From the Sector

• Sales and recurring EBIT significantly decreased in first half of 2020

As expected, the second quarter of SGL Carbon was impacted by the Corona pandemic, but not to the extent predicted in May when the quarterly statement for the period ended March 31, 2020 was published. Sales in the three months as per end of June decreased approximately 23 percent year-on-year, whereas Group recurring EBIT was at around 2 million euros and thus higher than anticipated. In total, SGL Carbon reached Group sales of 457 million euros in the first half year. This corresponds to a decrease of around 19 percent year-on-year. The decline is due to a pandemic-related overall weaker business development as well as expected declining developments in the market segments Battery & other Energy (GMS) and Textile Fibers (CFM) due to capacity adjustments. Group recurring EBIT was down approximately 71 percent to 11 million euros.

At a glance*:

• Sales in the second quarter approximately 23 percent below prior-year period; Group recurring EBIT of around 2 million euros was slightly better than anticipated at the presentation of the results of the first quarter 2020
• Group sales in the first half year 2020 at almost 457 million euros and thus around 19 percent below the prior-year period; decrease in sales due to pandemic-related overall weaker business development as well as expected declining developments in the market segments Battery & other Energy (GMS) and Textile Fibers (CFM)
• Group recurring EBIT down approximately 71 percent to 11 million euros
• As a result of measures taken at an early stage and contrary to the normal seasonal trend, cash and cash equivalents at nearly 154 million euros as of June 30, 2020 developed very positively compared to the end of 2019
• According to the full year forecast published on July 28, 2020, SGL Carbon expects Group sales to decline by 15 to 20 percent and a slightly positive operating recurring EBIT
• Dr. Torsten Derr, CEO of SGL Carbon: "My ambition is to achieve lasting success with SGL Carbon. Over the past two months, we have been conducting a comprehensive analysis of our processes, structures and markets. Based on this, we will identify the options that will enable us to sustainably increase our profitability. The Corona pandemic is forcing us to act even faster."

*Please read the attached document for more information

Archroma, a global leader in color and specialty chemicals towards sustainable solutions, has joined hands with Liberty Textile Mill Limited (Liberty), a leading producer in healthcare textiles to produce high quality personal protective equipment (PPE).

Liberty will be benefitting from Archroma’s specialty solutions for hygiene protection, and well-established technical expertise in the area of medical textiles. Amidst the COVID-19 pandemic, the PPEs manufactured by Liberty are aimed at easing the current shortage of PPEs for medical professionals in Pakistan.

Liberty carries over two decades of experience in medical textiles and exporting them all over the world. Its partnering with Archroma is a major step forward towards creating enhanced protection in the current crisis. With its advanced scientific knowledge and technical expertise, Archroma provides a complete set of specialty chemicals required to produce PPEs, in particular in the area of antimicrobial and barrier coatings. The project will assist in enhancing medical standards in hospitals, isolation centers and intensive care units, in Pakistan and, very soon, worldwide.

“By continuously challenging the status quo, we at Archroma are able to support our customers operating in or entering the area of medical textiles, with a holistic and expert approach to hygiene protection. With our collaboration with Liberty, we are so proud to be able to bring state-of-the art protection to health professionals and the general public,” comments Mujtaba Rahim, CEO of Archroma Pakistan.

“Liberty has a presence of more than five decades with high achieving accolades. Our processing units are fully equipped with latest equipment complying with international standards. We take this new partnership with Archroma as a start of building a strong relationship in the area of medical textiles. The COVID-19 pandemic has given a wake-up call to work extensively towards enhancing healthcare facilities. We are looking forward to new innovations in producing top-class PPEs,” adds Taimoor Mukaty, Director of Liberty Textile Mills Limited.

The coronavirus pandemic and its massive impact on the automotive industry led to an un-precedented market slump in the first half of 2020 and a corresponding revenue decline at Autoneum. Revenue in local currencies fell by –32.7% compared to the prior-year period, and in Swiss francs by –36.8% to CHF 730.6 million. The turnaround program for the North American sites made further progress in the first six months and is showing the targeted results. However, they were clearly overcompensated by the massive impact of the corona-virus crisis, which led to a negative net result of CHF –54.9 million despite comprehensive cost flexibilization measures.

Like the entire automobile industry, Autoneum was massively impacted by the effects of the corona-virus pandemic in the first half of the year. The temporary plant closures at almost all customers in every region, especially in the second quarter of the year, not only led to an unprecedented market collapse, but also to a production stop at all 55 Autoneum sites. Starting in February in China and one month later in all other regions, vehicle manufacturers temporarily shut down production completely. The corresponding massive drop in global vehicle production led to a slump in revenue at Autoneum of –32.7% in local currencies. This reflects the development of the market in the first half of 2020, which contracted by –33.2% year-on-year. Revenue in Swiss francs at Autoneum fell by –36.8% to CHF 730.6 million (prior-year period: CHF 1 156.1 million). Revenue development in all Business Groups outperformed the respective markets, particularly in Asia and the SAMEA (South America, Middle East and Africa) region.

 Like the entire automobile industry, Autoneum was massively impacted by the effects of the corona-virus pandemic in the first half of the year. The temporary plant closures at almost all customers in every region, especially in the second quarter of the year, not only led to an unprecedented market collapse, but also to a production stop at all 55 Autoneum sites. Starting in February in China and one month later in all other regions, vehicle manufacturers temporarily shut down production com-pletely. The corresponding massive drop in global vehicle production led to a slump in revenue at Autoneum of –32.7% in local currencies. This reflects the development of the market in the first half of 2020, which contracted by –33.2% year-on-year. Revenue in Swiss francs at Autoneum fell by –36.8% to CHF 730.6 million (prior-year period: CHF 1 156.1 million). Revenue development in all Business Groups outperformed the respective markets, particularly in Asia and the SAMEA (South America, Middle East and Africa) region.

Autoneum promptly responded to the pandemic-related market slump by adopting extensive cost-cutting measures in all regions. These include the reduction of employee costs by, among other things, adjusting time accounts, introducing short-time work at eligible locations and temporary layoffs as well as headcount reduction, mainly among temporary workers. In addition, operating expenditures were limited to the absolutely necessary. The investment volume for 2020, already reduced from previous years, was downsized even further. Autoneum continues to benefit in this regard from the high level of investments undertaken in recent years.

 Although the coronavirus crisis and the measures taken to contain it dominated Autoneum’s course of business in the first half of 2020, the Company achieved necessary operational and financial im-provements during this period. The comprehensive turnaround program for the North American sites made further progress and is on track. Efficiency improvements already achieved there had a posi-tive effect on the figures of the first half-year, but were significantly overcompensated by the substan-tial impact of the COVID-19 crisis. Savings and cost flexibilization measures taken immediately and implemented worldwide in view of the revenue loss could not offset the ongoing, capacity-related fixed costs. This led at the Group level to a negative EBIT of CHF –31.8 million (prior-year period: CHF 16.4 million), which equates to an EBIT margin of –4.4% (prior-year period: 1.4%). The net result decreased because of the severe revenue shortfall to CHF –54.9 million (prior-year period: CHF –6.0 million).

Outlook
For 2020 Autoneum expects revenue to develop at market level. Although customers’ production volumes should increase again in the second half of 2020 compared with the first semester, latest fore-casts indicate that they will remain clearly below the level of the second half of 2019. Immediately implemented and ongoing cost reduction measures as well as further operational optimizations also within the turnaround program in North America will lead to improvements in the second half of the year. Due to the current uncertainties, a reliable statement on the net result for the full year 2020 thus cannot be made. With regard to the mid-term targets, a recovery of the profitability level is expected, but it will largely depend on the market development.

• Si-Quat by AFFIX Labs is a versatile anti-viral surface treatment that has been scientifically proven to last for months on any surface or textile while effectively killing the COVID-19 pathogen upon contact.
   

Helsinki - Leading chemical binding expert AFFIX Labs has harnessed its global experience in disease prevention to create the first long-lasting surface treatment proven to kill COVID-19. Si-Quat combines a safe and well-established disinfectant and a proprietary chemical binding technique, so that the active ingredient can kill viruses, including SARS-COV-2. Testing at Portugal’s Biochemistry Institute at the University of Lisbon proves that Si-Quat effectively kills the COVID-19 pathogens that it comes into contact with.

“Tragedies have unfolded across the globe, affecting different countries at varying degrees. The second waves of COVID-19 are just appearing on the horizon. This long-lasting surface treatment is a viable, accessible solution across cultures. By killing the COVID-19 pathogen on surfaces before it can infect people, the Si-Quat solution is a game changer. It can provide increased security and peace of mind to your communities, as well as your customers,” says Tom Sam, CEO of AFFIX Labs.

Si-Quat has been tested to kill 99.99% of microbes within minutes, while still being fully safe to touch. Proven to be effective for about a month on frequently touched surfaces, it is the longest lasting anti-viral surface treatment available to reduce the spread of the novel coronavirus. The product is non-corrosive, free from silver salts and heavy metal nanoparticles, and perfectly safe to touch.

Several major agencies around the globe have already accepted quaternary ammonium, the main ingredient in the surface coating, to be an effective surface treatment against the novel coronavirus, including the World Health Organization (WHO), the US Environmental Protection Agency, the American Chemistry Council (ACC) and the European Chemical Agency (ECHA).

Si-Quat was invented in January 2020 by the AFFIX Labs’ Repeltec development team to specifically help combat the COVID-19 outbreak. The product is based on the trusted and safe disinfectant quaternary ammonium, which is chemically bound to align silane quaternary ammonium molecules (silane quats) in a highly effective manner. Positively charged nitrogen particles then actively attract viruses and bacteria, penetrating the membranes and killing them within minutes.

Rigorous testing has shown Si-Quat to adhere to almost any surface, performing as the most durable surface treatment commercially available. Due to its incredibly strong layer, the solution only wears down on surfaces after thousands of touches or multiple cleaning cycles. This means that on heavily used surfaces, such as door handles and counters, Si-Quat will be effective for about a month. On rarely touched surfaces like walls, it has the potential to protect for years. Since the product is incredibly easy to apply, technicians require minimal training and only basic protection. They simply have to brush or spray Si-Quat onto the surface and allow it to dry for 6 hours.

“Other sanitising solutions require reapplication to every surface several times daily, interrupting business operations. This results in additional costs and disruptions at a time when many companies are already struggling,” Sam explains. “By combining proven efficacy, safety and long durability, Si-Quat is emerging as an important weapon in the battle against the spread of COVID-19.”

AFFIX Labs has begun to roll out the distribution of Si-Quat across the globe, with new regions being serviced every week. It is currently looking for distribution partners in local markets.

The project leading to the development of Si-Quat included funding from the European Institute of Innovation and Technology, a body of the European Union, under the Horizon 2020 Framework for Research and Innovation.

As part of its active engagement in the fight against COVID-19, Archroma, a global leader in color and specialty chemicals towards sustainable solutions, started bulk production of a new range of hand sanitizers at its Landhi site in Pakistan in May 2020. The new Kieralon® HS range was developed by the R&D team at the Archroma Center of Excellence in Karachi, in line with the World Health Organization (WHO) recommendations.

Sanitizers are currently in high demand in Pakistan in hospitals, isolation centers, medical institutes and other health care environments, due to the COVID-19 outbreak. The use of sanitizers has also been made mandatory in all factories, offices and public places, driving the demand even higher.

The Kieralon® HS range is being produced in different grades and concentrations to eliminate a broad range of germs, bacteria and viruses, to cater for various healthcare and hygiene requirements. They also include emollients and display non-stick and quick drying effect, for skin comfort.

In April 2020, Archroma announced the introduction in Brazil of Mowiplus® HPC 9600, a new thickener for sanitizing gels, developed to address the global shortage in the thickener traditionally used for sanitizing gels.

Archroma is also actively supporting manufacturers in the production of face masks and medical protective equipment. Its antimicrobial and barrier products in particular are in high demand, and Archroma is making every effort to assist existing and new customers entering this sector by providing technical know-how and support.

The company is supporting producers of packaging & paper who are facing high demand for food packaging as many restaurants have switched to delivery or take-away, as well as for parcels and boxes supporting online shopping.

Mujtaba Rahim, CEO of Archroma Pakistan comments, “Within Archroma we are cognizant of the acute community need for high quality hygiene products that are also comfortable for users, as hand sanitizers tend to be harsh on the skin, so we took on the challenge to develop and start production in record time. The Archroma team in Pakistan won’t rest in fighting the COVID-19 pandemic, and hopes this new product will help to stop the spread of the virus and the suffering that it causes.”

• R&D support for textile odor-management according to international testing standards

To ensure responsible use of biocides and international comparability, test methods and test results for antimicrobial treated products must be transparent, useful and comparable. This is precisely why  SANITIZED AG, the specialist for antimicrobial material protection and hygiene function in textiles and polymers, had its in-house Microbiology Laboratory in the SANITIZED TecCenter certified by IAC, the International Antimicrobial Council. This non-profit, U.S.-based institute aims to increase safety for antimicrobial treated products and for consumers. Textile and polymer product manufacturers value the assistance that the in-house SANITIZED TecCenter provides them with developing and optimizing their products. It supervises technical application aspects, and conducts microbiological tests and analytics—all from a single source. SANITIZED provides specific assistance with the textile manufacturer's R&D work, particularly for the demanding challenge of developing the best possible odor-management for textiles. Now the TecCenter has been certified by the IAC and is a designated “International Antimicrobial Council Certified Laboratory.”

Thanks to the IAC Certification, SANITIZED AG now offers innovation expertise according to international standards that are also recognized and valued in the U.S. and Asia.

“In addition to assistance with product development and product optimization from our TecCenter, SANITIZED customers receive certification of the antimicrobial treatment of their products from an independent organization, the IAC,” explains Erich Rohrbach, Head of Microbiology at SANITIZED AG. “This is an important building block for production chain transparency in the textile industry, which is demanded by a growing number of manufacturers and brands that are driven by end customer requirements,” adds Erich Rohrbach. Many SANITIZED customers particularly value the TecCenter for their development work in odor-management for textiles. SANITIZED offers an innovative product portfolio to meet this demand also including non-biocide additives.

• 10% of their offer is eco-responsible.
• Sustainable cotton is a priority for retailers for the coming years.
• Sustainable garments cheaper than standard garments.

Brands are prepared for the new health protection rules and have reopened their stores. But aside from the direct impact of the COVID-19 epidemic, is the fashion market ready to respond to customers’ desire to act by changing their spending habits?

Based on analyses by Retviews, a recently acquired startup, Lectra has produced a survey of sustainable fashion among the leading fast fashion brands*.

The COVID-19 crisis has given many people the desire to live more meaningfully and to act more responsibly. The crisis period could be seen as the catalyst that forces the fashion industry to change the way it designs, produces and distributes its products. Since, for consumers, buying is a way of expressing a commitment and affirming their values, brands have an incentive to change their offer in preparation for the future, by taking a more eco-responsible, authentic and transparent approach.

While these factors were apparent before the pandemic, they have now become the key to interacting with consumers wanting a more responsible offer. The era of the consumer activist, long heralded without actually becoming a reality, is now here, and brands must adapt in response.

*Please read the attached document for more information

• HeiQ Viroblock by CHT provides effective antiviral treatment on different fabrics
• No infective viruses left after 30 minutes
• For a wide range of protective textile applications

CHT is cooperating with HeiQ by implementing the HeiQ Viroblock by CHT in the textile industry, globally. HeiQ Viroblock by CHT is among the first textile technologies in the world to be proven effective against SARS-CoV-2 in the laboratory.

HeiQ Viroblock by CHT is a textile treatment for industrial use, designed to provide textiles with antiviral and antibacterial properties. The combination of silver antimicrobial technology and vesicle technology rapidly destroy enveloped viruses including coronaviruses. It has previously been tested against coronavirus 229E, another strain of virus in the Coronavirus family.

The latest testing with SARS-CoV-2 virus was conducted by researchers at the Doherty Institute, a joint venture between the University of Melbourne and The Royal Melbourne Hospital, an internationally renowned institution combining research, teaching, public health and reference laboratory services, diagnostic services and clinical care into infectious diseases and immunity. The research project involved a disinfection test protocol that simulated the real-life interaction of small aerosol droplets contaminating clothing. A known concentration of SARS-CoV-2 virus was contacted with the sample fabric for 30 minutes followed by measurement of remaining infectious SARS-CoV-2 viruses. The fabric sample treated with HeiQ Viroblock by CHT had no infective viruses left after 30 minutes. The result indicated a SARS-CoV-2 virus reduction of 99.99% relative to the inoculum control.

Masks yes, but with comfort, safety and also style: Cifra, Iluna Group, Rosti and Sitip launch masks with a fashion touch with the premium stretch fiber ROICA™
 
Big companies are updating their productions with high-performance and high technical characteristics masks, result of their historical experience and thanks to an exceptional partner in common: the premium stretch fiber ROICA™ by Asahi Kasei. And the solidarity race continues to donate them to hospitals and to the Red Cross
 
Forced to keep most of the face covered and often for a long time during the day, solutions that are above all performing and comfortable become increasingly necessary.

And solutions that are also a manifestation of our personality, which remains hidden and entrusted to the mere expression of the eyes. Walking on the streets we sometimes even don’t even recognize each other, since we are so hidden; and the desire to minimize the situation often takes over, together with that desire to make us recognizable, to possess and express an identity anyway. For fans of escaping homologation (now more than ever mandatory and for this reason even more difficult) “rescue comes” - and this is the case to say it - from illuminated companies who have thought about creative solutions for those with masks has to do all day, at home, at work, during sports and in leisure time. To feel more comfortable, there are many proposals: more “street style” for sports addicted and young people - inside and outside -, more elegant and sophisticated for women.

Textiles companies have joined the fight against Covid-19 engaging a strong and decisive personal and productive battle, which has seen many of them transform and convert their production units for the production of masks and gowns intended for medical personnel and the community.

Some of the most established excellences of the textile sector as Cifra, Iluna Group, Rosti and Sitip have made use of the precious collaboration of ROICA™, the premium stretch fiber by Asahi Kasei. ROICA™ is the innovative and smart premium ingredient chosen by these companies to guarantee even more comfort, thanks to an exceptional top-level component that gives elasticity for perfect adherence to the skin. Each of the companies then declined its production according to its specificity. And this is their important contribution.

Cifra presents the eco-sustainable version of the mask, the ECO-MASK™, which combines the high performance of Cifra knitting technology with the sustainability of the materials used. The 100% regenerated yarns create a 100% sustainable mask with 83% ECONYL and 17% ROICA™ V550 elastomer, the stretch fiber certified Cradle to Cradle Gold Health Level which allows excellent and lasting printability, as well as advantages regarding the circular economy as it does not release harmful substances into the test environment according to the Hohenstein Environmental Compatibility certification.

Iluna Group, European leader in the production of lace, has recently donated 400 protective “smart”  made with ROICA™ EF, the world first GRS - Global Recycled Standard – certified elastomer and which uses 58% of pre-consumer recycled content, mixed with Q-NOVA® by Fulgar. Multi-use, washable, bacteriostatic, breathable and water-repellent prevention masks gave to San Gerardo Hospital in Monza to answer to the Call to action launched on March 19th by the green journalist Diana De Marsanich, with the responsible and innovative materials expert Giusy Bettoni of C.L.A.S.S. Eco Hub, the fashion designer Marina Spadafora of Fashion Revolution Italia and the entrepreneur Simona Roveda of LifeGate. Iluna Group also announces the launch of the website dedicated to the direct sale of the different kind of masks all made with three layers, antibacterial and anti-drip treatment and washable up to 10 times. Iluna Group has also created the “smart” masks made with ROICA™ EF, the world first GRS - Global Recycled Standard – certified elastomer and which uses 58% of pre-consumer recycled content, mixed with Q-NOVA® by Fulgar.

In addition to the “smart” masks, available for women, men and children, Iluna Group has created two special versions of Lace Masks, covered with refined lace. One embroidered on a cotton base and one with soft microfiber.

Rosti, historic knitwear factory based in Brembate specialized in the design and production of cycling clothing with the best technical fabrics and the most advanced technologies, has put its experience at the service of the production of protective masks washable up to 20 times, made with Sitip fabric and with the anti-drop treatment Ecoacquazero®. Fascinating and protective like a second skin, the masks are sold in a pack of 10 pieces with captivating, colorful, geometric and original graphics, designed for every personality.

Rosti masks contain the premium stretch fiber ROICA™ Resistance, a family of premium stretch yarn with particular performances of resistance and durability.

ITM International Textile Machinery Exhibition and HIGHTEX International Technical Textiles and Nonwoven Exhibition, held every two years in partnership with Tüyap Tüm Fuarcılık Inc. and Teknik Fuarcılık Inc., and in cooperation with TEMSAD, were planned to be held between June 2-6 this year. However, as effects of Corona virus (Covid-19) continue to increasingly impact all the world, ITM and HIGHTEX exhibitions had been postponed to 14-18 July 2020, but it has been announced that the events have been rescheduled to 22-26 June 2021. 

Exhibitions Preparation Continue
Preparations for ITM and HIGHTEX 2021 Exhibitions continue at full steam to bring together hundreds of manufacturers and global investors who develop leading technologies in their fields. The latest technologies and new products to be displayed at ITM and HIGHTEX Exhibitions, which will open their doors in Istanbul Tuyap Fair Convention and Congress Center next year, will meet with textile investors from all over the world.
 
ITM 2018, where textile machinery leaders exhibited their latest technological products, turned into a trade show with global launches and hosted one of the largest meetings in the world, with 1150 exhibitors from 64 countries and 58.942 visitors (14.248 of them foreigners) from 94 countries.