From the Sector

Die AZL Aachen GmbH, bekannter Innovationspartner für Industriekooperationen auf dem Gebiet der Leichtbautechnologieforschung, startet eines neuen Projekts mit dem Titel "Trends und Designfaktoren für Wasserstoffdruckbehälter". Das Projekt wird Fragestellungen der Industrie in Bezug auf die Wasserstoffspeicherung adressieren.

AZL Aachen GmbH, a recognized innovator in lightweight technologies research and industry collaboration, announces the initiation of a new project titled "Trends and Design Factors for Hydrogen Pressure Vessels". The project aims to address industry needs surrounding hydrogen storage.

Hydrogen has gained significant attention as a key technological solution for decarbonization, with high pressure storage and transportation emerging as vital components. Its applications extend from stationary storage solutions to mobile pressure vessels employed in sectors such as transportation and energy systems.

The AZL team, renowned for its high reputation in providing market and technology insights as well as developing component and production concepts in the format of Joint Partner Projects seeks for companies along the whole composite value chain interested in further developing their application know how in this economically highly relevant field.

The project will provide an in depth exploration of market insights, regulatory standards, and intellectual property landscapes. Beyond this, there is a dedicated focus on staying updated with state of the art and advancements in design, materials, and man ufacturing techniques.

An integral component of the project involves the creation of reference designs by AZL´s engineering team. The reference designs will encompass a variety of pressure vessel configurations and will consider a diverse range of materials and production concep ts.

With the scheduled project start in October 2023, and a project timeline of approximately nine months, AZL encourages companies active across the composite value chain to participate. Companies interested in participating or seeking further information should reach out directly to the AZL expert team.

The viscose specialty fibre manufacturer Kelheim Fibres has entered into a collaboration with MagnoLab, an international network of companies in the textile industry based in the Biella region, Italy.

This partnership highlights the importance of collaboration between different companies to drive innovation and sustainability in the textile industry. Kelheim Fibres sees itself not only as a fibre supplier but also as an innovation partner for the entire industry. Through its Open Innovation approach, Kelheim Fibres fosters the exchange of ideas and knowledge to jointly develop sustainable solutions for the future.

Kelheim Fibres operates several pilot and technical facilities itself. The close collaboration with MagnoLab, which boasts an impressive array of state-of-the-art textile machinery, allows for even more efficient research and development.

The cooperation allows for practical testing, accelerating the implementation of innovations. It also contributes to a closer networking of the European (and thus regional) value chain. Thanks to shorter transport routes within Europe, not only is the environmental impact reduced, but also the realization of innovations in Europe is facilitated.

Dr. Marina Crnoja-Cosic, Director New Business Development, Marketing & Communications at Kelheim Fibres, emphasizes the advantages of the collaboration: " Through close networking with the companies organized under MagnoLab, we can produce small quantities of samples and prototypes using various technologies. This enables us to develop solutions based on our specialty fibres that can be directly transferred to our partners' production facilities within the textile value chain."

Freudenberg Performance Materials (Freudenberg) is launching its latest innovation Evolon® Ultra Smooth to serve the specific packaging needs of technical industries.

Evolon® Ultra Smooth fabrics are low-linting, strong and hard-wearing. The new materials are designed for industrial parts and components which require low-friction, sliding behavior during the part packing and handling procedures. Furthermore, they are durably hydrophobic and available in different weights. The reusable textile containers made of Evolon® Ultra Smooth can be used in various industries to pack and transport even very heavy and sensitive parts without damage.

The Evolon® Ultra Smooth materials have a point-sealed patterned white surface which is very different from the standard Evolon® packaging textiles and which makes them easily identifiable.  

Evolon® Ultra Smooth materials protect the surfaces of industrial and automotive parts by avoiding micro-scratches or lint contamination. By using Evolon® Ultra Smooth reusable packaging to transport parts with highly-sensitive surfaces, customers reduce the number of damaged parts and the reject rate. The innovation is available worldwide. As Evolon® Ultra Smooth is 100% made in Europe, European customers benefit from even greater flexibility in the supply chain and quick go-to-market.

Increasing energy and resource efficiency in the construction sector will be key to the EU’s ambition of achieving climate neutrality by 2050. By enabling the manufacture of strong, durable and lightweight products, composite materials can help the construction sector improve its environmental sustainability, as well as reduce total lifecycle costs. The latest EPTA industry briefing, Pultruded composites contribute to a more sustainable future for construction, discusses how pultruded composites answer the need for materials offering high performance, faster installation, corrosion resistance and low maintenance.

The report is available to download from the EPTA website.

The future of construction
As one of the largest global users of energy and raw materials, the construction industry is under immense pressure to improve its sustainability. At the same time, it must respond to demands for improved performance and reduced total cost of ownership. New materials will be needed to minimise the use of natural resources, enable a reduction of carbon footprint and facilitate circular economy practices. Choosing the optimum materials required for durability throughout the lifecycle will be increasingly important. A shift to off-site production is also forecast, where factory-controlled environments and automated processes can improve quality control, lower waste, and reduce work on site.

Lightweight pultruded parts can be pre-assembled into modules or complete structures in the factory for faster installation on site. Lightweight profiles lower energy use during transportation and installation, and a longer service life combined with minimal maintenance can deliver a reduced through-life carbon footprint. Pultruded parts such as profiles, gratings, beams, tubes and planks are increasingly found in a range of building, construction and infrastructure applications. Examples include bridge decks, fencing, stairs and handrails, train platforms, cladding, utility poles, modular building concepts, and window frames.

One application offering large growth potential for composites is bridges. Composite bridges are being designed to provide a service life of 100 years and unlike steel bridges do not require regular repainting to protect them from corrosion. Over recent years, pultruded glass fibre composite has become a highly popular choice for pedestrian and cycle bridges. Pre-fabricated ‘easy fit’ bridge decking planks, pre-assembled bridge modules and complete bridge ‘kits’ are now available. Corrosion-resistant composite bridges are ideal for use near water or on the coast, and in remote locations where regular maintenance operations would be difficult. A composite bridge can deliver the same performance as a steel structure with a weight saving of up to 50% or more. This enables more streamlined bridge designs which require less substantial supporting structures and foundations, greatly reducing consumption of materials and energy. Lightweight also results in easier logistics and simplified installation. Pultruded are more easily transported to the construction site, with lower fuel consumption, and easier to move on site, often reducing labour requirements and the capacity of lifting equipment.

A lifecycle approach
As the construction industry looks to the future, the environmental and economic benefits of composite materials linked to easier logistics and installation, durability and low maintenance are becoming increasingly valued. More projects are demonstrating the benefits of composite materials and standards covering the design, fabrication and installation of pultruded profiles are making it easier for the construction industry to use them. With ongoing development and collaboration, pultrusion has the potential to contribute to a more sustainable future for construction and many other industries. EPTA will continue to promote the advancement of pultrusion technology and its applications and foster sustainable practices within the industry.

Fong’s Europe will showcase the advanced features of its THEN Smartflow TSF at ITMA 2023.

These include the machine’s smart fabric transport system which ensures extremely even dyeing of the fabric through accurate control of the nozzle pressure and pump power, with movement through the machine via an PLC-controlled plaiting system and variable chamber adjustment depending on fabric characteristics.

The machine is equipped with a heat exchanger enabling it to heat the dyeing liquor quickly and efficiently, to reduce energy consumption. Its bath preparation unit and chemical dosing system ensure accurate and precise dosing of chemicals, dyestuff and salt, reducing chemical waste and optimising results while reducing process times.

The Smartflow TSF operates with a low liquor ratio of down to 1:2.5 with full loading of synthetic fabrics, which means that it requires less water to dye a given amount of fabric compared to traditional dyeing machines. This not only reduces the consumption of water and steam, but also the amount of wastewater generated.

The machine's control panel is easy to use, allowing operators to programme and monitor processes with ease.

To ensure that our four-legged pets are looked after in terms of product safety, quality and durability of their cuddly blankets, cushions or favorite toys, the testing service provider Hohenstein has established its quality label Tested Pet Supplies. In May 2023, Markus Tiemann, Hohenstein Global Head of Retail, had the pleasure of handing over the first quality certificate of its kind to Bernd Brunssen, Head of Quality Assurance at Carstensen Import Export Handelsgesellschaft mbH, located near Hamburg.

The bar for quality products is set high at the globally networked importer and distributor, and the company accordingly commissioned product-testing with Hohenstein testing laboratory from its existing range of dog cushions, toys for dogs and cats, pet transport boxes and food balls for dogs and cats.

The label is designed for the entire range in pet supplies, from chew toys to pet beds, with special attention to the high requirements for textiles. It provides consumers with clear product information on product safety, quality and durability, and also offers pets and their owners security against unwanted residues of chemical substances. Markus Tiemann adds, "To ensure that our four-legged darlings feel completely at ease, we can, depending on the intended use also include additional tests for example chew resistance, scratch resistance, outdoor suitability, water repellency, waterproofness or air permeability and include these in the claim, alongside standard tests."

At ITMA 2023, XORELLA, a specialist in steam setting and conditioning equipment for yarns and fabrics, will launch XO AUTOMATION for the double door XO SELECT conditioning machine series, and XO SOLID, a new machine series to complement XO SMART, XO TREND and XO SELECT machines.

XO AUTOMATION
The new XO AUTOMATION system consists of roller conveyor systems for loading and unloading two-door XO Select conditioning machines. Additional pallet wrapping machine with a turntable, weighting station, label printer, safety fence and security system can complete the system. The XO Select controller and automation system can handle and store individual customer-specific material and packing programmes.  

XO SELECT and XO AUTOMATION are designed for yarn steaming on multiple pallet dimensions and heights up to 2,650mm. The linear material flow passing conveyor and steaming machine avoids any mix between steamed and un-steamed materials. XO AUTOMATION fills the gap between the XO automated moving platform and the fully automated transport system – from spinning hall to warehouse.

XO SOLID
The new cubical XO SOLID combines a high loading space of 1,800mm x 1,700mm x 4, 000mm (H x W x L) through double row pin trolleys or pallets for easy manual loading of six units on floor level without a pit or platform. XO SOLID is therefore designed for installations on upper floor levels. The new frame design combines all necessary components factory preinstalled on a single frame, for easy ‘plug and play’ installation at the customer site. Additional smaller steamer dimensions for two and four loading units are also at the planning stage.

The new XO SOLID incorporates all the renowned features of XORELLA machines based on the long term experience in high temperature dyeing vessel production of FONG’s, including:

• A Siemens controller with OPC UA interface and XO data tool for batch storage.
• A XO EcoPac waterless claw pump or two-stage water ring vacuum pump.
• A high energy efficient accumulator for steam, electric and combined heating.
• Vessel and piping in world-class stainless steel.
• European key components such as pumps, heating elements, valves and sensors

Established in Switzerland in 1967, XORELLA became known in the global textile industry for its innovative indirect steaming system. Since 2002 the company has been a member of the CHTC Fong’s International Group, and a member of SINOMACH Group (China National Machinery Industry Corporation) since 2019.

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

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

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

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

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

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

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

• Sales increase of 12.8% to €1,135.9 million
• EBITDApre improves by 23.4% to €172.8 million
• Net financial debt reduced from €206.3 million to €170.8 million
• Fiscal 2023 expected to be investment and stabilization year

SGL Carbon was again able to improve sales and earnings in fiscal year 2022 following 2021. All four business units contributed to this success.
Sales in fiscal 2022 increased by 12.8% year-on-year to €1,135.9 million (previous year: €1,007.0 million). The rise in sales was mainly due to both volume effects and the successful implementation of pricing initiatives to compensate higher raw material, energy and transport prices. At 23.4%, adjusted EBITDA (EBITDApre) improved at a higher rate than sales and amounted to €172.8 million in fiscal 2022 (previous year: €140.0 million). Increased sales and the associated higher capacity utilization also contributed to the improvement in earnings, as well as focusing on market segments with higher margin potential.
 
Earnings development of SGL Carbon
The increase in EBITDApre by €32.8 million to €172.8 million was mainly driven by the Graphite Solutions business unit (+€30.6 million). The Composite Solutions (+€7.9 million) and Process Technology (+€5.2 million) business units also contributed to the improvement in profitability. Although the Carbon Fibers business unit was able to offset the loss of a lucrative supply contract with an automotive customer in terms of sales with new orders from the wind energy sector, but these sales showed a significantly lower margin level. Accordingly, EBITDApre of this business unit decreased by €11.2 million to €43.2 million (previous year: €54.5 million).

Taking into account net one-off effects and non-recurring items of €8.9 million (previous year: €30.7 million) and depreciation and amortization of €60.8 million (previous year: €60.3 million), reported EBIT amounted to €120.9 million (2021: €110.4 million). This corresponds to an increase of 9.5%.
As a result of the pleasing business performance, the successes of the transformation and non-operating one-off effects and non-recurring items (€8.9 million), a positive Group’s net profit of €126.9 million (previous year: €75.4 million) was achieved in 2022. It should be noted that consolidated net income includes tax income of €31.3 million (previous year: minus €6.2 million). This development is mainly due to valuation adjustments on deferred tax assets amounting to €41.8 million, based on the good business development combined with positive earnings prospects in the USA. Current tax expenses amounted to €11.4 million in 2022 (previous year: €11.9 million).
 
Net financial debt and equity
In fiscal 2022, net financial debt was reduced significantly by 17.2% to €170.8 million compared with the end of 2021 (€206.3 million). The main reason for the decrease is the repayment of financial liabilities in the amount of €29.0 million. Free cash flow decreased from €111.5 million to €67.8 million in 2022. In this context, it should be taken into account that in the previous year, free cash flow included cash inflows of €30.6 million from the sale of land not required for operations.
After 2021, the equity ratio increased again to 38.5% at the end of 2022 (previous year: 27.0% I 2020: 17.5%). Due to the significantly improved earnings situation, the return on capital employed (ROCE) also rose from 8.0% in the previous year to 11.3% in 2022.
 
Development of the business units
As the largest business unit with a share of Group sales of around 45%, Graphite Solutions contributed €512.2 million to Group sales in 2022 (previous year: €443.6 million). The 15.5% increase in sales is based in particular on the positive development of the important market segments Semiconductor & LED and Industrial Applications. Compared to the previous year, sales to customers in the semiconductor & LED industry increased by 49.6%, driven in particular by increasing demand of materials and components for the production of silicon carbide-based high-performance semiconductors. Combined with the increase in sales, GS EBITDApre improved by 34.8% to €118.5 million (previous year: €87.9 million). Accordingly, the EBITDApre margin increased from 19.8% to 23.1%. Volume effects due to higher sales as well as margin effects from the product and customer mix had a positive impact.  Especially the higher sales with customers from the semiconductor industry should be taken into account.

In fiscal 2022, the Process Technology (PT) business unit benefited from the good order situation in recent months and increased its sales by 21.9% to €106.3 million. The main clients of the PT business unit are customers from the chemical industry. The positive development of PT is also reflected in EBITDApre which rose from €4.7 million in the same period of the previous year to €9.9 million. Higher capacity utilization and the successful passing on of increased raw material costs led to an improvement in the EBITDApre margin from 5.4%  to 9.3% in 2022. Energy costs play only a minor role at PT.

In the reporting year, sales of the Carbon Fibers (CF) business unit increased by 3.0% to €347.2 million (previous year: €337.2 million). It should be noted that CF had to absorb the scheduled expiry of a supply contract with an automotive customer at the end of June 2022. These sales were offset by orders from the wind industry and Industrial Applications. However, EBITDApre in the CF division decreased by 20.7% year-on-year to €43.2 million (previous year: €54.5 million). This earnings development is mainly attributable to the expiry of the high-margin automotive contract. In addition, a special effect from energy derivatives in the amount of minus €9.2 million impacted CF earnings in the 1st quarter of 2022. However, the implemented energy price hedges enabled the business unit to maintain its production capability throughout the entire fiscal year, that the weakening of earnings was mitigated.
The Composite Solutions (CS) business unit confirmed its upward trend in fiscal 2022 with a 25.0% increase in sales to €153.1 million (previous year: €122.5 million). The most important market segment for the CS business unit is the automotive industry. In line with the highly positive business performance, EBITDApre of CS increased by 65.3% to €20.0 million (previous year: €12.1 million). This figure also includes non-recurring positive effects of €3.7 million from compensation payments received from automotive customers for premature project terminations.

The non-operating Corporate segment contributed €17.1 million to Group sales (previous year: €16.5 million). In line with continued strict cost management as part of the transformation, EBITDApre improved slightly to minus €18.8 million (previous year: minus €19.2 million).

Outlook
"If we summarize our expectations for the 2023 financial year, it can be summed up under the guiding principle: -invest and stabilize," CFO Thomas Dippold comments on the forecast for 2023.
For the fiscal year 2023 we continue to expect solid demand for our materials and products. In particular, we expect that the demand for special graphite products for high-temperature processes, e.g. in the semiconductor, solar and LED industries, will continue to increase. On the other hand, the first-time full-year effect from the expiry of a supply contract with an automotive customer in the carbon fiber segment and the sale of our business in Gardena (USA) will burden sales development.

"The increasing demand for high-performance semiconductors for electromobility or renewable forms of energy will also boost the demand of components made of graphite for the production of these semiconductors. To benefit from the related opportunities, we will expand our production capacities in this segment and invest a double-digit million amount in 2023 . Based on existing supply relationships, we will implement this investments partly together with our customers," explains CEO Dr. Torsten Derr.
On the cost side, we expect energy and raw material prices to remain at a high level in 2023, along with significant wage increases. Our forecast implies that higher factor costs can be partially passed on to customers through price initiatives.
Based on the assumptions described, we expect Group sales to be at prior-year level and EBITDApre to be between €160 million and €180 million in the financial year 2023.
In the medium term (until 2027), we anticipate a further improvement in our EBITDApre margin between 18% and 19%.

Freudenberg Performance Materials (Freudenberg) is widening its product range of technical packaging textiles. Evolon® ESD protects automotive and industrial parts with electronic components from electrostatic discharge. This includes trim lines, dashboards, mirrors, steering wheels, etc.

The ESD (ElectroStatic Discharge) feature of the new Evolon® technical packing textile provides permanent electrostatic discharging protection and the fabric’s surface resistivity can be customized. This eliminates ESD damage to electronic components during transport because electrostatic charging due to movement and friction is safely prevented. As this kind of damage cannot be detected with the naked eye, Evolon® ESD helps to avoid failures which can occur after the final product is assembled and released. Manufacturers benefit from fewer complaints and warranty costs, as well as better end customer satisfaction.

Further protection feature
Unlike conventional ESD packaging solutions, Evolon® ESD also protects parts surfaces by avoiding micro-scratches or lint contamination. By using Evolon® reusable packaging to transport parts with highly-sensitive surfaces, customers reduce the number of damaged parts and the reject rate.

Additional benefits
Evolon® microfilament textiles are also extremely strong and are available in different weights to meet a wide range of requirements – from lightweight to heavy-duty. They can be used to pack and transport very heavy parts without damage. In addition, Evolon® fabrics are durable, and contain up to 85% recycled PET.