From the Sector

In the first partnership of its kind, AlphaTauri has joined with the governing body for world motorsport, the Fédération Internationale de l'Automobile (FIA), to become their official clothing partner.

Over this significant three-year partnership, AlphaTauri will equip all FIA staff with clothing and accessories, redefining how style and convenience intertwine with the world of motorsport. AlphaTauri will also be the official partner of the FIA Prize Giving Ceremony that is held once a year to honour the champions from every major branch of motorsports in a star-studded event. This strategic collaboration aligns two organisations that are deeply committed to innovation.

The partnership between FIA and AlphaTauri represents a fusion of automotive technology, high fashion, and the pursuit of excellence. It will transform the way FIA staff experience their roles while ensuring they maintain a distinctive and stylish presence.

Under adidas’ ambition to help athletes overcome high pressure moments in sport, it has teamed up with leading sport neuroscientists, neuro11, to understand the impact it has within a game of football, basketball, and golf during penalty shootouts, high-stake putts and must-make free-throws.

Working with Emiliano Martínez, Ludvig Åberg, Nneka Ogwumike, Rose Zhang, and Stina Blackstenius, as well as amateurs in the game, adidas and neuro11 delved into their minds to identify and analyse where pressure peaks, to help athletes across the globe to better understand it.

Understanding from this study that grassroots athletes and their elite counterparts experience similarly intense levels of pressure in the biggest sporting moments - but elite athletes were up to 40% more effective at managing pressure during these moments¹ - a toolbox of techniques has been developed, built from the specific findings, to assist next-gen athletes in managing and overcoming the feeling within their game.

Covering in-depth detail on what pressure looks like within each sport, how it has been proven to impact specific in-game moments, the brain zones that neuro11’s state-of-the-art brain technology measures and the main insights from each athlete’s training session, each report sets out to support all athletes in accessing the optimal zone - the brain state in which they perform at their best.

Rounded off with science-backed tips that reveal the optimal area of a goal to strike a penalty, how to use time to regain focus before netting a free throw, as well as the impact of dwell time on putting in golf – the guides are shaped around enhancing mental focus during some of the most pressured moments across sport.

1 Findings captured during athlete training sessions, as part of adidas SS24 Brand Campaign, in collaboration with neuro11 (November ’23- January ’24). Study carried out with Emiliano Martínez, Ludvig Åberg, Nneka Ogwumike, Rose Zhang, and Stina Blackstenius, in addition to 5 grassroot athletes.

• Revenues: 477.6 million euros (-6%)
• EBITDA before non-recurring items: 79.0 million euros (-15%)
• Net income: 32.6 million euros (-26%)
• Free cash flow before non-recurring items: 45.3 million euros
• Dividend: €0.36 per share

Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the consolidated financial statements for the fiscal year 2023. Audit procedures have been performed by the Statutory Auditors.

Currency changes between 2022 and 2023 mechanically decreased revenues and EBITDA before non-recurring items by 3.9 million euros (-3%) and 1.7 million euros (-8%) respectively in Q4, and by 11.2 million euros (-2%) and 4.8 million euros (-6%) respectively in the year, at actual exchange rates compared to like-for-like figures.

OUTLOOK
While the 2023 full-year results were affected by the adverse environment, they also attest to the substantial improvement in the fundamentals of the Group's business model, which will have a positive impact on 2024 results. Persistent macroeconomic and geopolitical uncertainties could nevertheless continue to weigh on investment decisions by the Group's customers.

While the most recent indicators seem to suggest that the situation is unlikely to deteriorate further, the timing and magnitude of a rebound in new system orders remain uncertain.

Outlook for 2024
To facilitate analysis, the accounts of Lectra excluding the Launchmetrics acquisition ("Lectra 2023 Scope") will be analysed separately from the Launchmetrics accounts in 2024.

The Group has based its 2024 objectives on the exchange rates in effect on December 29, 2023, in particular $1.10/€1. When converting 2023 results using the exchange rates retained for 2024, 2023 revenues are mechanically reduced by 4.7 million euros (to 472.9 million euros) and 2023 EBITDA before non-recurring items is reduced by 2.2 million euros (to 76.8 million euros). Thus, for the Lectra 2023 Scope, the comparisons between 2024 and 2023 printed below are based on constant exchange rates.

At this early stage of 2024, continuing low visibility regarding orders and revenues from new systems makes it impossible to predict the actual timing and scale of the future rebound in this area. On the other hand, visibility is high for recurring revenues, which accounted for 68% of total revenues in 2023 and will continue to grow in 2024.

In light of the above, Lectra has set as its objective for 2024, for the Lectra 2023 Scope, to achieve revenues in the range of 480 to 530 million euros (+2% to +12%) and EBITDA before non-recurring items in the range of 85 to 107 million euros (+10% to +40%).

The low end of the revenues range is based on the absence of a rebound in new systems orders, which would remain stable in 2024 relative to 2023, with a 6% decline in revenues from perpetual software licenses, equipment and accompanying software and non-recurring services, as the order backlog was lower on December 31, 2023 than a year before.

The high end of the revenues range reflects a gradual rebound in new systems orders, which at year-end 2024 would be back to year-end 2022 level.
 
In addition, Launchmetrics revenues (for the consolidation period from January 23 to December 31) are projected to be in the range of 42 to 46 million euros, with an EBITDA margin before non-recurring items of more than 15% (assuming an exchange rate of $1.10/€1).

In the fourth quarter of 2023 Italian textile machinery orders index, drawn up by the Economics Department of ACIMIT, the Association of Italian Textile Machinery Manufacturers, appears to be stationary compared to data recorded for the same period in 2022. In terms of absolute value, the index stood at 82.4 points (basis: 2015=100).

This is the result of an upswing in orders from foreign markets, counterbalanced by declining orders on the domestic front. While orders in Italy decreased at 18% rate, a 4% increase was observed abroad. The absolute value of the index on foreign markets amounted to 77.9 points, whereas it came in at 126.2 points domestically. Overall for the fourth quarter, the average order backlog yielded 3.7 months of assured production.

For the whole 2023 year, the index declined 25% overall compared to the 2022 average (absolute index of 82.4). On the home front however, the index dropped 24% (absolute index of 124.5), while slipping 25% abroad (absolute index of 78.4).
 
ACIMIT president Marco Salvadè commented: "The orders index for October – December 2023, as elaborated by our Economics Department, confirms an intake of orders that is still weak, with a negative trend in demand for machinery that is ongoing for the domestic market."

Nonetheless, the orders index abroad shows a slight increase. We estimate that the global geopolitical context is still a source of concern,” continued Salvadè, specifying that, “For the first nine months of 2023, Italian exports on major global markets (i.e. China, Turkey, India and the United States of America), confirm a widespread decline. However, some positive signs emerged in the fourth quarter of last year, as reflected by the latest orders index. For 2024 we expect a consolidation of this trend reversal."

Messe Frankfurt will extend its footprint in the Central Asian market by establishing seven brand events in Tashkent, Uzbekistan. The country’s strategic location as a crossroads of Europe and Asia positions it as a promising trade gateway and transportation hub, facilitating the economic development of neighbouring countries and access to the wider region. The company’s stronger presence in the market will promote business opportunities and foster the sustainable development of pillar industries, including cosmetics, textiles and clothing, automotive, logistics and transportation.

Uzbekistan has a promising consumer market with significant potential. It is the largest in Central Asia and is expected to increase due to population growth, rising incomes and the modernisation of economic and industry sectors.
 
The nation has actively sought to diversify its economy in recent years, undertaking reforms for greater entrepreneurial freedom and opening up to more international and regional cooperation. The country already exports precious metals, textiles and agricultural produce. It imports machinery, equipment, means of transportation, and vehicle components from foreign trading partners. Attracting overseas investment is also apparent through incentives such as tax benefits, reduced import duties and simplified procedures for overseas investors.
 
In addition, shifting global supply chains and trading patterns could also drive opportunities in the region. The nation benefits from its geographical location owing to its position between Asia and Europe, to which the Uzbek Government recognises the prospects of investing in infrastructure, such as transportation and logistics, to create an efficient transit hub. Against this backdrop, China acknowledges the importance of developing routes along the Belt and Road while Europe has expressed a readiness to support Uzbekistan’s efforts to diversify transport corridors.

Line-up of shows include:

• Automechanika Tashkent; Futuroad Expo Tashkent; and, Scalex Tashkent: 23 – 25 October 2024
• Heimtextil Uzbekistan; Texworld Tashkent; and, Apparel Sourcing Tashkent: 6 – 8 November 2024
• Beautyworld Central Asia: 21 – 23 November 2024

Many end-users now expect recycled materials to be in textile products they purchase – and this is driving innovation throughout the industry. However, there are still many technical and economic issues facing yarn and fabric producers using recycled resources. Members of the Swiss Textile Machinery Association offer some effective solutions to these challenges.

Synthetic recycled materials such as PET can usually be treated similarly to new yarn, but there are additional complexities where natural fibres like wool and cotton are involved. Today, there’s a trend towards mechanically recycled wool and cotton fibres.

Spinning recycled cotton
The use of mechanically recycled fibres in spinning brings specific quality considerations: they have higher levels of short fibres and neps – and may often be colored, particularly if post-consumer material is used. It’s also true that recycled yarns have limitations in terms of fineness. The Uster Statistics 2023 edition features an extended range of fibre data, supporting sustainability goals, including benchmarks for blends of virgin and recycled cotton.
In general, short fibres such as those in recycled material can easily be handled by rotor spinning machines. For ring spinning, the shorter the fibres, the more difficult it is to guide them through the drafting zone to integrate them into the yarn body. Still, for wider yarn counts and higher yarn quality, the focus is now shifting to ring spinning. The presence of short fibres is a challenge, but Rieter offers solutions to address this issue.

Knitting recycled wool
For recycling, wool fibres undergo mechanical procedures such as shredding, cutting, and re-spinning, influencing the quality and characteristics of the resulting yarn. These operations remove the natural scales and variations in fibre length of the wool, causing a decrease in the overall strength and durability of the recycled yarn. This makes the yarn more prone to breakage, especially under the tension exerted during knitting.

Adapting to process recycled materials often requires adjustments to existing machinery. Knitting machines must be equipped with positive yarn suppliers to control fibre tension. Steiger engages in continuous testing of new yarns on the market, to check their suitability for processing on knitting machines. For satisfactory quality, the challenges intensify, with natural yarns requiring careful consideration and adaptation in the knitting processes.

From fibres to nonwovens
Nonwovens technology was born partly from the idea of recycling to reduce manufacturing costs and to process textile waste and previously unusable materials into fabric structures. Nonwovens production lines, where fibre webs are bonded mechanically, thermally or chemically, can easily process almost all mechanically and chemically recycled fibres.

Autefa Solutions offers nonwovens lines from a single source, enabling products such as liners, wipes, wadding and insulation to be produced in a true closed loop. Fibres are often used up to four times for one product.

Recycling: total strategy
Great services, technology and machines from members of Swiss Textile Machinery support the efforts of the circular economy to process recycled fibres. The machines incorporate the know-how of several decades, with the innovative power and quality standards in production and materials.
Stäubli’s global ESG (environmental, social & governance) strategy defines KPIs in the context of energy consumption, machine longevity and the recycling capacity in production units worldwide, as well in terms of machinery recyclability. The machine recyclability of automatic drawing in machines, weaving systems and jacquard machines ranges from 96 to 99%.

Building upon an existing three-year relationship with Boys & Girls Clubs of America, adidas announced a formal two-year agreement with the nation's largest youth development organization as part of both parties’ efforts to spread the joy of sport to kids and teens in all communities across the nation. By coming together to help drive substantive, long-lasting impact, the partnership will serve as a reminder that through sport, we have the power to change lives.

Over the course of the two-year partnership, adidas will grant $1 million to Boys & Girls Clubs of America to allocate across Clubs representing majority under-resourced Black and Latinx communities in more than a dozen U.S. cities, including New York, Los Angeles and Atlanta. Participating Clubs will receive funding to provide kids and teens with sport, wellness, education and e-sports programming.

adidas will also contribute additional funds to Boys & Girls Clubs of America through optional round-up donations from consumers at adidas locations throughout the U.S. Through these round-up efforts over the course of the last three years, adidas has generated nearly $2 million in funding for Boys & Girls Clubs of America and expects this route to unlock additional possibilities for young people across the country.

adidas’ support for Boys & Girls Clubs of America is part of the brand’s promise to invest $120 million to empower Black and Latinx communities in the U.S. through 2025. Other investments under the Creating Lasting Change Now effort include Cultivate & B.L.O.O.M., now titled, adidas Community LAB, an accelerator program for social entrepreneurs of color, and sustained funding for S.E.E.D. (School for Experiential Education in Design), a strategic pipeline to welcome diverse talent into the brand and the design industry.

A major capacity expansion has been completed at AkzoNobel’s Powder Coatings site in Como, Italy, which will help secure supply to customers across Europe, Middle East and Africa (EMEA).

Four new manufacturing lines are now operational following the €21 million project – two of them dedicated to automotive primers and two to architectural coatings. New bonding equipment lines have also been added, ensuring that the products meet and exceed industry standards.

The extra capacity in Como has been installed in a renovated building where powder coatings were originally made – a sustainable reuse of an existing part of the site, which was established in 1992. The new lines also use recycled energy and are focused on meeting the highest standards in sustainable production, supporting the company’s ambition to reduce its carbon emissions by 50% by 2030.

AkzoNobel’s Como site is the company’s largest plant for producing powder coatings. It supplies products for market segments, such as home appliances, architecture, automotive, furniture and more.

In a judgment in December 2023, the Supreme People’s Court of the People’s Republic of China ruled in favor of Rieter in a legal dispute. The case concerned the infringement of a Rieter patent by a competitor’s draw frame. Rieter protects its innovations with patents and registered designs and consistently takes action against infringements of its intellectual property.

Rieter draw frames are known for their stable operation with high sliver quality and productivity. Scanning precision and autoleveling dynamics ensure outstanding sliver evenness and thus the production of high-quality yarns. Draw frames have also been the subject of a patent litigation by Rieter in China at various levels of jurisdiction. Rieter had sued a competitor for unauthorized use of its patented draw frame technology.

In the summer of 2022, the Shanghai Intellectual Property Court confirmed the patent infringement identified by Rieter and prohibited the accused competitor from continuing to use Rieter’s patented technology. The infringing party was also ordered to pay damages to Rieter.

The culpable competitor then appealed the decision of the Shanghai court to the Supreme People’s Court of the People’s Republic of China.

In December 2023, the Supreme Court of China in Beijing upheld the Shanghai decision, confirming that the patent had been infringed. As a result, Rieter’s competitor is prohibited from selling the infringing machine types and is required to pay the damages determined by the court.

This Supreme Court decision represents a major success for Rieter in defending its proprietary technologies in China. It is further proof that foreign companies can effectively defend their intellectual property in China.

As the technology leader in spinning machinery manufacturing, Rieter invests around 5% of its turnover annually in research and development. Rieter protects its innovative products with patents and registered designs and takes consistent action against infringements of industrial property rights.

Green Theme Technologies (GTT), creators of the PFAS-free and water-free EMPEL® textile finishing platform, delivers advanced performance and a long term sustainability solution to the Japanese market. Green Theme Technologies, Inc. (GTT) is a US-based textile innovation company with a global vision to increase performance and eliminate pollution.

EMPEL® is a solution for textile mills looking to provide clean, high-performance finishes, and GTT actively promotes this innovative technology to all relevant Japanese companies, including mills, manufacturers, and brands. YKK, the Japanese global leader in zipper manufacturing, has already adopted the EMPEL® technology into their manufacturing process and promotes the technology globally in their new DynaPel™ collection.

GTT’s activities in Japan are supported by the Japan External Trade Organization (JETRO), a government-related organization that works to promote mutual trade and investment between Japan and the rest of the world. GTT has been approved for JETRO’s Invest Japan Support Program, which allows GTT to leverage its resources to set up an office in Japan in the future and for J-Bridge Program to forge relationships with prospective Japanese partners.