From the Sector

At the subsidiaries of the German Mahlo GmbH + Co KG, two branch managers are celebrating anniversaries this year. Alan Lavore, CEO of Mahlo America Inc., has been with the machine builder for 25 years. Michel Bruni, CEO of Mahlo Italia, has been part of the Mahlo family for 40 years.

Bruni began his career at Mahlo in 1981 as a service technician in the French branch Mahlo Ouest. Just one year later, he moved to Mahlo Italia, where he was appointed branch manager in 1996. He still holds this position today. Bruni is also sales manager for the Benelux countries, the Maghreb countries and Madagascar. The Mahlo Italia CEO's recipe for success includes expertise paired with experience and passion. To remain loyal to a company for so many years also testifies to a special relationship. "Then as now, I work with a dynamic and committed team. We also have a very good relationship with the employees of the parent company in Germany," says Bruni.

The culture and integrity with which business is conducted in the family-owned company were among the reasons why Mahlo America Inc. CEO Alan Lavore has also been with Mahlo for 25 years. "I just love working with all the great people at Mahlo." Lavore joined Mahlo in 1996 as a territory sales manager and took over as CEO in 2005. During this time, he drove the company's expansion from a textile specialist to a supplier for various production sectors such as film, paper, coating and converting or nonwovens.

• Currency-neutral sales up 3%, despite € 600 million drag from external factors*
• Strong top-line momentum in EMEA, North America and Latin America with double-digit
• increase across these regions*
• DTC business growing at double-digit rate in EMEA, North America and Latin America*
• Gross margin at 50.1% as significantly higher full-price sales partly compensate
• negative currency impact and higher supply chain costs*
• Operating margin at 11.7% despite strong double-digit increase in marketing spend*
• Net income from continuing operations reaches € 479 million*
• Inventories down 23% currency-neutral*
• 2021 top- and bottom-line outlook confirmed*

“adidas performed well in an environment characterized by severe challenges on both the supply and demand side,” said adidas CEO Kasper Rorsted. “As a consequence of successful product launches we are experiencing strong top-line momentum in all markets that operate without major disruption. Double-digit growth in our direct-to-consumer businesses in EMEA, North America and Latin America is a testament to the strong consumer demand for our products. At the same time, we are navigating through the current world-wide supply chain constraints. Despite all challenges, we are on track to delivering a successful first year within our new strategic cycle.”
 

*See attached document for more information.

Montalvo, international specialist in web tension control, has hired Mr. Mike Cunningham as their new Europe Director of Sales and Service. Mr. Cunningham will oversee Montalvo’s European sales and service efforts, implementing Montalvo’s regional strategy, increasing and developing the sales service, and support for Montalvo across EMEA. Mr. Cunningham’s primary responsibilities include: developing and coordinating partnerships, forming new alliances with key players while bringing new innovations into the market, and leading both Montalvo’s direct sales, technical, and customer service teams, as well as their resellers and distributors.

Montalvo Chief Executive Officer Bryon Williams said, “This is very exciting for all of us here at Montalvo, as we are expanding our European foothold and market. Mike brings an exciting energy to the team and the market, with a unique perspective and customer focus to which our customers are already responding well. In addition, Mike is bringing new ideas and innovations to our growing business while expanding our reach and responsiveness in the EMEA region. We look forward to what the future holds.”

Mr. Cunningham has a background in product design and engineering and complex bespoke industrial solutions with a bias towards computing and networking solutions in the manufacturing industry. Mr. Cunningham holds an engineering degree from the prestigious Brunel University School in London.

International technology group ANDRITZ has received an order from Albaad Massuot Yitzhak Ltd. to supply a neXline wetlace hybrid line for their Dimona facilities, Israel. The line will produce a wide variety of pulp-based wet wipes and is scheduled for start-up during the third quarter 2023.

The state-of-the-art neXline wetlace hybrid is the perfect combination of inline drylaid and wetlaid web forming with hydroentanglement and drying, including quality control equipment and a Metris Industry 4.0 package. All components will be delivered by ANDRITZ and are designed to produce first-class fabrics, including biodegradable, carded-pulp and flushable/dispersible nonwovens for end uses as wipes.

Tobias Schäfer, Vice President Sales at ANDRITZ Nonwoven, comments: “Our innovative production line gives Albaad enormous flexibility in the production of wipes. In addition, the Metris digitalization package by ANDRITZ will provide Albaad with highly efficient and smart operation.”

Dan Mesika, CEO and President of Albaad, says: “We are dedicated to developing new products – such as eco-friendly, biodegradable wipes. As pioneering manufacturers of our Hydrofine® flushable wipes, we are committed to environmental sustainability. Thanks to the new ANDRITZ line, we will enlarge the product portfolio at our Dimona production site with innovative fabrics and high efficiency.

Gadi Choresh, President of the Nonwovens Division at Albaad, says: “Our knowledge and experience in drylaid and wetlaid technology, together with the state-of-the-art equipment supplied by ANDRITZ, will enable us to provide the market with natural-source nonwovens and the best answer to the market demand.”
 
Albaad is one of the world’s three largest wet wipe manufacturers and is committed to delivering excellent wipes for every need. The company runs world-leading production facilities on three continents, each equipped with the latest technologies. Albaad produces spunlace and flushable fabrics in its facilities as well as purchasing from other roll goods suppliers in order to support production of a wide variety of wipes.

Kornit Digital Ltd. announced the release of its Kornit Presto MAX system for sustainable on-demand production of apparel and other textile goods. The new system will make its live debut at Kornit Fashion Week Los Angeles + Industry 4.0 Event, which the company is hosting November 2-5 to showcase technology innovations, partnerships, and proven strategies driving the business case for sustainable, on-demand production of fashion and textile goods worldwide.

Kornit Presto MAX is the first digital print system to offer white printing on colored fabrics, enhancing decoration capabilities for dark colored fabrics more broadly. It is the only single-step solution for direct-to-fabric printing, delivering the highest quality and softest feel with brilliant whites and brighter neon colors. The system is ready to incorporate future iterations and evolutions of XDi technology—3D decorative applications to produce threadless embroidery, high-density, vinyl, screen transfer, and other innovative effects.

Kornit Presto MAX is compatible with natural fabrics, synthetics, and blends, and includes advanced algorithms for smart autonomous calibration, to deliver high-quality results with short cycle times and minimal manual interruptions or defects. The system was devised for compatibility with the KornitX global fulfillment ecosystem to enable anywhere, anytime production, supporting a true distributed production model that fulfills nearer the end consumer, eliminating time and logistical waste from the experience while empowering brands to ensure quality and consistency across all systems and production sites.

Kornit Presto MAX provides the cornerstone of a smart, efficient, sustainable EcoFactory that empowers producers to cover and integrate more parts of the process, from design to finished product, to decrease their carbon footprint, use minimum manpower, and generate less waste. This means eliminating excessive time, labor, and shipping throughout the value chain, enabling proximity production to meet the accelerated demands of a web-driven global marketplace—revealing new sales channels and clever business models to grow the business long-term.

• Polynova to gain market share for the GRAFE Group in the Swiss region from November The GRAFE Group, Blankenhain, has found a new sales representative for Switzerland in Polynova Group AG, Risch-Rotkreuz (Switzerland).

The partnership will be officially launched at Fakuma 2021. "Our new Swiss agency specialises in the distribution and production of high-quality technical plastic granulates and has been active on the market for more than 20 years. The company has a large customer base and the necessary technical expertise to advance our goals in this important market. This includes raising our profile, educating people about our product range and ultimately gaining market share," says Stefanie Theuerkauf, Sales Manager for the D-A-CH region. Polynova employs five sales staff and three in logistics, all of whom have a technical background. The company's own warehouse in Rothenburg also ensures the availability of the plastics.

"GRAFE fits perfectly into our product portfolio," says Thomas Weigl, co-owner and responsible for business development at the Swiss distribution company, whose employees recently underwent intensive training in Blankenhain. "Our customers come from the sports goods, housing technology, automotive supplier and medical technology sectors - there are many synergies with GRAFE." Weigl himself has extensive experience in the masterbatch sector and has worked for two companies in the industry - Sukano and Americhem - as managing director. "Swiss companies want Swiss contact persons. We speak the languages German, Italian and French, are on site in the shortest possible time, offer direct contact and understand the needs of the customers and the requirements of the market," he explains. "Polynova is thus faster, closer and more direct." "The Swiss market is large and important for us," reports Theuerkauf and Weigl explains the background: "There are over 300 plastics processors, many are family-run and very technically oriented. The origins of the companies are often in the watch industry and in the production of the smallest precision parts such as gear wheels. In addition, coffee machine manufacturers, medical technology providers and automotive suppliers are important market players. A large number of well-known OEMs are located here."

Even though there are already masterbatch manufacturers in the Alpine country, says the sales expert, no one has the know-how to adjust compounds and masterbatches as perfectly and precisely as the company from Thuringia. In addition to a complete range of colours on practically all plastic substrates, flame retardants, UV additives, thermal stabilisers or lubricants are further examples of the extensive product portfolio. GRAFE is one of the specialists in the modification of thermoplastics and is an innovation driver in the production of colour masterbatches. "The technical possibilities in terms of a state-of-the-art technical centre and production machinery, as well as one of the largest research and development departments in the industry, are also not to be found elsewhere on the Swiss market. Our task now is to bring these to the attention of domestic customers," says Thomas Weigl, co-owner of Polynova AG together with founder Renato R. Huebscher.

Hexcel has collaborated with HP Composites S.p.A (HP Composites), a world leader in the production of carbon fiber components for automotive and motorsports, to develop carbon fiber Class A body panels. Hexcel HexPly® XF surfacing technology is being extensively used by the Italian component producer to manufacture external body panels and other components for supercars such as Alfa Romeo’s stunning new supersport sedans, the Giulia GTA, and GTAm.

With five production plants in Italy, HP Composites has built an impressive track record of high-performance composite successes on both road and racetrack. HP has combined this processing expertise with Hexcel HexPly® XF3 surfacing material, HexPly® M47, and HexPly® M49 prepregs, working to the highest standards set by the most prestigious supercar OEMs and leading motorsport teams.

Hexcel’s automotive composites portfolio is the result of decades of industry experience and the creation of strategic partnerships to develop and optimize leading-edge technologies. HexPly XF3 is an epoxy prepreg surface material, developed with processing input from the HP Composites team to address the challenges of producing high-quality Class A automotive body panel surfaces with excellent resistance to aging tests.

Applied as the first ply in the mold and after curing at 120-180˚C in an autoclave, HexPly XF3 produces a smooth part surface with no porosity, that requires minimal preparation for painting.

HexPly XF3 is supplied in an easy-to-handle roll format with good tack and drapability. After curing, it can be easily prepared for painting with a rapid sanding process. HP Composites has incorporated automated robotic sanding techniques for this finishing stage with the paint-ready HexPly XF3 surface providing excellent paint adhesion according to EN ISO 2409.

HP Composites typically uses autoclave processing for HexPly XF3 parts, maximizing weight savings and structural performance of the final components. In addition, HP has also developed its own proprietary press and compression molding processes, including Air Press Moulding® technology, compatible with HexPly XF3 and other HexPly prepregs for higher volume production series that require increased production rates.

“Our long-term experience has given us a detailed understanding of the critical features that influence how prepregs and surfacing technologies interact with different production processes,” said Abramo Levato, General Manager, HP Composites S.p.A. “The relationship we have with Hexcel is both highly technical and highly supportive. As a result we have a complete material package for high-quality Class A body panels that are formulated specifically with our requirements in mind.”

“Combining the expertise of HP with a strong technical interaction and collaborative dialogue, Hexcel and HP were together able to develop the optimum HexPly XF surfacing technology,” said Claude Despierres, VP Sales and Marketing, Hexcel. “With HexPly XF3 we satisfy the toughest industry standards.”

• Asahi Kasei Corporation markets premium stretch fiber under the brand of ROICA™, with superior performance features enabled by integrated production from raw material to yarn based on its advanced technology.
• The specialized global holding operates its global ROICA™ business having production sites in Japan, Thailand, Taiwan, China, and Germany with strategic sales facilities around the world.

With deep regret, Asahi Kasei has taken the decision to restructure its production strategy in order to face the new, unexpected and critical market situation. As part of this process, the production and sales of ROICA™ at its German subsidiary, Asahi Kasei Spandex Europe GmbH in Dormagen, will be discontinued by March 31, 2022.
 
Recognizing the paramount importance of the European market, especially when it comes to smart innovation where ROICA™ is a leader, and with the goal of continuing the excellent longtime work with valued partners, customers and supply chains, Asahi Kasei will continue to develop sales, technical and marketing services in Europe through Asahi Kasei Europe, the European regional headquarters of the Asahi Kasei Group. It will especially focus on ROICA™ added value products manufactured at its ROICA™ production sites in Asia.
 
Through this process, Asahi Kasei will reshape the efficiency and productivity of its global ROICA™ operation by keeping a strong focus on responsible innovation and sustainability in close communication, and safeguarding its business partners.
 
As a manufacturer of superior quality, highly functional and sustainable ROICA™ products, Asahi Kasei will continue its journey of responsible innovation aiming to provide solutions to the textile industry and to contemporary consumers, by enhancing production capabilities and expertise at the global sites supported by an expert, wise and efficient company.

As part of Suominen Corporation’s Half-Year Financial Report for January 1 – June 30, 2021 the company shared their insights and actions defined in their sustainability agenda.
A new Code of Conduct was launched in the beginning of 2021 and a mandatory training program about the Code will be start in the third quarter of this year.

Suominen is committed to continuously improving their production efficiency and the efficient utilization of natural resources. What active measures towards reducing energy consumption, greenhouse gas emissions, water consumption and waste to landfill are concerned, the commitment is to diminish them by 20% per ton of product by 2025 compared to the base year of 2019.
Offering a comprehensive portfolio of sustainable nonwovens and continuously developing new and innovative solutions with a reduced environmental impact, the target is a 50% increase in sales of sustainable nonwovens by 2025 compared to 2019, and to have at least 10 sustainable product launches per year. During the first half of the year, nine sustainable product launches were made.

OUTLOOK FOR 2021
As announced on August 12, 2021 Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2021 will decrease from 2020 due to the slowdown in the demand for nonwovens in the second half of 2021 as well as some continuing volatility in the raw material and transportation markets. In 2020, Suominen’s comparable EBITDA was EUR 60.9 million.

• Transformation program and improving order situation show first successes
• Sales up 8.8% to €496.7 million compared with first half of previous year
• Adjusted EBITDA improves by 70.7% to €71.7 million
• Positive business development led to forecast increase on July 13, 2021

While the past fiscal year 2020 was still characterized by a Corona-related slump in orders in many business areas of SGL Carbon, demand picked up again in the first six months of 2021. Accordingly, Group sales increased by 8.8% to €496.7 million in H1 2021 (H1 2020: €456.5 million).

The Carbon Fibers and Composite Solutions Business Units particularly contributed to the €40.2 million increase in sales. Carbon Fibers contributed €166.4 million to Group sales, especially benefiting from increased demand from the automotive market segment. In the Composite Solutions Business Unit, the increase in sales of 52.4% to €60.2 million was also primarily based on the recovering demand from the automotive industry.

With sales of €221.2 million, the Graphite Solutions business area contributed around 44.5% of SGL Group sales. The 3.8% increase in the division's sales was particularly due to the positive development in the important markets of the LED, semiconductor and automotive industries.

Transformation program:
The restructuring and transformation process initiated at SGL Carbon made a significant contribution to the Company's positive sales and earnings performance. In addition to leaner and more efficient structures as well as a reorganization of the business units with responsibility for results, a large number of improvements and cost initiatives in all business units and sites have contributed to the success of the ongoing transformation program.

Forecast increase:
Due to pleasing business development in the first half of the year as well as transformation successes, SGL Carbon raised its forecast for fiscal year 2021 on July 13, 2021. For the financial year 2021, the company now expects consolidated sales of around €1.0 billion (previously: €920 - 970 million). In line with developments in the first half of 2021 and the results from the transformation, adjusted EBITDA for 2021 is expected to be between €130 - 140 million (previously: €100 - 120 million). Accordingly, a slightly positive net profit is now forecasted for fiscal year 2021 (previously: €-20 million to €0).