From the Sector

Reset
16.08.2022

Suominen to implement surcharges in North America

Suominen announces general surcharges on all its products in North America effective immediately. These surcharges are a response to significant unexpected increases in raw materials, energy and freight costs.

“We have done all we can to mitigate these increases on behalf of our customers. Suominen can no longer absorb the full extent of these increases. We are living in an unusual time in the nonwovens industry with unprecedented and unexpected cost increases accompanied by volatility in demand patterns and supply chain disruptions. We understand circumstances are extremely challenging and we remain committed to serving our customers during this difficult period,” says Lynda A. Kelly, SVP, Americas.

Suominen announces general surcharges on all its products in North America effective immediately. These surcharges are a response to significant unexpected increases in raw materials, energy and freight costs.

“We have done all we can to mitigate these increases on behalf of our customers. Suominen can no longer absorb the full extent of these increases. We are living in an unusual time in the nonwovens industry with unprecedented and unexpected cost increases accompanied by volatility in demand patterns and supply chain disruptions. We understand circumstances are extremely challenging and we remain committed to serving our customers during this difficult period,” says Lynda A. Kelly, SVP, Americas.

Source:

Suominen

(c) Shima Seiki
16.08.2022

SHIMA SEIKI exhibiting at FEBRATEX 2022

Japanese flat knitting machine manufacturer SHIMA SEIKI MFG., LTD. will exhibit at the Brazilian Textile Industry Fair (FEBRATEX 2022) this month. On display will be the cutting edge in computerized flat knitting technology, represented by the latest WHOLEGARMENT® machines and design system.

The flagship MACH2XS series features the company’s original SlideNeedle™ on four needle beds and spring-type sinker system supporting a wide range of high-quality WHOLEGARMENT® knitting in all needles. The versatile MACH2S is capable of both WHOLEGARMENT® knitting and shaping on a conventional V-bed. SVR123SP features a special loop presser bed and is capable of producing unique woven-like hybrid fabrics as well as technical textiles. At FEBRATEX it will demonstrate its capability by knitting shoe uppers. The SVR and N.SSR workhorse machines set the industry benchmark for shaping machines, with SVR202 featuring tandem knitting capability for flexible operation. The SFG and SFG-I glove knitting machines rounds out the comprehensive lineup.

Japanese flat knitting machine manufacturer SHIMA SEIKI MFG., LTD. will exhibit at the Brazilian Textile Industry Fair (FEBRATEX 2022) this month. On display will be the cutting edge in computerized flat knitting technology, represented by the latest WHOLEGARMENT® machines and design system.

The flagship MACH2XS series features the company’s original SlideNeedle™ on four needle beds and spring-type sinker system supporting a wide range of high-quality WHOLEGARMENT® knitting in all needles. The versatile MACH2S is capable of both WHOLEGARMENT® knitting and shaping on a conventional V-bed. SVR123SP features a special loop presser bed and is capable of producing unique woven-like hybrid fabrics as well as technical textiles. At FEBRATEX it will demonstrate its capability by knitting shoe uppers. The SVR and N.SSR workhorse machines set the industry benchmark for shaping machines, with SVR202 featuring tandem knitting capability for flexible operation. The SFG and SFG-I glove knitting machines rounds out the comprehensive lineup.

Demonstrations will also be performed on SHIMA SEIKI’s SDS-ONE APEX4 3D design system that is at the core of the company’s “Total Knitting System” concept. With comprehensive support of all aspects throughout the knit supply chain, SDS-ONE APEX4 integrates knit production into one efficient workflow from yarn development, product planning and design to machine programming, production and even sales promotion. Especially effective is SDS-ONE APEX4’s capability to improve on the planning process with virtual sampling. Photo-realistic simulation capability minimizes the need for sample-making, effectively reducing time, material and cost from the prototyping process.

15.08.2022

THE ITALIAN LUSTER at Munich Fabric Start

Munich Fabric Start presents a new project-area that will take place during the next edition.
BLUEZONE with CATALYZER and KEYHOUSE will be the place to be for the blue community on 30 and 31 August. As a global key event for the denim industry, 90 international denim mills, weavers, manufacturers and suppliers will show their latest innovations and trends in the Zenithhalle, the Kohlebunker and the Kesselhaus.

"THE ITALIAN LUSTER" will offer all visitors a deep dive into the Made in Italy supply chain with companies that have turbocharged growth by focusing on quality, innovation and research. Well-known and international companies that can make an important contribution to European and global brands.

From the production of trimmings and accessories, to the creation of unique fabrics, to the inspiration of new collections and their realization to the finishing of the garments, Made in Italy still represents the reality par excellence focused on ethical and sustainable production.

Munich Fabric Start presents a new project-area that will take place during the next edition.
BLUEZONE with CATALYZER and KEYHOUSE will be the place to be for the blue community on 30 and 31 August. As a global key event for the denim industry, 90 international denim mills, weavers, manufacturers and suppliers will show their latest innovations and trends in the Zenithhalle, the Kohlebunker and the Kesselhaus.

"THE ITALIAN LUSTER" will offer all visitors a deep dive into the Made in Italy supply chain with companies that have turbocharged growth by focusing on quality, innovation and research. Well-known and international companies that can make an important contribution to European and global brands.

From the production of trimmings and accessories, to the creation of unique fabrics, to the inspiration of new collections and their realization to the finishing of the garments, Made in Italy still represents the reality par excellence focused on ethical and sustainable production.

"THE ITALIAN LUSTER" will allow all visitors an incredible journey into the Italian supply chain that has the ability to meet any demand of brands, from small to large production needs.

On the top floor of the Catalyzer Hall, it will be possible to view the individual collections of the companies in attendance and receive a beautiful gift specially created by the CADICA GROUP company from Carpi.

 
Participants
ACM - TRIMS AND ACCESSORIES PRODUCER
ACM was founded in 1982.
Since 1982, ACM has been providing the fashion world with unique, sought-after and customized details, guaranteeing prestigious and innovative workmanship. Each and every product is the result of the care we take at every stage of our production process: from the prototype, designed by putting the consumer's health first, to production with state-of-the-art machinery, which allows for fine workmanship and cutting-edge customization, while minimizing the impact on the environment (we are GRS certified) and complying with the strictest eco-toxicological regulations.

FASHION ART - LUXURY FASHION DESIGN
Fashionart is the brainchild of Andrea Rambaldi, who, after learning his trade from his parents, his mother a seamstress and his father the owner of a dye shop, decided to pursue a freelance career.
He began by collaborating with companies in the textile sector, where he deepened his knowledge in the field of chemistry and industrial processes, touching on the problems of processing cycles.
The real turning point came as a result of an important job for the Maison Chanel, which recognized the originality and effectiveness of his technical proposals. From that moment, this is 2008, FashionArt was born, a company focused on luxury fashion and design, expert in the design and production of garments.
From the idea to the final product, the company is able to support the client throughout the entire production process.
Since then, the company has grown and developed exponentially thanks to a team of managers, artists and experts whose experience makes them a benchmark in the high fashion industry. Fashionart operates exclusively in high fashion, a very difficult field in which to combine experience and technique with art and creativity, where our potential can be expressed to the fullest.

ELLETI - GARMENTS AND WASHING MAKER
Advocate of an approach that combines tradition, creativity, and innovation, for over 30 years Elleti Group has defined standards of absolute excellence for the denim industry. Born in the 80s in San Bonifacio, near Verona, the company developed in a one-of-a-kind context, a hotbed of ideas that led to the defining and establishing of new professions and skills in the field of denim treatment and garment personalization. Led by Luigi Lovato, right from the start the company established itself on the denim scene thanks to an ambitious and pioneering investment in new solutions. The following ten years mark an important growth which leads to the internationalization both of brand and production. After the implementing of a new department for garment dyeing, Elleti Group was ready to welcome the ever-increasing international demand, equipping itself with the first laundry in Tunisia, a country logistically central in the Mediterranean area, and as a result, ideal for the development of a complete textile supply chain. This successful story continues to unfold in the 2000s, a decade that marks the opening to the market of garment making thanks to two new structures in Romania, and peaks with the acquisition of Martelli Lavorazioni Tessili. Today Elleti Group stands firm in the market as a result of a complete offer that preserves the company’s artisanal vocation enriched through a constant process of responsible innovation.

In addition, companies BERTO INDUSTRIA TESSILE and OLIMPIAS GROUP will participate in the project by presenting their collections within their booths in the Catalyzer hall.

Source:

EFFE-BI SRL PR & COMMUNICATION

(c) adidas AG
12.08.2022

adidas Originals introduces the NMD V3 Silhouette

In 2015, adidas Originals launched the NMD silhouette – taking cues from the brand’s inimitable archive in order to create a shoe that disrupted the sneaker world at the time. Six years later and the Trefoil has returned with an updated take on the original innovator, channeling the very same independent mindset to present the  NMD V3.

Built for a life in motion, the NMD V3 reimagines its own iconic heritage with a distinctly forward thinking vision. The silhouette features a re-engineered mesh that wraps around the foot, a transparent heel clip, and BOOST cushioning that’s partially encapsulated in a TPU shell. The NMD V3 also comprises an upper made with a high-performance yarn which contains at least 50% Parley Ocean Plastic – re-imagined plastic waste, intercepted on remote islands, beaches, coastal communities and shorelines – and 50% recycled polyester.

In 2015, adidas Originals launched the NMD silhouette – taking cues from the brand’s inimitable archive in order to create a shoe that disrupted the sneaker world at the time. Six years later and the Trefoil has returned with an updated take on the original innovator, channeling the very same independent mindset to present the  NMD V3.

Built for a life in motion, the NMD V3 reimagines its own iconic heritage with a distinctly forward thinking vision. The silhouette features a re-engineered mesh that wraps around the foot, a transparent heel clip, and BOOST cushioning that’s partially encapsulated in a TPU shell. The NMD V3 also comprises an upper made with a high-performance yarn which contains at least 50% Parley Ocean Plastic – re-imagined plastic waste, intercepted on remote islands, beaches, coastal communities and shorelines – and 50% recycled polyester.

More information:
adidas Originals adidas shoes
Source:

adidas AG

Photo: Bogner
11.08.2022

BOGNER Golf Collection Fall/Winter 2022

The BOGNER Golf collection combines an active lifestyle with luxurious comfort and a hint of glamour. Highly functional essentials are the best equipment for long days on the golf course: a waterproof finish and taped seams offer protection from the rain; high-performance Thermore® insulation gives mid-layers moisture-regulating, quick-drying and warming qualities; Powerstretch guarantees freedom of movement, and the lightweight quality of tech jersey ensures the best in comfort.

Each BOGNER golf collection is used to layer styles individually to create the perfect golf outfit according to the needs and regardless of the season. The selection of pants, polos, skirts, jackets and accessories combine sporty appeal and timeless style. Modern contrast stripes, monochrome elegance, neutral colors and sporty silhouettes – true to the motto Athluxury Sports Fashion.

The BOGNER Golf collection combines an active lifestyle with luxurious comfort and a hint of glamour. Highly functional essentials are the best equipment for long days on the golf course: a waterproof finish and taped seams offer protection from the rain; high-performance Thermore® insulation gives mid-layers moisture-regulating, quick-drying and warming qualities; Powerstretch guarantees freedom of movement, and the lightweight quality of tech jersey ensures the best in comfort.

Each BOGNER golf collection is used to layer styles individually to create the perfect golf outfit according to the needs and regardless of the season. The selection of pants, polos, skirts, jackets and accessories combine sporty appeal and timeless style. Modern contrast stripes, monochrome elegance, neutral colors and sporty silhouettes – true to the motto Athluxury Sports Fashion.

Source:

Willy Bogner GmbH & Co. KGaA

Foto: Freudenberg Performance Materials
11.08.2022

Freudenberg Friction Inserts at WindEnergy Hamburg 2022

Freudenberg Performance Materials is introducing Freudenberg Friction Inserts to trade visitors at WindEnergy, the leading trade fair for the international wind energy industry. Freudenberg Friction Inserts is a unique technology aimed at increasing the power density of wind turbines.

The Freudenberg Friction Inserts (FFI) technology is based on a special very thin nonwoven carrier material coated on one side with hard particles. The FFI are customized to fit each application, in terms of both the geometry and the construction parameters of the connection. As they do not create a gap they can be applied exactly where they are needed.

When placed in the joint, these hard particles penetrate into the surfaces of the two joining parts creating a micro interlock, thus reliably increasing the friction coefficient and achieving higher torque transmission in connections. This results in higher performance and a significant improvement in the efficiency of wind turbines. In addition, it enables the downsizing of components without compromising performance, reducing weight and material.

Freudenberg Performance Materials is introducing Freudenberg Friction Inserts to trade visitors at WindEnergy, the leading trade fair for the international wind energy industry. Freudenberg Friction Inserts is a unique technology aimed at increasing the power density of wind turbines.

The Freudenberg Friction Inserts (FFI) technology is based on a special very thin nonwoven carrier material coated on one side with hard particles. The FFI are customized to fit each application, in terms of both the geometry and the construction parameters of the connection. As they do not create a gap they can be applied exactly where they are needed.

When placed in the joint, these hard particles penetrate into the surfaces of the two joining parts creating a micro interlock, thus reliably increasing the friction coefficient and achieving higher torque transmission in connections. This results in higher performance and a significant improvement in the efficiency of wind turbines. In addition, it enables the downsizing of components without compromising performance, reducing weight and material.

FFI help to improve the reliability of connections and thus of the entire wind turbine. Furthermore, they eliminate slipping and prevent fretting of connections.

Other examples of applications for FFI are highly loaded flange connections between the rotor shaft and gearbox, connections between the main bearing and the machine carrier housing, the gearbox to generator, or at the pitch gear or ring gear. They increase the friction co-efficient between two components.

Source:

Freudenberg Performance Materials

11.08.2022

Milliken expands Yarn Production capabilities

  • Milliken purchases spinning plant from Gildan to strengthen internal yarn production

Milliken & Company, a diversified global manufacturer innovating in the textile, chemical, floor covering and healthcare industries, recently acquired one of the Frontier yarn plants in Mayodan, North Carolina, from Gildan. This plant acquisition expands Milliken’s open-end yarn production for its protective fabrics, workwear, government and defense, industrial, and napery textile business units.

The Frontier Spinning Plant #3, which will be renamed the Two Rivers Plant as a nod to its dedicated team and the community it serves, will become a spinning hub for Milliken. Multiple Milliken textile plants throughout the Southeast will source their yarn needs from the Two Rivers Plant.

“Adding this plant to the Milliken manufacturing footprint helps us meet current production needs and offers additional capacity for future growth,” says Kevin Brown, senior vice president of global operations for Milliken’s Textile Business. “The expansion helps us create a resilient supply chain that offers consistency and surety for both our product lines and customers.”

  • Milliken purchases spinning plant from Gildan to strengthen internal yarn production

Milliken & Company, a diversified global manufacturer innovating in the textile, chemical, floor covering and healthcare industries, recently acquired one of the Frontier yarn plants in Mayodan, North Carolina, from Gildan. This plant acquisition expands Milliken’s open-end yarn production for its protective fabrics, workwear, government and defense, industrial, and napery textile business units.

The Frontier Spinning Plant #3, which will be renamed the Two Rivers Plant as a nod to its dedicated team and the community it serves, will become a spinning hub for Milliken. Multiple Milliken textile plants throughout the Southeast will source their yarn needs from the Two Rivers Plant.

“Adding this plant to the Milliken manufacturing footprint helps us meet current production needs and offers additional capacity for future growth,” says Kevin Brown, senior vice president of global operations for Milliken’s Textile Business. “The expansion helps us create a resilient supply chain that offers consistency and surety for both our product lines and customers.”

More information:
Milliken acquisiton
Source:

Milliken

11.08.2022

BB Engineering at the K Show 2022

As a sub-exhibitor of Oerlikon, BB Engineering will present its product range in the fields of extrusion, mixing and filtration as well as PET recycling with the VacuFil and VarioFil R+ systems at the K show 2022.

BB Engineering has been focusing its development work increasingly on recycling technologies for several years. In addition to extruders, filters and mixers that are suitable for both recycling processes and the processing of recyclate, BB Engineering offers a complete PET recycling plant called VacuFil.

As a sub-exhibitor of Oerlikon, BB Engineering will present its product range in the fields of extrusion, mixing and filtration as well as PET recycling with the VacuFil and VarioFil R+ systems at the K show 2022.

BB Engineering has been focusing its development work increasingly on recycling technologies for several years. In addition to extruders, filters and mixers that are suitable for both recycling processes and the processing of recyclate, BB Engineering offers a complete PET recycling plant called VacuFil.

With VacuFil, BB Engineering has developed an innovative PET LSP recycling process. The process combines gentle large-scale filtration and targeted IV regulation for consistently outstanding rPET melt quality. Thus, much more than simple "downcycling" is possible with VacuFil. VacuFil processes a wide range of input materials - post-production and post-consumer. The patented key component Visco+ vacuum filter removes volatile impurities quickly and reliably. VacuFil is a modular system that can be designed for different recycling applications. Simple granulation is possible, but also direct feeding into further processing, e.g. in the synthetic fiber spinning mill. BBE offers VacuFil in combination with its own VarioFil compact spinning plant to produce polyester yarn.

At the K show 2022, visitors can experience the VacuFil Visco+ recycling technology in operation with a connected VarioFil spinning plant and see live how recycling yarn is produced from PET waste.

Source:

BB Engineering GmbH

Foto: Unplash
10.08.2022

High-tech center for cotton processing and fiber-to-fiber recycling being built in Africa

IFFAC (Impact Fund for African Creatives) has revealed plans which will revolutionise West African textile and garment production at one stroke. The fund is converting a partially disused textile mill in the region into a hi-tech centre for processing local cotton and recycling waste fabric, to produce both fabric for further processing and new clothes. The mill will be equipped with modern equipment, all sustainably powered by hydroelectricity from the nearby Volta Dam.

West Africa grows about 6% of the world’s cotton but only a tiny fraction of that crop is processed on the continent, the vast majority being shipped thousands of miles to Asia before being shipped back again as finished or part-finished fabrics. The mill project will end the continent’s reliance on such an unsustainable practice with all the obvious financial and environmental benefits.

IFFAC (Impact Fund for African Creatives) has revealed plans which will revolutionise West African textile and garment production at one stroke. The fund is converting a partially disused textile mill in the region into a hi-tech centre for processing local cotton and recycling waste fabric, to produce both fabric for further processing and new clothes. The mill will be equipped with modern equipment, all sustainably powered by hydroelectricity from the nearby Volta Dam.

West Africa grows about 6% of the world’s cotton but only a tiny fraction of that crop is processed on the continent, the vast majority being shipped thousands of miles to Asia before being shipped back again as finished or part-finished fabrics. The mill project will end the continent’s reliance on such an unsustainable practice with all the obvious financial and environmental benefits.

As well as producing fabric from sustainably grown virgin cotton, a joint venture with Shandong-based WOL Textiles Ltd., a privately owned plant that has long supplied the African market, the mill will be home to a state-of-the-art shredding and recycling facility, a joint venture between IFFAC and the Dutch Circularity B.V. CEO Han Hamers of Circularity B.V. in The Netherlands, has been involved in the production of 100% circular knit and woven articles.

The mill project is expected to create over a thousand jobs. The surrounding area already boasts a significant number of experienced textile workers ready to be retrained on the new equipment. While the majority of the products created will be sold within the region, all processes will confirm to new EU Supply Chain Law to allow for the possibility of export.  

Output is forecast at six million pieces of finished clothing and twenty-five million metres of spun and woven cloth per year. In total, thirty million US$ of investment will be made in the site with operations ready to begin next year (2023).

More information:
IFFAC Africa Recycling
Source:

Circularity Germany GmbH i.G.

10.08.2022

Indorama Ventures' Results for 2Q22: Fibers segment -35% QoQ

  • Record Revenue of US$5,451M, an increase of 23% QoQ and 53% YoY
  • Record Reported EBITDA of US$1,010M, up 29% QoQ and 83% YoY
  • Reported Net Profit of THB 20.3B, an increase of 44% QoQ and 143% YoY.
  • Reported EPS of THB 3.58 (LTM2Q22: 8.11) and Core EPS of THB 2.32 (LTM2Q22:6.16)

Indorama Ventures Public Company Limited (IVL), a global sustainable chemical producer, reported record 2Q22 earnings as the company’s global integrated model continues to benefit from strong consumer trends and management responded effectively to market disruptions.

IVL posted a record Core EBITDA of US$758 million in the second quarter, up 17% QoQ and 59% YoY. Sales revenue rose by about 11% QoQ on a same-store basis, supporting a Core EBITDA margin of 14%. The combination of strong sales and improved margins helped offset higher energy costs in the U.S. and Europe, while management leveraged the company’s leading position in local and regional markets to ensure uninterrupted customer service levels as higher crude oil prices impacted raw materials costs.

  • Record Revenue of US$5,451M, an increase of 23% QoQ and 53% YoY
  • Record Reported EBITDA of US$1,010M, up 29% QoQ and 83% YoY
  • Reported Net Profit of THB 20.3B, an increase of 44% QoQ and 143% YoY.
  • Reported EPS of THB 3.58 (LTM2Q22: 8.11) and Core EPS of THB 2.32 (LTM2Q22:6.16)

Indorama Ventures Public Company Limited (IVL), a global sustainable chemical producer, reported record 2Q22 earnings as the company’s global integrated model continues to benefit from strong consumer trends and management responded effectively to market disruptions.

IVL posted a record Core EBITDA of US$758 million in the second quarter, up 17% QoQ and 59% YoY. Sales revenue rose by about 11% QoQ on a same-store basis, supporting a Core EBITDA margin of 14%. The combination of strong sales and improved margins helped offset higher energy costs in the U.S. and Europe, while management leveraged the company’s leading position in local and regional markets to ensure uninterrupted customer service levels as higher crude oil prices impacted raw materials costs.

Fibers segment posted Core EBITDA of US$55 million, a decrease of 35% QoQ and 15% YoY, as sales declined 11% QoQ. The segment was impacted by lower demand in the Lifestyle vertical amid the China lockdown while higher freight rates restricted exports. The Hygiene vertical was impacted by volumes at Avgol’s Russia site along with increased polypropylene prices, while strength in the replacement tires market partially offset the ongoing semiconductor shortage, resulting in a stable performance for Mobility.

Source:

Indorama Ventures Public Company Limited

10.08.2022

Launch of international in-store collection program at Mustang

Today’s system of «take – make – waste» needs to change. New textiles are produced used and discarded instead of putting them to a second use. The production of new textiles requires natural resources that are limited, and the current system has a significant negative impact on our planet. The transition to a circular system, where garments are kept in use for longer, is an opportunity to harness untapped potential around customer loyalty, economic growth, and ecological sustainability.

To move away from the linear system and enable products to be made out of post-consumer textile waste, TEXAID continues to expand its offering for in-store collection programs throughout Europe and the USA.

TEXAID is partnering with Mustang to offer an in-store collection program. At scale and paired with TEXAID, in-store collection of used clothing enables conservation of resources because it allows items to be directly sorted for their next and most environmentally friendly lifecycle. This service can now be found in over 70 Mustang stores across Germany, Austria, Belgium, Switzerland, Czech Republic, France, Hungary, the Netherlands, and Poland.

Today’s system of «take – make – waste» needs to change. New textiles are produced used and discarded instead of putting them to a second use. The production of new textiles requires natural resources that are limited, and the current system has a significant negative impact on our planet. The transition to a circular system, where garments are kept in use for longer, is an opportunity to harness untapped potential around customer loyalty, economic growth, and ecological sustainability.

To move away from the linear system and enable products to be made out of post-consumer textile waste, TEXAID continues to expand its offering for in-store collection programs throughout Europe and the USA.

TEXAID is partnering with Mustang to offer an in-store collection program. At scale and paired with TEXAID, in-store collection of used clothing enables conservation of resources because it allows items to be directly sorted for their next and most environmentally friendly lifecycle. This service can now be found in over 70 Mustang stores across Germany, Austria, Belgium, Switzerland, Czech Republic, France, Hungary, the Netherlands, and Poland.

More information:
Texaid Mustang circularity
Source:

TEXAID

10.08.2022

SGL Carbon: More capacities for graphite products for use in the semiconductor industry

  • Rising global demand for particularly high-performance silicon carbide (SiC)-based semiconductors

  • Increase in production capacities at the Shanghai (China), St. Marys (USA) and Meitingen (Germany) sites

SGL Carbon will significantly increase capacities for the production of graphite products for the semiconductor industry by 2024. As part of the investment budget for the Business Unit Graphite Solutions set out in the medium-term planning, a mid-range double-digit million euro amount will be made available for the expansion of production over the next two years. The company is thus responding to the strong growth in demand in this sector and strengthening its commitment to the global megatrend of digitalization.

  • Rising global demand for particularly high-performance silicon carbide (SiC)-based semiconductors

  • Increase in production capacities at the Shanghai (China), St. Marys (USA) and Meitingen (Germany) sites

SGL Carbon will significantly increase capacities for the production of graphite products for the semiconductor industry by 2024. As part of the investment budget for the Business Unit Graphite Solutions set out in the medium-term planning, a mid-range double-digit million euro amount will be made available for the expansion of production over the next two years. The company is thus responding to the strong growth in demand in this sector and strengthening its commitment to the global megatrend of digitalization.

The expansion program will take place in several steps over the next two years. In St. Marys, North America, and at the Chinese site in Shanghai, capacities for purification and for high-precision, computer-controlled processing of graphite components and felts will be expanded. In Meitingen (Germany), a new plant for the production of carbonized and graphitized soft felt is under construction. Further capacity expansions at various locations are being planned.

Source:

SGL CARBON SE

10.08.2022

Bluesign defines “sustainable attributes” for approved chemicals

By defining “sustainable attributes” for bluesign® APPROVED chemicals registered in the bluesign® FINDER, Bluesign is furthering its ability to provide more sustainable solutions by providing specified search functions to help chemical suppliers and the textile industry make better informed decisions. The bluesign® FINDER is a web-based, advanced search engine for manufacturers. It contains a positive list of preferred chemical products. Today more than 20,000 bluesign® APPROVED chemical products are registered in the bluesign® FINDER.

Bluesign® APPROVED chemical products meet the stringent bluesign® CRITERIA for chemical assessment. That means that the approved chemicals are produced following occupational health and safety (OH&S) practices with less environmental impact and excellent Product Stewardship following the principles of Input Stream Management and sustainable chemistry.

By defining “sustainable attributes” for bluesign® APPROVED chemicals registered in the bluesign® FINDER, Bluesign is furthering its ability to provide more sustainable solutions by providing specified search functions to help chemical suppliers and the textile industry make better informed decisions. The bluesign® FINDER is a web-based, advanced search engine for manufacturers. It contains a positive list of preferred chemical products. Today more than 20,000 bluesign® APPROVED chemical products are registered in the bluesign® FINDER.

Bluesign® APPROVED chemical products meet the stringent bluesign® CRITERIA for chemical assessment. That means that the approved chemicals are produced following occupational health and safety (OH&S) practices with less environmental impact and excellent Product Stewardship following the principles of Input Stream Management and sustainable chemistry.

In addition to the existing functions within the bluesign® FINDER, bluesign® SYSTEM PARTNER chemical suppliers can claim selected sustainability attributes for their bluesign® APPROVED chemical products that will be displayed within the bluesign® FINDER. Sustainability claims will be verified by Bluesign during on-site assessments and through chemical assessments. Requirements and data provisions will be laid out in the criteria: bluesign® CRITERIA for chemical assessment ANNEX: Sustainability attributes for bluesign® APPROVED chemical products.

The bluesign® FINDER will be amended with search functions starting this year with the below first priority attributes:

  1. Renewable feedstock (biomass* or bio-based)
    The sustainability attribute ‘Renewable feedstock (biomass or bio-based)’ is intended for use with any chemical product that contains at least 20% biomass content by weight in the form of biomass-derived carbon.
  2. Sustainably sourced renewable feedstock (biomass* or bio-based)
    The sustainability attribute ‘sustainably sourced renewable feedstock (biomass or bio-based)’ is intended for use with any chemical product that contains at least 20% biomass content by weight in the form of biomass-derived carbon. The biomass content shall originate from land that is certified sustainable.
  3. Recycled content
    The sustainability attribute ‘Recycled content’ is intended for use with any chemical product that contains at least 20% recycled content by weight. For the calculation of the recycled content only the dry content of the chemical product shall be regarded, excluding water.
More information:
bluesign chemicals Sustainability
Source:

Bluesign

09.08.2022

Huntsman announces Agreement to sell Textile Effects Division

Huntsman Corporation (NYSE: HUN) announced it has entered into a definitive agreement to sell its Textile Effects division to Archroma, a portfolio company of SK Capital Partners.  The total enterprise value of the transaction is approximately $718 million, which includes the assumption of approximately $125 million in net underfunded pension liabilities as of December 31, 2021. The acquisition is being partially funded with preferred equity, of which Huntsman is taking up to $80 million, an amount SK Capital Partners will seek to syndicate prior to the transaction closing.

Over the last twelve months ending June 30, 2022, the Textile Effects division reported sales of $772 million and adjusted EBITDA of $94 million. Huntsman anticipates cash taxes on the transaction of approximately $50 million. Huntsman intends to report Textile Effects as discontinued operations beginning in the third quarter of 2022. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in the first half of 2023.       

Peter Huntsman, Chairman, President, and CEO commented:

Huntsman Corporation (NYSE: HUN) announced it has entered into a definitive agreement to sell its Textile Effects division to Archroma, a portfolio company of SK Capital Partners.  The total enterprise value of the transaction is approximately $718 million, which includes the assumption of approximately $125 million in net underfunded pension liabilities as of December 31, 2021. The acquisition is being partially funded with preferred equity, of which Huntsman is taking up to $80 million, an amount SK Capital Partners will seek to syndicate prior to the transaction closing.

Over the last twelve months ending June 30, 2022, the Textile Effects division reported sales of $772 million and adjusted EBITDA of $94 million. Huntsman anticipates cash taxes on the transaction of approximately $50 million. Huntsman intends to report Textile Effects as discontinued operations beginning in the third quarter of 2022. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in the first half of 2023.       

Peter Huntsman, Chairman, President, and CEO commented:

"Over the past seven months, we have conducted a comprehensive strategic review of our Textile Effects division, including detailed discussions with a wide range of relevant parties. After evaluating several different options and thoroughly reviewing prospective offers for the business, our Board of Directors decided that SK Capital would be a better owner of the business over the long-term than Huntsman and that the value they offered was in the best interests of our shareholders. After closing, Textile Effects will combine with SK Capital's Archroma business to create a world leader in textile chemicals and dyes, with a leadership in sustainability and innovation.

"We expect the cash proceeds from this divestiture to be deployed in-line with our current balanced capital allocation program which includes strategic investments and acquisitions to further strengthen our core businesses as well as returning cash to shareholders through both our dividend and share repurchase program."

09.08.2022

Archroma to acquire the Textile Effects business of Huntsman Corporation

Archroma, a global leader in sustainable specialty chemicals and solutions and a portfolio company of U.S.-based private investment firm SK Capital Partners (“SK Capital”), announced it has entered into a definitive agreement to acquire the Textile Effects business (“Textile Effects”) from Huntsman Corporation. Closing of the transaction is subject to customary conditions and approvals and is expected to take place in the first half of 2023.

Since its formation in 2013, through a series of mergers & acquisitions, as well as internal investments in R&D, manufacturing and service capabilities, Archroma has been building a comprehensive portfolio of solutions to serve the emerging needs of the textile industry. The combination with Textile Effects and its rich historical roots of Huntsman and Ciba Specialties will create a technology powerhouse that will include Archroma’s legacy heritages of Sandoz, Hoechst, Clariant, BASF and Dohmen who have been at the cutting edge of the textile industry for decades, and together will continue to serve customers for years to come.

Archroma, a global leader in sustainable specialty chemicals and solutions and a portfolio company of U.S.-based private investment firm SK Capital Partners (“SK Capital”), announced it has entered into a definitive agreement to acquire the Textile Effects business (“Textile Effects”) from Huntsman Corporation. Closing of the transaction is subject to customary conditions and approvals and is expected to take place in the first half of 2023.

Since its formation in 2013, through a series of mergers & acquisitions, as well as internal investments in R&D, manufacturing and service capabilities, Archroma has been building a comprehensive portfolio of solutions to serve the emerging needs of the textile industry. The combination with Textile Effects and its rich historical roots of Huntsman and Ciba Specialties will create a technology powerhouse that will include Archroma’s legacy heritages of Sandoz, Hoechst, Clariant, BASF and Dohmen who have been at the cutting edge of the textile industry for decades, and together will continue to serve customers for years to come.

Both Archroma and Textile Effects are founding members of Sustainable Chemistry for the Textile Industry (SCTI), an alliance of leading chemical companies that strives to empower the textile and leather industries to apply sustainable, state-of-the-art chemistry solutions that protect factory workers, local communities, consumers and the environment.

Source:

Archroma

(c) Fraunhofer UMSICHT/Mike Henning
Prof. Christian Doetsch (l.) and Prof. Manfred Renner (r.)
09.08.2022

Fraunhofer UMSICHT: New institute directors

Prof. Manfred Renner and Prof. Christian Doetsch will take joint leadership of the Fraunhofer Institute for Environmental, Safety and Energy Technology UMSICHT from August 2022. As renowned scientists, they have most recently shaped the direction of the institute as heads of the Products division and Energy division respectively, and will now follow in the footsteps of Prof. Eckhard Weidner, who has entered retirement.

This is the first time in its history that Fraunhofer UMSICHT is led by two directors. Both institute directors began their professional careers at the institute and from August they will have a joint hand in its future.

Prof. Manfred Renner and Prof. Christian Doetsch will take joint leadership of the Fraunhofer Institute for Environmental, Safety and Energy Technology UMSICHT from August 2022. As renowned scientists, they have most recently shaped the direction of the institute as heads of the Products division and Energy division respectively, and will now follow in the footsteps of Prof. Eckhard Weidner, who has entered retirement.

This is the first time in its history that Fraunhofer UMSICHT is led by two directors. Both institute directors began their professional careers at the institute and from August they will have a joint hand in its future.

Prof. Manfred Renner holds a doctorate in mechanical engineering, specializing in process engineering and business development. Since 2006, he has held various roles at Fraunhofer UMSICHT, most recently heading up the Products division and overseeing its 126 employees and its budget of 14.8 million euros. He has set international standards through his award-winning research into a free of water tanning leather tanning process that uses compressed carbon dioxide. With the development of innovative aerogel-based insulation materials for building facades, he has made a significant contribution to environmentally friendly, circular applications in the construction industry and initiated a number of industrial projects. One of the notable technological breakthroughs made by his team was the development of a new type of fire-resistant glass, which can withstand even the most extreme heat. This won his development team the Joseph von Fraunhofer Prize in October 2020.

Alongside becoming institute director, Prof. Renner will also take over the leadership of the Fraunhofer Cluster of Excellence Circular Plastics Economy CCPE in August 2022. In this role, he will represent the Fraunhofer-Gesellschaft on a national and international level with regard to the transformation of industry and society to a circular economy. In addition, he will start his professorship in Responsible Process Engineering at the Faculty of Mechanical Engineering of the Ruhr-Universität Bochum. Over the course of his professorship, he will shape the systemic development of the circular economy at a corporate, regional and European level.

Prof. Christian Doetsch has worked in energy research for more than 25 years, spending most of this time at Fraunhofer UMSICHT. As head of the Energy division, he managed a team of around 145 employees and was responsible for a budget of approximately 10.4 million euros. His technological focal points are energy storage, Power-to-X technologies including hydrogen electrolysis and chemical conversion, catalysts, and energy system modeling and optimization. His overarching aim is the integration of renewable energies into a cross-sectoral, resilient energy system.

In 2015, Doetsch co-founded the award-winning start-up Volterion GmbH & Co. KG, which develops redox flow batteries. He attained high visibility on a global scale by redesigning stacks, one of the main components of redox flow batteries, an achievement for which he, his team and Volterion representatives were awarded the Joseph von Fraunhofer Prize in May 2021. The energy expert also acts as deputy spokesperson for the Fraunhofer Energy Alliance and task manager for the energy storage group at the International Energy Agency (IEA). He also co-founded the “Open District Hub e. V.,” an association that promotes the energy transition in the sector by means of energy systems integration.

Since January 2020, he has been Professor of Cross Energy Systems at the Faculty of Mechanical Engineering of the Ruhr-Universität Bochum. In this role, he conducts research into ecological evaluation and resilience of cross-sectoral energy systems.

Source:

Fraunhofer UMSICHT

09.08.2022

Carbios joined WhiteCycle to process and recycle plastic textile waste

  • An innovative European project to process and recycle plastic textile waste
  • A partnership to reach the objectives set by the European Union in reducing CO2 emissions by 2030
  • A unique consortium rallying 16 public and private European organizations working together for more circular economy

Carbios joined WhiteCycle, a project coordinated by Michelin, which was launched in July 2022. Its main goal is to develop a circular solution to convert complex[1] waste containing textile made of plastic into products with high added value. Co-funded by Horizon Europe, the European Union’s research and innovation program, this unprecedented public/private European partnership includes 16 organizations and will run for four years.
 

  • An innovative European project to process and recycle plastic textile waste
  • A partnership to reach the objectives set by the European Union in reducing CO2 emissions by 2030
  • A unique consortium rallying 16 public and private European organizations working together for more circular economy

Carbios joined WhiteCycle, a project coordinated by Michelin, which was launched in July 2022. Its main goal is to develop a circular solution to convert complex[1] waste containing textile made of plastic into products with high added value. Co-funded by Horizon Europe, the European Union’s research and innovation program, this unprecedented public/private European partnership includes 16 organizations and will run for four years.
 
WhiteCycle envisions that by 2030 the uptake and deployment of its circular solution will lead to the annual recycling of more than 2 million tons of the third most widely used plastic in the world, PET[2]. This project should prevent landfilling or incineration of more than 1.8 million tons of that plastic each year. Also, it should enable reduction of CO2 emissions by around 2 million tons.
 
Complex waste containing textile (PET) from end-of-life tyres, hoses and multilayer clothes are currently difficult to recycle, but could soon become recyclable thanks to the project outcomes. Raw material from PET plastic waste could go back into creation of high-performance products, through a circular and viable value chain.
 
Public and private European organizations are combining their scientific and industrial expertises:

  • industrial partners (Michelin, Mandals, KORDSA);
  • cross-sector partnership (Inditex)
  • waste management companies (Synergies TLC, ESTATO);
  • intelligent monitoring systems for sorting (IRIS);
  • biological recycling SME (Carbios);
  • product life cycle analysis company (IPOINT);
  • university, expert in FAIR data management (HVL);
  • universities, research and technology organizations (PPRIME – Université de Poitiers/CNRS, DITF, IFTH, ERASME);
  • industry cluster (Axelera);
  • project management consulting company (Dynergie).

 
The consortium will develop new processes required throughout the industrial value chain:

  • Innovative sorting technologies, to enable significant increase of the PET plastic content of complex waste streams in order to better process them;
  • A pre-treatment for recuperated PET plastic content, followed by a breakthrough recycling enzyme-based process to decompose it into pure monomers in a sustainable way;
  • Repolymerization of the recycled monomers into like new plastic;
  • Fabrication and quality verification of the new products made of recycled plastic materials

 
WhiteCycle has a global budget of nearly 9.6 million euros and receives European funding in the amount of nearly 7.1 million euros. The consortium’s partners are based in five countries (France, Spain, Germany, Norway and Turkey). Coordinated by Michelin, it has an effective governance system involving a steering committee, an advisory board and a technical support committee.

[1] Complex waste: multi materials waste (Rubber goods composites and multi-layer textile)
[2] PET: Polyethylene terephthalate

Source:

Carbios

09.08.2022

Suominen Corporation’s Half-Year Financial Report

April–June 2022 in brief:

  • Net sales increased by 4% and amounted to EUR 118.0 million (113.6)
  • Comparable EBITDA decreased to EUR 1.9 million (15.3)
  • Cash flow from operations was EUR 11.9 million (1.2)

January–June 2022 in brief:

April–June 2022 in brief:

  • Net sales increased by 4% and amounted to EUR 118.0 million (113.6)
  • Comparable EBITDA decreased to EUR 1.9 million (15.3)
  • Cash flow from operations was EUR 11.9 million (1.2)

January–June 2022 in brief:

  • Net sales were in line with the previous year and amounted to EUR 228.3 million (229.0)
  • Comparable EBITDA decreased to EUR 5.2 million (33.8)
  • Cash flow from operations was EUR 9.2 million (17.1)

Outlook for 2022 unchanged
Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2022 will decrease clearly from 2021. The war in Ukraine has increased the already significant cost inflation in raw materials, energy, and transportation. Also, while there has been progress in the normalization of the customer inventory levels in the US, it has been somewhat slower than expected. These factors will impact the full year result negatively even though we expect that the demand for our products will improve in the second half of the year. In 2021, Suominen’s comparable EBITDA was EUR 47.0 million.

See attached document for full report.

Source:

Suominen Corporation

08.08.2022

Mahlo at Febratex

Brazil hosts all industries needed for textile and garment production - from fiber to final production. This is why Mahlo, with its diverse solutions on straightening technology and process control, will exhibit at Febratex, held on August 23-26 in Blumenau.

"No matter what products they make, all producers have the same goals at the end of the day," says Area Sales Manager Miguel Lessel. "High-quality goods without distortion and optimized processes that combine quality and economy.

The automatic straightening system of the world market leader ensures thread-straight fabric in almost all applications. The modular system can be adapted to individual production conditions. To optimize the processes around the stenter frame, Mahlo offers various process control systems. These can be used, for example, to measure and control critical parameters such as dwell time, thread density or residual moisture. These systems not only help to improve the quality of the textiles, but also to save raw materials and reduce energy costs.

Brazil hosts all industries needed for textile and garment production - from fiber to final production. This is why Mahlo, with its diverse solutions on straightening technology and process control, will exhibit at Febratex, held on August 23-26 in Blumenau.

"No matter what products they make, all producers have the same goals at the end of the day," says Area Sales Manager Miguel Lessel. "High-quality goods without distortion and optimized processes that combine quality and economy.

The automatic straightening system of the world market leader ensures thread-straight fabric in almost all applications. The modular system can be adapted to individual production conditions. To optimize the processes around the stenter frame, Mahlo offers various process control systems. These can be used, for example, to measure and control critical parameters such as dwell time, thread density or residual moisture. These systems not only help to improve the quality of the textiles, but also to save raw materials and reduce energy costs.

Source:

Mahlo GmbH + Co. KG

04.08.2022

adidas with strong growth in Western markets in Q2

  • Currency-neutral sales up 4%, despite more than € 300 million negative impact from macroeconomic constraints
  • Markets representing more than 85% of the business grow 14% overall
  • Gross margin down 1.5pp to 50.3% reflecting significantly higher supply chain costs
  • Operating profit reaches € 392 million
  • Net income from continuing operations amounts to € 360 million
  • FY 2022 outlook reflects double-digit growth during the second half of the year

“Our Western markets continued to show strong momentum in the second quarter amid heightened macroeconomic uncertainty. With Asia-Pacific returning to growth, markets combined representing more than 85% of our business grew at a double-digit rate,” said adidas CEO Kasper Rorsted. “With sports back at center stage this summer, revenues in our strategic growth categories Football, Running and Outdoor all increased by double digits. However, the macroeconomic environment, particularly in China, remains challenging. The recovery in this market is – due to continued covid-19-related restrictions – slower than expected.

  • Currency-neutral sales up 4%, despite more than € 300 million negative impact from macroeconomic constraints
  • Markets representing more than 85% of the business grow 14% overall
  • Gross margin down 1.5pp to 50.3% reflecting significantly higher supply chain costs
  • Operating profit reaches € 392 million
  • Net income from continuing operations amounts to € 360 million
  • FY 2022 outlook reflects double-digit growth during the second half of the year

“Our Western markets continued to show strong momentum in the second quarter amid heightened macroeconomic uncertainty. With Asia-Pacific returning to growth, markets combined representing more than 85% of our business grew at a double-digit rate,” said adidas CEO Kasper Rorsted. “With sports back at center stage this summer, revenues in our strategic growth categories Football, Running and Outdoor all increased by double digits. However, the macroeconomic environment, particularly in China, remains challenging. The recovery in this market is – due to continued covid-19-related restrictions – slower than expected. And we have to take into account a potential slowdown in consumer spending in all other markets for the remainder of the year.”

Currency-neutral revenues increase 4% despite macroeconomic constraints
In the second quarter, currency-neutral revenues increased 4% as adidas continued to see strong momentum in Western markets. This growth was achieved despite continued challenges on both supply and demand. Supply chain constraints as a result of last year’s lockdowns in Vietnam reduced top-line growth by around € 200 million in Q2 2022. In addition, the company’s decision to suspend its operations in Russia reduced revenues by more than € 100 million during the quarter. Continued covid-19-related lockdowns in Greater China also weighed on the top-line development in Q2. From a channel perspective, the top-line increase was to a similar extent driven by the company’s own direct-to-consumer (DTC) activities as well as increases in wholesale. Within DTC, e-commerce, which now represents more than 20% of the company’s total business, showed double-digit growth reflecting strong product sell-through. From a category perspective, revenue development was strongest in the company’s strategic growth categories Football, Running and Outdoor, which all grew at strong double-digit rates. In euro terms, revenues grew 10% to € 5.596 billion in the second quarter (2021: € 5.077 billion).

Strong demand in Western markets
Revenue growth in the second quarter was driven by Western markets despite last year’s lockdowns in Vietnam still reducing sales, particularly in EMEA and North America, by
€ 200 million in total. In addition, the top-line development in EMEA was also impacted by the loss of revenue in Russia/CIS of more than € 100 million. Nevertheless, currency-neutral sales grew 7% in the region. Revenues in North America increased 21% during the quarter driven by growth of more than 20% in both DTC and wholesale. Revenues in Latin America increased 37%, while Asia-Pacific returned to growth. Currency-neutral revenues increased 3% in this market despite still being impacted by limited tourism activity in the region. In contrast, the company continued to face a challenging market environment in Greater China, mainly related to the continued broad-based covid-19-related restrictions. As a result, currency-neutral revenues in the market declined 35% during the three-months period, in line with previous expectations. Excluding Greater China, currency-neutral revenues in the company’s other markets combined grew 14% in Q2.

Operating profit of € 392 million reflects operating margin of 7.0%
The company’s gross margin declined 1.5 percentage points to 50.3% (2021: 51.8%). Significantly higher supply chain costs and a less favorable market mix due to the significant sales decline in Greater China weighed on the gross margin development. This could only be partly offset by a higher share of full price sales, first price increases and the benefits from currency fluctuations. Other operating expenses were up 19% to € 2.501 billion (2021: € 2.107 billion). As a percentage of sales, other operating expenses increased 3.2 percentage points to 44.7% (2021: 41.5%). Marketing and point-of-sale expenses grew 8% to € 663 million (2021: € 616 million). The company continued to prioritize investments into the launch of new products such as adidas’ new Sportswear collection, the next iteration of its successful Supernova running franchise and first drops related to the Gucci collaboration as well as campaigns around major events like ‘Run for the Oceans.’ As a percentage of sales, marketing and point-of-sale expenses were down 0.3 percentage points to 11.8% (2021: 12.1%). Operating overhead expenses increased by 23% to a level of € 1.838 billion (2021:
€ 1.492 billion). This increase was driven by adidas’ continuous investments into DTC, its digital capabilities and the company’s logistics infrastructure as well as by unfavorable currency fluctuations. As a percentage of sales, operating overhead expenses increased 3.5 percentage points to 32.8% (2021: 29.4%). The company’s operating profit reached a level of € 392 million (2021: € 543 million), resulting in an operating margin of 7.0% (2021: 10.7%).

Net income from continuing operations reaches € 360 million
The company’s net income from continuing operations slightly declined to € 360 million (2021: € 387 million). This result was supported by a one-time tax benefit of more than € 100 million due to the reversal of a prior year provision. Consequently, basic EPS from continuing operations reached € 1.88 (2021: € 1.93) during the quarter.

Currency-neutral revenues on prior year level in the first half of 2022
In the first half of 2022, currency-neutral revenues were flat versus the prior year period. In euro terms, revenues grew 5% to € 10.897 billion in the first six months of 2022 (2021:
€ 10.345 billion). The company’s gross margin declined 1.7 percentage points to 50.1% (2021: 51.8%) during the first half of the year. While price increases as well as positive exchange rate effects benefited the gross margin, these developments were more than offset by the less favorable market mix and significantly higher supply chain costs. Other operating expenses increased to € 4.759 billion (2021: € 4.154 billion) in the first half of the year and were up 3.5 percentage points to 43.7% (2021: 40.2%) as a percentage of sales. adidas generated an operating profit of € 828 million (2021: € 1.248 billion) during the first six months of the year, resulting in an operating margin of 7.6% (2021: 12.1%). Net income from continuing operations reached € 671 million, reflecting a decline of € 219 million compared to the prior year level (2021: € 890 million). Accordingly, basic earnings per share from continuing operations declined to € 3.47 (2021: € 4.52).

Average operating working capital as a percentage of sales slightly decreases
Inventories increased 35% to € 5.483 billion (2021: € 4.054 billion) at June 30, 2022 in anticipation of strong revenue growth during the second half of the year. Longer lead times as well as the challenging market environment in Greater China also contributed to the increase. On a currency-neutral basis, inventories were up 28%. Operating working capital increased 23% to € 5.191 billion (2021: € 4.213 billion). On a currency-neutral basis, operating working capital was up 14%. Average operating working capital as a percentage of sales decreased 0.4 percentage points to 21.0% (2021: 21.4%), reflecting an overproportional increase in accounts payable due to higher sourcing volumes and product costs.

Adjusted net borrowings at € 5.301 billion
Adjusted net borrowings amounted to € 5.301 billion at June 30, 2022, representing a year-over-year increase of € 2.155 billion (June 30, 2021: € 3.146 billion). This development was mainly due to the significant decrease in cash and cash equivalents.

FY 2022 outlook reflects double-digit growth during the second half of the year
On July 26, adidas adjusted its guidance for FY 2022 due to the slower-than-expected recovery in Greater China since the start of the third quarter resulting from continued widespread covid-19-related restrictions. adidas now expects currency-neutral revenues for the total company to grow at a mid- to high-single-digit rate in 2022 (previously: at the lower end of the 11% to 13% range), reflecting a double-digit decline in Greater China (previously: significant decline). While so far the company did not experience a meaningful slowdown in the sell-through of its products or significant cancellations of wholesale orders in any market other than Greater China, the adjusted guidance also accounts for a potential slowdown of consumer spending in those markets during the second half of the year as a result of the more challenging macroeconomic conditions. Therefore, growth in EMEA is now expected to be in the low teens (previously: mid-teens growth), while revenues in Asia-Pacific are projected to grow at a high-single-digit rate (previously: mid-teens growth). Despite the more conservative view on the development of consumer spending in the second half of the year, adidas has increased its forecasts for North America and Latin America reflecting the strong momentum the brand is enjoying in these markets. In North America, currency-neutral revenues are now expected to increase in the high teens. Sales in Latin America are projected to grow between 30% and 40% (both previously: mid- to high-teens growth).   

Due to the less favorable market mix and the impacts from initiatives to clear excess inventories in Greater China until the end of the year, gross margin is now expected to reach a level of around 49.0% (previously: around 50.7%) in 2022. Consequently, the company’s operating margin is now forecast to be around 7.0% (previously: around 9.4%) and net income from continuing operations is expected to reach a level of around € 1.3 billion (previously: at the lower end of the € 1.8 billion to € 1.9 billion range).

More information:
adidas financial year 2022
Source:

adidas