From the Sector

Long-term project business in China remains stable 

Oerlikon has received new large orders for manmade fibers production solutions from three of the world’s leading manmade fibers manufacturers. All three companies are based in China and have been key customers of Oerlikon for many years. The orders are for Oerlikon Barmag’s world-leading filament-spinning technology for the highly efficient production of polyester fibers. The three projects have a total value of more than CHF 600 million (EUR 565 million). A very small proportion of these projects will be recognized in Oerlikon Group’s order intake in 2020, and the majority will be accounted for in 2021 and 2022. On-site delivery and installation of these systems are planned for the period from 2021 to early 2023.

The systems business in China remains largely unchanged despite the short-term interruption caused by the coronavirus epidemic following the Chinese New Year celebrations. Long-term project planning for major customers in the manmade fibers industry has resulted in new major orders being placed with Oerlikon Barmag. One of the three new orders, valued at more than CHF300million (EUR282million), is the largest order ever received by Oerlikon Barmag, based in Remscheid, Germany.

The comprehensive manmade fibers technology solutions by Oerlikon are used along the entire value chain in polyester yarn manufacturing and contain cutting-edge automation and digitalization technologies. Oerlikon’s innovative technologies will enable the three Chinese companies to increase their production capacities for polyester yarn and to remain competitive. Oerlikon Barmag will provide the entire system for WINGS POY and WINGS FDY, as well as the texturing machines from the eFK product family in phases over a period of slightly over two years.

Monforts has recently been involved in a number of R&D trials aimed at improving the performance of the fishing cage nets employed in fish farming operations at its Advanced Technology Centre (ATC) in Mönchengladbach, Germany.

The cultivation of both freshwater and saltwater fish populations under controlled conditions is a global industry valued at around $200 billion annually and only made possible with the use of huge aquaculture nets.

Biofouling
“These nets are very prone to biofouling and to avoid its negative impacts, high-pressure robotic jets are now used to clean them,” explains Monforts Head of Technical Textiles Jürgen Hanel. “Net cleaning is expensive and can also damage current antifouling coatings on the nets, causing contamination as well as fish health and welfare risks.
The development of more effective antifouling coatings for fishing cage nets has been one aspect of R&D work at the Monforts ATC, while the use of how alternative fibres could potentially be coated or finished to replace the polyamide which is currently most widely used has also been explored.
The issue of plastics and synthetic fibres in the oceans has generated global media attention recently, and the aquaculture industry is exploring all avenues that will lead to more sustainable practices.

Expansions
Since its opening in 2013, over €3 million has been invested in equipment at the Monforts ATC, which over an area of 1,200 square metres houses two full finishing lines, engineered to accommodate an extremely diverse range of processes, in addition to a Thermex range for the continuous dyeing of denim.

Net result impacted by operating losses and high impairments in North America

In 2019, Autoneum grew organically by 2.5% and has thereby significantly outperformed the declining market. In Swiss francs, revenue rose slightly to CHF 2 297.4 million. However, as previously communicated, operational inefficiencies in North America and impairments on fixed assets in that region had a particularly strong impact on profitability and led to a net loss of CHF –77.7 million. The Board of Directors therefore proposes that no dividend bedistributed for the 2019 financial year. Based on the new turnaround program launched in North America at the beginning of this year, significant profitability increases are expected for 2020.

2019 was an extremely challenging year for the automobile industry. The continuing weakness of the global economy, ongoing trade disputes and the increasing regulation of mobility impacted vehicle demand negatively. But 2019 was also a year of change for Autoneum internally. An in-depth analysis carried out by the new Group Management in the fall showed a need to reevaluate the Group’s performance over the short- to medium-term. In Business Group North America, the operational and commercial problems have proven more extensive than originally assumed. As a result, the turnaround program launched in spring 2019 was replaced at the beginning of 2020 with a dedicated and far more comprehensive program for the North American sites.

Revenue growth despite a shrinking global market
As a result of weak demand, the number of light vehicles produced worldwide fell again sharply in 2019 compared to the previous year; whereby the decline of almost –6% was much steeper than in 2018. Thanks to numerous production ramp-ups and a favorable model portfolio, Autoneum generated organic revenue growth1 of 2.5%, despite the global market cooling. Revenue consolidated in Swiss francs rose by 0.7% from CHF 2 281.5 million to CHF 2 297.4 million.

Profitability2 impacted by operational inefficiencies and impairments
Operational inefficiencies in North America and impairments on fixed assets in this region were the main reason for the – first-ever – negative net result in 2019. In addition, the sharp drop in automobile production in Europe and China as well as associated lower utilization of production capacities in the affected Business Groups also burdened the Group’s profitability. EBITDA excluding IFRS 16 effects decreased to CHF 126.0 million (2018: CHF 197.2 million), which corresponds to an EBITDA margin of 5.5% (2018: 8.6%). One-time charges from impairments in the amount of CHF –68.0 million had a negative impact on EBIT, reducing it to CHF –32.9 million (2018: CHF 114.1 million). Without these one-time charges, EBIT amounted to CHF 35.0 million. The EBIT margin 1 Change in revenue in local currencies, adjusted for hyperinflation. 2 The figures for the 2019 financial year include IFRS 16 effects. Autoneum Management Ltd . Media Release . March 4, 2020 Page 2/5 excluding impairments was at 1.5% in 2019, and taking those into account the margin decreased to –1.4% (2018: 5.0%).

Featuring the innovative ISKO’s R-TWO™ program, the collection has a new take on sustainability: it relies on fabrics made of reused and recycled materials as well as an advanced design research for the development of a new, conscious style.

Sustainability through the use of highly responsible materials and the experimentation of fits: this is Reloved, the new collection developed by haikure in partnership with leading denim ingredient brand ISKO. Presented with an exclusive preview during Milan Fashion Week, it is an act of love for the planet, the environment and the people.

The project perfectly embodies all the values that made the longstanding partnership between the two brands possible – a responsible approach to innovation and the development of cutting-edge concepts.

Taking into account both materials and design, Reloved features the pioneering ISKO’s R-TWO™ program, which relies on a blend of reused cotton and recycled polyester.

During the processing of raw cotton into yarn, for every 100 kilos of cotton approximately 10% is lost. ISKO collects it and prevents it from becoming waste, adding it back into the spinning process obtaining cotton that is fully traced, documented and audited. This verification process has been invented by ISKO in partnership with its yarn supplier Sanko, offering full clarity into the traceability of reused cotton from field to fabric. It is also certified with the Content Claim Standard – or CCS – of the Textile Exchange.

Recycled polyester comes from clear plastic bottles or, alternatively, it can come from other certified waste: in either case the source material is collected, sorted, stripped of labels and caps, and cleaned to be ground into plastic pellets. These can then be re-spun into new fiber filaments.

Depending on the content percentages, for the recycled polyester ISKO can provide either the Recycled Claim Standard (RCS) or Global Recycled Standard (GRS) certifications, both of which track the recycled raw material through the supply chain from input to final product to verify its integrity.

Designed to tackle over-sourcing, the platform improves the environmental performance impact of yarn-to-fabric production. As ISKO’s latest responsible evolution, ISKO’s latest responsible evolution has resulted also in the perfect solution to enhance the responsible character of the Reloved collection.

The collection’s fresh and innovative take on style combines unisex concepts and oversized fits, is available in one shade of color featuring a variety of prints and is crafted with the planet and its inhabitants in mind. To provide full clarity and traceability from field to shelf, materials and processes are kept under the control of Made By, an independent agency that controls the social and environmental conditions of all elements of the production process.

“haikure and ISKO have always shared the same values and approach to innovation,” explained Elena Faleschini, ISKO Global Field Marketing Manager. “When we have the opportunity to work together, we know that the result is going to be astounding. Reloved is a testament to how fashion can be both innovative and responsible, without compromising on style.” A preview of Reloved was presented on Febuary 22nd, during a special happening that took place at Clan Upstairs (Vicolo Fiori 2, Milan), gathering friends, partners and denim lovers.

The conference on sustainability in production, trade and consumption will take a second round: On March 24, 2020, the Weser-Kurier’s conference SUSTAIN will take place in the run-up to the International Cotton Conference once more. The Bremen Cotton Exchange is again cooperating partner of this event. The theme “City and Change – the Future of the Textile Retail Trade” is on focus this year.

Shirt and trpousers or blouse and skirt – clothing is an instrument of expression, a social must and a major factor of consumption. Internet and debates on climate change have changed the indicators. On the one hand, textile online trade is booming, while local stores have come under pressure to an increasing degree and cities are on the search for new ideas. On the other hand, consumers increasingly ask for products considering aspects of fairness and ecology during production. Manufacturers and stores have to react. These subjects are on focus during the Sustain that takes place on Tuesday, March 24, 2020 in Bremen in the Glocke.

Exciting keynote speakers and panel guest from fashion, science and the textile industry
Sustain will feature outstanding speakers from the economy, politics and society discussing for instance the possibilities of new techniques in stationary retail trade, the compatibility of fair production with business interests of manufacturers as well as the question whether consumers are willing to pay the additional costs of sustainability. These are themes that influence the vitality of the cities just as the purchase decisions of the consumers.

Prof. Dr Niko Paech, Professor of Economics, Wolfgang Krogmann, Advisory Director Primark, Urs-Stefan Kinting, Managing Partner of the Zero Group, Model & TV Presenter Alena Gerber, Rolf Heimann, CEO Hessnatur Stiftung, Kai Falk, Managing Director Communication of the German retail association Handelsverband Deutschland and many others confirmed their participation.

Captivating colours, optimum cost efficiency and a sustainable value chain: these are some of the typical features of Sappi’s Inkjet and Dye Sublimation Papers. The global manufacturer will showcase its diverse, high-quality product ranges at FESPA Madrid, in hall 3, stand D30.

• Transjet Drive dye sublimation paper tailored to industrial printing machines with a glue-belt system
• Scrolljet, a large inkjet paper, with impressively razor-sharp lines
• Digitally printed corrugated board with Fusion Topliner for consumer goods packing and displays

Eye-catching posters, textiles with excellent prints and labels that stand out clearly, this is how brand owners, advertising companies and retailers draw attention to themselves and their products. The comprehensive range of Sappi’s Dye Sublimation Papers, Inkjet Papers and Silicone Base Papers form the perfect basis for impressive brand communication. Customers and potential customers can come and convince themselves at this year’s FESPA event in Madrid, which takes place from 24 to 27 March.

Paper with impressive sustainable qualities
At its large exhibition stand in the Digital Printing hall, Sappi will showcase its Transjet range, which represents highest quality and optimal cost efficiency, offering also environmental advantages, such as low ink consumption and low transfer times. Minimal shrinkage of high elastic textiles is one of the key features of the Sportsline tacky grades. The special Transjet Drive, its extremely smooth backside and fast ink drying on the printable side, allow more efficient production on high-speed printers with glue belt systems. Sappi stands for much more than just the highest paper quality. Professional support through a special team of technical application engineers, Digital Solutions assist customers from their initial product idea to final production ensuring impressive results.

Differentiation through precision and sharpness
With its range of Inkjet papers, Sappi will demonstrate its considerable expertise in large format digital printing in Madrid. At the heart of the exhibition presentation is Scrolljet, a multi-layered coated paper for a wide range of outdoor applications, such as city light and mega light scrolling systems. DT-Plot and Swiss Matt are the best choice for graphic drawings and poster printing due to their exceptional colour results and the high precision and sharpness of the print.

Everything from a single, innovative source
When it comes to making classic packaging, shelf-ready packaging and POS displays stand out from the rest, marketing managers, brand owners and designers can always count on Fusion Topliner with its high degree of whiteness. As the topliner reproduces colours brilliantly and can be processed excellently, products made with this clearly stand out and attract attention. The product range presented by the paper and paperboard specialist is topped off by Silicone Base Papers for self-adhesive applications such as car wrapping, outdoor advertising and office supplies. This makes Sappi a versatile, long-term partner on which customers can rely. Sappi’s paper and paperboard thus go far beyond FESPA 2020: “Where colour comes alive.”

Monforts customer Rajby Textiles is the first company in the world to have finally achieved the Cradle to Cradle (C2C) Platinum Standard for a product. Its Beluga denim fabrics have gained the ultimate sustainability score in all five categories covered by the C2C standard, which is acknowledged as involving the toughest and most thorough testing and assessment it is possible to put a product through.

As such, Beluga denim fabric is based on 100% GOTS certified organic cotton and employs no hazardous chemicals in its production. At the same time, it is both recyclable and biodegradable, with 100% of the energy used in its production offset by green energy and involving a closed loop system with no waste water generated and no material wastage.

The new Beluga denim fabrics, however, represent a new zenith in circular denim production. To meet the active cycling requirement, Rajby has committed to using Beluga denim fabric exclusively in apparel products sold by retailers with take back programmes in place and estimated expected cycling rates for such products

Fashion giant H&M Group and Danish retailer Coop are joining chemical expert NGO ChemSec’s call to action to end the use of harmful PFAS chemicals in products and supply chains.
This commitment comes on the same day as award-winning actor Mark Ruffalo and director Todd Haynes address the EU Parliament to speak about the true story that inspired the duo’s latest film Dark Waters, in which an environmental attorney takes on chemical giant DuPont and exposes decades of PFAS pollution.
ChemSec’s corporate PFAS initiative includes:

• A call on policy makers to regulate PFAS efficiently, without the possibility for manufacturers to simply swap one PFAS chemical for an unregulated “cousin”.
• A call on the chemical industry to put money into innovation and develop safer alternatives to PFAS for all kinds of products.
• A recognition that PFAS are a major health and environmental problem.
• A serious commitment to end all non-essential PFAS uses in products and supply chains.
• A call on all other brands to join this commitment and work towards a phase-out of PFAS in all kinds of consumer products.

The single biggest problem with PFAS is that, with very few exceptions, they are perfectly legal to use. This means that the brands and retailers who want to stop it from being used as ingredients in their products have very limited ways of communicating this in the global supply chain. As long as there is not a restriction in place, suppliers will continue to use these very effective chemicals in manufacturing.  

PFAS, short for per- and polyfluoroalkyl substances, is a chemical family consisting of almost 5,000 industrially produced chemicals. In manufacturing, PFAS are favoured for their durability and well-functioning properties; they provide properties such as non-stick, water repellence and anti-grease to many types of products, including cosmetics, food packaging, frying pans, outdoor gear and firefighting foam.
The industrial use of PFAS has been so prevalent in the last decades that today 99% of every human, including foetuses, have measurable levels of PFAS in their bloodstreams.   
What is worrying is that human epidemiological studies have found associations between PFAS exposure and a number of health disorders, including various cancers, lowered birth weights and negative effects on the immune system.

At the Swiss-Egyptian Investment Forum which took place on February 3 in Cairo (Egypt), the Cotton & Textiles Holding Company and Rieter signed additional contracts related to the modernization program for the Egyptian textile industry.

Further Orders from Egypt:

• Contracts for additional projects signed in Cairo
• Order volume is around 30 million Swiss francs
• Order intake in the first half year of 2020 expected

The total volume of the contracts sums up to around 210 million Swiss Francs, including the contracts which had been signed at ITMA 2019 in Barcelona and which represent a volume of around 180 million Swiss Francs.

Rieter expects the full amount of orders to be booked as order intake in the first half year of 2020. So far, 165 million Swiss Francs have been booked.

The Trevira CS joint booth at Heimtextil 2020 was once again a success.

Trevira looks back on a successful trade fair appearance at Heimtexil 2020. The concept of a joint booth together with customers along with the presentation of product innovations and a special exhibition dedicated to the contract sector has once again proved its worth. Trevira hosted 31 co-exhibitors thus increasing the number of participants again compared to last year. Members of the entire textile value chain were present at the Trevira stand: from the fibre production and yarn manufacture, to the colouring, weaving and warp and weft knitting stages, to the textile editor.

Klaus Holz, CEO Trevira GmbH: „We are pleased about the very positive feedback we got on our joint booth at Heimtextil 2020 from our customers and the visitors to our stand. It shows that our concept is successful and that the booth works well as a market place for Trevira CS.”

Product novelties were presented in an Innovation Park. Under the headline “Recycling at Trevira” the fibre producer presented its sustainable product range and diversified approaches to recycling: flame retardant fibres are produced from residual materials, which are reprocessed in an agglomeration plant. The recyclates are then deployed in the spinning facility to make new, high-quality products consisting of 100 % pre-consumer recycled material. Recycled, flame retardant filaments are produced from PET bottles and have a recycled content of 50 %. Standard polyester spun-dyed filament yarns are also available in a recycled version. Produced from PET bottles these yarns have a recycled content of 100 %.

In order to produce flame retardant fabrics which are also high-performing  in outdoor applications, Trevira now offers six more colours in addition to the existing colour range of 24 UV-stable, spun-dyed filament yarns. Trevira had been awarded the „Brandenburger Innovationspreis Kunststoffe und Chemie 2019“ for this innovation.

Cationic dyeable fibres and filament yarns enhance the Trevira portfolio of flame retardant specialties. They are used to create melange designs in fabrics, which still represents a strong trend in the home textile sector.

To meet the ever more complex demands of the market for more flexibility in design and additional functions as well as for sustainable products Trevira has introduced an enhanced Trevira CS branding concept, consisting of the three brands Trevira CS, Trevira CS flex und Trevira CS eco. Assigned according to product features, all of them stand for tested safety.