dissolving wood pulp line worldwide
At the end of 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 single line dissolving wood pulp plant in the state of Minas Gerais (Brazil). This decision supports the self-supply with dissolving wood pulp and the growth in specialty fibers. The joint venture is investigating 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 decisionto build the dissolving wood pulp plant is subject to the outcome of the basic engineering studies and the approval by the respective supervisory boards.

Acquisition of Chinese operation
At the beginning of November the takeover by the Lenzing Group of the remaining 30 percent of its Chinese subsidiary Lenzing (Nanjing) Fibers Co. Ltd. (LNF) from its state-owned joint venture partner NCFC was completed. After closing of the transaction, the Lenzing Group will hold 100 percent of LNF. The acquisition will have a negative impact on net profit of approx. EUR 21 mn for the fiscal year 2018. The purchase of the shares supports Lenzing’s strategic growth as a producer of specialty fibers from the renewable raw material wood in China and worldwide. It paves the way to setting up further production lines for specialty fibers. Lenzing wants to convert LNF into a specialty fibers hub over time.

Expansion of capacities
CAPEX (investments in intangible assets and property, plant and equipment) rose by 35.5 percent year-on-year to EUR 174.1 mn in the first three quarters of 2018. This is primarily attributable to capacity expansions in Heiligenkreuz and the expansion of the existing dissolving wood pulp plant in Lenzing as well as the investments made so far in Mobile.

Outlook
Demand development on the global fiber market remains positive. Lenzing expects wood-based cellulosic fibers to continue to grow at a higher rate than the overall fiber market. In a challenging market environment the Lenzing Group expects solid results for 2018, albeit lower than in the outstanding last two years.

For 2019, Lenzing expects standard viscose markets to remain under pressure because of an ongoing oversupply and very high raw material prices. Lenzing’s specialty fiber business is expected to continue the very positive development.

The above-mentioned development reassures the Lenzing Group in its chosen corporate strategy sCore TEN. Lenzing is very well positioned in this market environment and will continue its consistent focus on growth with specialty fibers.

The Lenzing Group intends to acquire the remaining 30 percent of its Chinese subsidiary Lenzing (Nanjing) Fibers Co. Ltd. (LNF) from its state-owned joint venture partner NCFC. After closing of the transaction, the Lenzing Group will hold 100 percent of LNF. The underlying structured selling process was initiated by the joint venture partner in a state controlled bidding process and today the Lenzing Group received the Share Purchase Agreement draft. The closing of the transaction documents is expected for the end of October. The acquisition will have a negative impact on net profit of the Lenzing Group of approx. EUR 21 mn for the fiscal year 2018.

The purchase of the shares supports Lenzing’s strategic growth as a producer of specialty fibers from the renewable raw material wood in China and worldwide. It paves the way to setting up further production lines for specialty fibers. Lenzing wants to convert LNF into a specialty fibers hub over time.

• 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.

• Lenzing will hold 51 percent in a future joint venture
• Largest single line dissolving wood pulp plant in the world
• Basic engineering and permitting process to be kicked off
• 43,000 hectares FSC® certified plantation secured
• Final investment decision subject to outcome of basic engineering expected in 2019

Lenzing Group, world market leader in specialty cellulosic fibers and Duratex, the largest producer of industrialized wood panels of the Southern Hemisphere, announce that they agreed on the terms and conditions to form a joint venture to investigate building the largest single line dissolving wood pulp (DWP) plant in the state of Minas Gerais, close to Sao Paulo, Brazil. This decision supports the backward integration and the growth in specialty fibers, defined in Lenzing’s corporate strategy sCore TEN.

The joint venture will investigate the construction of a 450,000 t DWP plant, which is expected to become the largest and most competitive single line DWP plant in the world. Dissolving wood pulp is the key raw material for the production of Lenzing’s bio-based fibers. For the future operation, the two companies have secured a plantation of 43,000 hectares that will provide the FSC® certified biomass. The plantation is fully in line with Lenzing’s wood and pulp sourcing policy. The basic engineering and the application for required permits and merger clearances will now be started.

Lenzing will hold 51 percent of the joint venture which will operate the mill, while Duratex’s share will be 49 percent. The estimated cash investment by the joint venture for the construction of the DWP mill is expected to be somewhat above USD 1 bn (based on current FX rates, net of generic tax refunds and the outcome of the basic engineering study). The joint venture will supply the entire volume of dissolving wood pulp to the Lenzing Group. This step is an essential milestone in the group’s ambition to grow its specialty fibers business.

“Specialty cellulosic fibers are an important contribution to make the global textile industry more sustainable. In line with our corporate strategy sCore TEN we are committed to strong organic growth in this field. We are pleased that with Duratex, a recognized leader in sustainable forestry management, we have a strong partner in this joint venture. Together we will create a very sustainable and competitive raw material base for Lenzing’s global expansion plans”, says Stefan Doboczky, Chief Executive Officer of Lenzing Group.

“Projects of this nature are the result of our strategic plan and of our team’s effort towards drawing Duratex’s future. The Company is known for its financial solidity, high quality, innovation and sustainability; the results of a history spanning over six decades. The partnership with Lenzing for the construction of the largest single line dissolving wood pulp plant in the world is an honor for Duratex. Working with Lenzing, a global benchmark in technology, high quality and corporate governance makes us very proud. We are sure that this joint venture is going to be successful”, affirms Duratex’s Chief Executive Officer Antonio Joaquim de Oliveira.

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.

• New collaboration of sustainable viscose suppliers formed in China

Digital Printing Zone debuts at Spring Edition
Despite the economic ups and downs in China over the last few years, demand for premium European textiles remains high.
Whether it be premium wool for the flourishing suiting market, ladieswear fabrics, lace & embroidery for high-end domestic brands each with hundreds of stores across the country, innovative yarns & fabrics for the booming sports and activewear sectors, or original pattern designs for the thousands of new online fashion brands, European suppliers remain the go-to option for Chinese buyers looking for quality and style.

As one of the undisputed leaders in the European textile scene, Italy is always a good bellwether of the trends between Europe and China. After a less than stellar 2016, Italy’s fabric exports to the Mainland China and Hong Kong markets grew by 12.4% in the first 10 months of 2017[1]. The expected demand for European brands at Intertextile Shanghai Apparel Fabrics will be most evident in the SalonEurope zone, which features exhibitors from Austria, France, Germany, Italy, Spain, Switzerland, Turkey and the UK, as well as country pavilions & zones from France, Germany, Italy and Turkey.

There is also continuing demand for overseas expertise when it comes to more technical areas such as sustainability and digital printing, solutions to which can be found in the fair’s All About Sustainability area and Digital Printing Zone.

SalonEurope showcases the continent’s full textile expertise
The best of the best from Europe will be on display in this edition’s SalonEurope, with a range of products across the whole textile spectrum on offer. Some of the highlights this edition include:

• Alumo (Switzerland): celebrating its 100-year anniversary this July, Alumo has undertaken a complete refresh of their brand, highlighting the character of their mill in Appenzell, Switzerland that has deep roots in the local textile industry. This edition, they will showcase a renewed collection of luxury shirting fabrics with intricate designs and added functions such as natural stretch and wrinkle-free, and a newly enlarged, never-out-of-stock ‘Sartorial’ collection.
• Hatfil Tekstil Isletmeleri (Turkey): a Turkish-Italian joint venture, they offer a huge range of yarns including eco-friendly options such as organic, BCI and fair trade yarns, as well as cotton, Tencel, Amicor, bamboo, cashmere, modal and other varieties.
• Hohenstein Textile Testing (Germany): offering testing services, OEKO-TEX® services and certifications, the Hohenstein Quality Label and more.
• Ricamificio Paolo Italy SpA (Italy): an embroidery manufacturer, they have developed a new technique using very thin embroideries to produce a lace-like effect, which can also be customised to the customer’s requirements in no more than four weeks. They have also produced a quilt-like fabric suitable for spring / summer garments which is made from materials such as silk organdie, cotton yarn or lurex to produce a shiny effect.
• Teseo Tessitura Serica Di Olmeda SpA (Italy): for their summer 2019 collection, Teseo is inspired by the natural elements with increased attention to sustainability with GOTS-certified bio silk and eco-friendly yarns. New articles are lighter and enriched with yarn-dyes, include jacquard stripes and checks, gauze and devoré bands to add transparency, and more.

New collaboration of sustainable viscose suppliers formed in China
While the textile industry in China still has a long way to go in terms of sustainability, genuine progress is being made at both a government and company level. January of this year saw the implementation of a new environment protection tax, with companies charged for noise, air & water pollution and generating solid waste[2]. Replacing a pollutant discharge fee that had been in place for 40 years, the new tax is set by local governments – with some of the regions suffering from worse pollution setting higher rates – and also incentivises companies with lower emissions.

In another encouraging move, 10 leading global viscose producers in China have come together to form the Collaboration for Sustainable Development of Viscose (CV) to promote the sustainable sourcing and responsible production of viscose. These 10 producers collectively account for over 50% of the world’s viscose staple fibre production, and have partnered with two trade associations to adopt a sustainability roadmap for the viscose industry. Built around credible international sustainability standards and programmes, the CV Roadmap aims to provide guidance to viscose producers on sustainable sourcing and production practices.

The CV collaboration will make its debut appearance in the fair’s All About Sustainability zone, where visitors can learn more about this initiative, as well as sustainable developments in the Chinese textile industry. Apart from an educational programme and garment display area, the zone will also feature a number of exhibitors other than CV.

Digital Printing Zone debuts at Spring Edition
While digital printing is rapidly gaining traction in the global textile industry, this is especially so in China due to its potential to reduce pollution during the production process. Amongst the exhibitors looking to take advantage of this in the fair’s new Digital Printing Zone is MS Italy, a market leader in the design, development and distribution of innovative digital ink-jet printing systems and associated consumables, which serves the high-end, roll-to-roll textile printing and specialty material markets. Also exhibiting is DIGITEX which will introduce the latest digital- and inkjet-printed natural and manmade fabrics.

Apart from digital printing exhibitors, a day-long forum will inform fairgoers on the exciting possibilities of digital printing. Held on day 2 of the fair, the Fast Fashion and Digital Printing Application Forum features sessions on fast fashion technology & trends and digital printing applications. These are followed by a series of discussions on topics such as flexible supply chains, business opportunities created by digital printing and IP protection. The forum also includes a presentation on the findings of a six-month study conducted by Fashion Print, a Chinese publication, for which they visited hundreds of textile companies, printing and dyeing enterprises, as well as their suppliers to produce a research paper on the digital textile printing market and technology.

In addition to Intertextile Shanghai Apparel Fabrics, four other textile fairs also take place at the National Exhibition and Convention Center: Yarn Expo Spring, Intertextile Shanghai Home Textiles – Spring Edition, fashion garment fair CHIC and knitting fair PH Value.

• Intertextile Shanghai Apparel Fabrics – Spring Edition 2018 is co-organised by Messe Frankfurt (HK) Ltd; the Sub-Council of Textile Industry, CCPIT; and the China Textile Information Centre. For more details on this fair, please visit: www.intertextileapparel.com. To find out more about all Messe Frankfurt textile fairs worldwide, please visit: www.texpertise-network.com.

[1] http://hk.fashionnetwork.com/news/Italian-textile-industry-back-on-growth-track-in-2017,944760.html
[2] http://www.fibre2fashion.com/news/textile-news/china-imposes-environment-protection-tax-beginning-jan-1-239965-newsdetails.html