From the Sector

Within the context of a globally-networked textile industry, online services have become essential for maintenance, modernization and original parts procurement processes for machines and systems.
Here, the Oerlikon Manmade Fibers segment optimized the myOerlikon.com service portal for the products and services of its Oerlikon Barmag, Oerlikon Neumag and Oerlikon Nonwoven brands, making it more userfriendly. It allows customers to now access tailored services in nine different languages and around the clock.

Each and every machine park usually has numerous associated documents, ranging from manuals, circuit diagrams and 3D drawing-supported original parts catalogs, all the way through to operating instructions and final documents. myOerlikon.com bundles this information, while also providing users with additional communications on potential machine modernizations and upgrades and on special offers tailored to the respective production system.

Real security during virtual shopping
At the same time, users can access the myOerlikon.com e-commerce platform, which operates in parallel.
Customers can not only place orders here, they can also send online inquiries to Oerlikon, view prices and warehouse stocks and track inquiries,
quotations and orders already made or placed, among many other things. As a result of online access to original parts catalogs for the respective customer machines and systems, erroneous orders can be avoided.
Log-in is secure for users, as are all transactions carried out using the platform. With this, Oerlikon is implementing real security for all virtual purchases. All data exchanged is fundamentally
encrypted and hence protected against unauthorized access.

We are now facing this challenge here in Bremen on the occasion of our 35th International Cotton Conference, which was to take place from 25 to 27 March. The coronavirus has been keeping the world on tenterhooks for some weeks now and, as you may have heard in the news, has also arrived in Germany and Bremen. As the organiser of an international conference, we have been forced to make a decision and it was by no means easy for us.
Due to the prevailing global threat from Covid-19, we will postpone the 35th International Cotton Conference Bremen for one year.
The World Health Authority (WHO), as well as the European and German health authorities are advising of significant health risks from transmission of the coronavirus. According to the Federal Foreign Office, data on the new virus is currently still limited, which makes risk assessment even more difficult.

In total, participants from more than 40 nations travel to Bremen for the Cotton Conference. In addition to the main conference, there are numerous side events. Many of our guests and conference participants are currently unsettled by the many negative reports. In the context of their responsibility, the organisers, the Bremen Cotton Exchange and the Fibre Institute Bremen, take the risks and concerns of all participants extremely seriously and would like to ensure planning reliability given the situation.

The 35th International Cotton Conference Bremen with the motto “Passion for Cotton” will now take place from 17 to 19 March 2021.

Within the framework of the preparations for the Group annual financial statements and based on preliminary results, SGL Carbon confirms its guidance for 2019 as revised in October 2019. Accordingly, the Company continues to expect Group sales between €1.05 and €1.1 billion and Group EBIT before extraordinary items between €45 and 50 million. In addition, net financial debt as of December 31, 2019 has also developed as expected, increasing by a mid double digit million € amount and thus remaining below the €300 million mark.

SGL Carbon also confirms the initial outlook for 2020 as presented in October 2019. Group sales is anticipated slightly below the 2019 level and Group EBIT before extraordinary items 10-15% below the 2019 level. To reflect the lower earnings expectations and within the context of a conservative free cash flow management, the Company will restrict capital expenditures to €70-80 million in 2020 (previous guidance: approximately €100 million) and thus approximately on the level of depreciation.

As usual, SGL Carbon will communicate further details on the guidance for 2020, particularly relating to the guidance on the level of the reporting segments, with the publication of the annual report 2019 on March 12, 2020.

The Company will also publish statements on the new mid-term plan on this date.

Monforts Textilmaschinen GmbH & Co. KG will be providing information on its extensive range of coating and finishing technologies for the production of nonwovens and technical textiles at the forthcoming Techtextil India exhibition.

“India is already a very important market for Monforts and there are exciting prospects ahead for Indian manufacturers of technical textiles, who are well positioned to capitalise on growth opportunities,” says Monforts Head of Denim Hans Wroblowski, who will be at the Monforts stand in Hall 4, booth C52 at the show. “India has one of the largest working-age populations in the world and a complete textile value chain for both natural and synthetic fibres.”

In addition, he adds, India’s government, through its Ministry of Textiles, has been actively promoting the growth of technical textiles through various programmes based on investment promotion, subsidies, the creation of infrastructure and the stimulation of consumption.

As a result, India’s Ministry of Textiles is forecasting that the growth of technical textiles in the country will be over 18% annually in the next few years, from a value of US$16.6 billion in 2018 to US$28.7 billion in 2021.

Value addition

High value-added technical products such as wide-width digital printing substrates, carbon fabrics for high-performance composites, filter media, flame retardant barrier fabrics and heavy-duty membranes are now being coated on Monforts texCoat ranges and finished with the company’s industry-leading Montex stenters.

“Since we acquired the technology that our coating units are based on in 2015, we have made a lot of refinements,” says Hans. “All of these developments are reflected in higher coating accuracy and the resulting quality of the treated fabrics. At the same time, our latest multi-functional coating heads offer an unprecedented range of options, with a wide range of modules available.”

The texCoat user interface is now equipped with the unique Monforts visualisation system and the magnetic doctor blade has greater power reserves. Options include a carbon fibre-reinforced composite coating drum with a more scratch-resistant surface and maximum rigidity and remote control which simplifies exact adjustment for the operator.

Montex stenters in special executions are meanwhile ideal for the drying and finishing of both technical woven fabrics and nonwovens and characterised by high stretching devices in both length and width.

“The European-built Montex range of stenters has earned its leading position in the technical textiles market due to the overall robustness, reliability and economy of these machines,” Hans concludes. “Whatever the intended end-product – and we continue to discover potentially new areas in which technical textiles can be utilised all the time – we have the machine specification and know-how to turn ideas into reality. In India we also benefit from the strong sales and service support of A.T.E. Enterprises.”

Texchtextil India takes place alongside World of Composites at the Bombay Exhibition Centre in Mumbai from November 20-22.

A. Monforts Textilmaschinen GmbH & Co. KG presented an energy-optimised new version of its industry-leading Montex stenter for the first time at ITMA 2019 in Barcelona from June 20-26th.

With the introduction of the new MonforClean exhaust air treatment system and other unique process innovations, Monforts has been able to further reduce the energy consumption of Montex stenters by a further 13%.

Exhaust air treatment on stenter frames has posed particular challenges over the years, since the air can contain significant amounts of oil, fibre and even wax particles that may see emissions limits being reached in the processing of certain fabrics, depending on the legal specifications.

In addressing this issue, Monforts is now incorporating the MonforClean module into the stenter frame, so there is no additional space requirement. At the same time, the costs for laborious secondary installations and the piping of the exhaust air treatment components, as well as supporting structures are eliminated due to the machine configuration.

"Beyond Conventional Function" is the exciting special topic at the PERFORMANCE FORUM of the next PERFORMANCE DAYS. Besides the obvious beauty, which is the main topic at the upcoming trade fair, often it is the fabrics that also hide some special added benefit that are of particular interest.

THE BEAUTY OF FUNCTION is the main theme at the next PERFORMANCE DAYS trade fair for functional fabrics and accessories on May 8-9th, 2019 in Munich. Around 300 exhibitors present various interpretations of beauty across all categories in their functional fabrics. Although obviously designed for beauty, these innovative fabrics also promise many hidden benefits at the same time. At the PERFORMANCE FORUM, a special area on the PERFORMANCE WALL is devoted to the most important of these special fabrics, rather than highlighting just one of the fabrics in the context of an award.

The PERFORMANCE JURY selected fabrics from well over 1.100 manufacturer submissions; not only fabrics with an interesting look and feel with essential functions like climate regulation and weather protection for sports, but also fabrics that provide the wearer of the garment with additional benefits and special comfort. These special fabrics represent the motto: "Beyond Conventional Function."

Driven by its natural inclination for the implementation of smart and innovative solutions fully in line with the latest global fashion trends, Iluna Group with ROICA™ by Asahi Kasei join the latest edition of the Italian tradeshow Milano Unica, conceived, organized and driven by entrepreneurs, to offer international visibility to the world of textiles in a highly qualified context, in line with the quality of its products.

Experts in the production of stretch lace since 1985, ILUNA today represents the largest European laces’producer. Thanks to the effectiveness of their approach and to their solid and continued commitment, Iluna Group has been the very first lace producer to receive the GRS (Global Recycled Standard) certification for their transformed products, together with the company certification STeP (Sustainable Textile Production by Oeko –Tex®).

A relevant achievement for the firm that, thanks to the Green Label collection (a peculiar range that features a 360-degree responsible approach) made responsible innovation a key value for its production that focuses on smart ingredients as ROICA Eco-Smart™ family, TENCEL™ Lyocell and Q-Nova® by Fulgar.

• Decline in revenue due to volatile standard viscose prices and currencies
• Prices for key raw materials still high
• New production line in Heiligenkreuz in start-up phase
• Backward integration into dissolving wood pulp to be strengthened via joint venture in Brazil

Lenzing – The Lenzing Group generated solid results in a challenging market environment in the first half of 2018. The decline in revenue and earnings compared with the first half of the previous year, which was the best half-year in the company’s history, was based on a mix of volatile prices for standard viscose and price increases for key raw materials, coupled with currency effects. The Lenzing Group’s strategic orientation with a focus on specialty fibers had a positive impact in this environment and is increasingly bearing fruit. The corporate strategy sCore TEN is being implemented with great discipline in order to expand the company’s offering of specialty fibers and even more extensively support customers and business partners.

Revenue declined by 6.4 percent compared with the first half of the previous year to EUR 1,075.4 mn. This decrease is primarily attributable to less favorable currency exchange rates. EBITDA (earnings before interest, tax, depreciation and amortization) decreased by 28.1 percent to EUR 194.8 mn, especially due to price increases for key raw materials and higher energy prices. The EBITDA margin fell from 23.6 percent in the first half of 2017 to 18.1 percent in the first half of 2018. EBIT (earnings before interest and tax) declined by 37 percent to EUR 128.7 mn, leading to a lower EBIT margin of 12 percent (H1 2017: 17.8 percent). The net profit for the period dropped by 39.3 percent from EUR 150.3 mn in the previous year to EUR 91.3 mn. Earnings per share equaled EUR 3.44 (H1 2017: EUR 5.55).

“So far, the financial year 2018 proved to be as challenging as expected, and market headwinds were clearly noticeable. In this market environment, we are satisfied with the solid results we report. We are proud that with our corporate strategy sCore TEN and the focus on growth with specialty fibers we show big steps in the right direction. The recently announced joint venture with Duratex is another important step in executing this corporate strategy,” says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “We will continue to implement our strategy with great discipline and are convinced that this will steadily improve the long-term profitability of Lenzing,” Doboczky adds.

Largest dissolving wood pulp line worldwide

In June, the Lenzing Group and Duratex, the largest producer of industrialized wood panels of the southern hemisphere, announced that they had agreed on the terms and conditions to form a joint venture to investigate building the largest dissolving wood pulp plant (single line concept) in the state of Minas Gerais, (Brazil). This decision supports the self-supply with dissolving wood pulp and the growth in specialty fibers, defined in Lenzing’s sCore TEN strategy. The joint venture will investigate the construction of a 450,000 t dissolving wood pulp plant, which is expected to become the largest and most competitive single line dissolving wood pulp plant in the world. The final investment decision to build the dissolving wood pulp plant is subject to the outcome of the basic engineering studies and the approval by the respective supervisory boards.

Even stronger focus on sustainable products

As a pioneer in sustainable fiber solutions, the Lenzing Group is committed to higher standards in the textile and nonwoven sectors. More than EUR 100 mn will be invested in sustainable manufacturing technologies and production facilities by 2022 in order to realize this vision. In line with the Group’s specialty strategy, another two milestones were set in the first half of 2018: Lenzing announced an investment of up to EUR 30 mn in another pilot line for the production of TENCEL™ Luxe filaments at the Lenzing site. In addition, the company also introduced the environmentally friendly process for the production of LENZING™ ECOVERO™ branded viscose fibers at its Chinese site. Both decisions contribute to better meeting the strong demand for environmentally compatible products.

Expansion of capacities

CAPEX (investments in intangible assets and property, plant and equipment) rose by 60.8 percent year-on-year to EUR 117.2 mn in the first half of 2018. This is primarily attributable to the capacity expansions in Heiligenkreuz (Austria) and Mobile, Alabama (USA) and the expansion of the existing dissolving wood pulp plant in Lenzing. The company is pressing ahead with these projects as well as with planning work on the construction of the next state-of-the-art lyocell production facility in Prachinburi (Thailand).

New brand identity

With the new positioning of its master brand and its product brands, the Lenzing Group started a new phase of branding and brand communication in the first half of 2018. Lenzing decided to carry out a new brand strategy in order to sharpen its company and product profile as a sustainable innovation leader for customers and partners along the value chain as well as for consumers. The most important pillar of this new brand strategy is a brand architecture with a focus on fewer brands and a strong message to consumers. With the TENCEL™ brand as an umbrella brand for all specialty products in the textile segment and the VEOCEL™ brand as the umbrella brand for all specialty fibers in the nonwoven segment as well as the new master brand, which was presented in March, Lenzing showcases its strengths in a targeted manner.

Outlook

The International Monetary Fund expects a further acceleration in global economic growth to 3.9 percent for 2018. However, growing protectionist tendencies in the political arena represent a source of uncertainty. Export-oriented companies in the Eurozone are faced with additional challenges from the currency environment.

Developments on the fiber markets should remain positive, but with continuing volatility. The rising demand for cotton should support prices despite the increase in production. Polyester fiber prices have stabilized after the increase in previous years.

The wood-based cellulosic fiber segment, which is relevant for Lenzing, should see further strong demand. After years of moderate capacity expansion in the viscose sector, significant additional volumes will enter the market in 2018 and 2019. As a result, standard viscose prices will remain under pressure. The Lenzing Group is very well positioned in this market environment with its corporate strategy sCore TEN and will continue its consistent focus on growth with specialty fibers.

The Lenzing Group still sees challenging market conditions for the second half of 2018. In addition to the price pressure on standard viscose, the prices of some key raw materials such as caustic soda are still at a very high level and exchange rates continue to be volatile. Our specialty fibers are expected to continue their very positive development. In this context, the Lenzing Group is satisfied with the earnings development to date, but underlines its estimate that the results for the year 2018 will be lower than the outstanding results in the last two years.

As the leading home textiles trade event in Asia, Intertextile Shanghai Home Textiles is renowned for its size and also the variety of products offered by its exhibitors from China and around the world.

The show will be held from 27 – 30 August in the National Exhibition and Convention Center in Shanghai. It will cover six halls, accommodating over 1,000 suppliers from around 30 countries and regions.
To satisfy buyers from different regions with varied sourcing needs, the show will feature a wide variety of home textile products ranging from bedding, bath, table & kitchen, curtains & upholstery and textile designs & technology to editors, whole home, sun protection, wallcoverings and carpets & rugs.

“The products on offer are of various quality and price levels that visitors can discover both premium brands presented by editors and a massive amount of medium-end products at the show,” said Ms Wendy Wen, Senior General Manager of Messe Frankfurt (HK) Ltd.

Intertextile Shanghai Home Textiles serves as an ideal platform for suppliers to introduce new products to the market as a large number of visitors including import & export corporations, wholesalers, distributors, chain stores and home product manufacturers are attracted.

EUROART and JAB ANSTOETZ are two of the returning editors who are ready to demonstrate their latest collections.
“We are an integrated company based in Beijing which presents both imported decorative fabrics and wallpaper as well as self-owned fabric brands. Buyers can expect to discover advanced jacquard, embroidery, silk and printing techniques from the brands LIZZO and ROMO at our booth,” Mr Frank Lu, General Manager of EUROART said.

Furthermore, the world-known fabrics design company, JAB ANSTOETZ, will also take advantage of the show to present their new outdoor fabrics.
“Our ‘AROUND THE WORLD’ collection possesses high colour stability, mould-resistance and easy-care features. We will also introduce our advanced FibreGuard fabrics which prevent dirt and meet OEKO-TEX® standards,” Mr William Lin from JAB ANSTOETZ said.

Bedding products are another highlight of the show. Returning exhibitor Advansa will display their new fibre formula SUPRELLE™ 95 which is a combination of enhanced sleep comfort and ease of care. And the established French brand TODAY will make their debut at the fair to promote their full range of fashionable bedding items.

Diverse suppliers confirm participation offering all kinds of quality products. Apart from the editors and whole-home exhibitors, worldwide suppliers specialising in different products can be found in the show.

They include:

• Curtains & upholstery: quality brands such as AICO, Ateja, Culp Fabrics, D’Décor, Elastron, Enzo Degli Angiuoni, Harmel Home, Huatex, Sangwontex and more
• Bedding, bath and kitchen: domestic and overseas brands will showcase an extensive range of products for everyday domestic life including comforters, pillows, mattress toppers, bed linen, bathrobes, towels, table napkins and more. Exhibitors will offer insights about utilising various products to display the whole home concept
• Textile design: featuring worldwide original textile design studios. Visitors can discover distinct styles of design from both Asian and European studios
• Carpets & rugs: carpet exhibitors from Afghanistan, India, Pakistan, Turkey and other countries
• Digital printing & technics: showcasing the latest digital printing technology, and cutting, sewing and other home textile equipment technics. In view of the good result in 2017, the show will continue to cooperate with industry media to organise professional seminars introducing some latest technique and new applications in the home textile industry

• Revenue up 9.4 percent to EUR 1,726.6 mn
• EBITDA improvement of 23.9 percent to EUR 397.1 mn
• Retail bond of EUR 120 mn redeemed – Lenzing with net liquidity as at end of September
• State-of-the-art application innovation center opened in Hong Kong

Lenzing – The Lenzing Group generated a substantial increase in revenue and earnings in the first nine months of the 2017 financial year compared to the prior-year period. The company is continuing the implementation of its Group strategy sCore TEN in order to further expand the offering of specialty fibers and be even closer to its customers and business partners.

Consolidated revenue climbed 9.4 percent year-on-year to EUR 1,726.6 mn. This increase is mainly attributable to higher prices for all three fiber generations. Consolidated earnings before tax, depreciation and amortization (EBITDA) rose 23.9 percent to EUR 397.1 mn, corresponding to an EBITDA margin of 23 percent, up from 20.3 percent in the prior-year period. Earnings before interest and tax (EBIT) increased by 34.6 percent to EUR 298.4 mn, resulting in a higher EBIT margin of 17.3 percent (Q1-3 2016: 14 percent). The profit for the period improved by 35.3 percent to EUR 219.3 mn, and earnings per share rose 36 percent to EUR 8.12 per share. In September Lenzing redeemed the retail bond of EUR 120 mn. At the end of the reporting period the Group had net liquidity of EUR 16.9 mn.

“In the first three quarters of 2017, we successfully captured value in a very positive market environment and we continue to implement the sCore TEN strategy with great discipline. The opening of our new application innovation center in Hong Kong is an important step to boost our regional innovation capabilities. We were particularly proud to launch TENCELTM Luxe as a sign of Lenzing’s ongoing commitment to innovation and sustainability”, states Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “After three excellent quarters we are confident to deliver substantially better operating results in 2017 compared to 2016, but at the same time we do expect more headwinds in 2018.”

Focus on customer intimacy

In September 2017, the Lenzing Group opened a new application innovation center (AIC) in Hong Kong, thus setting a further milestone in strengthening its innovation offering to all partners along the value chain. New applications for Lenzing fibers will be developed and tested at the new facility, among them applications for recent innovations such as the TENCELTM Luxe branded lyocell filament, the RefibraTM branded lyocell fiber and the EcoVeroTM branded viscose fiber.

Furthermore, new sales and marketing offices were opened in Turkey and South Korea in the first half of 2017. The direct contact to customers and well-equipped showrooms featuring products made of LenzingTM fibers serve as the basis for providing even better customer support.

Investment program in progress

The Lenzing Group aims to increase the share of specialty fibers as a percentage of revenue to 50 percent by 2020. Following the capacity expansion initiatives in Heiligenkreuz (Austria) and Mobile, Alabama (USA) which are both underway, Lenzing announced its intention to construct the next plant to produce TENCEL® fibers in Thailand.

A new era of sustainable production

In October 2017, the Lenzing Group presented a new product, TENCELTM Luxe, at an exclusive event held in Paris. The TENCELTM Luxe branded filament yarn represents Lenzing’s entry in the filament market. This fiber will support the Lenzing Group’s path towards becoming a true specialty player in the market for botanic materials derived from the sustainable raw material wood.

The launch volumes of TENCELTM Luxe are being produced at the Lenzing site. The basic engineering for a commercial scale plant was commenced.

Outlook
Demand development on the global fiber market remains positive within the context of a generally friendly macroeconomic environment. Lenzing expects wood-based cellulose fibers to grow at an even higher rate than the overall fiber market. After three excellent quarters, the Lenzing Group will achieve an operating result in 2017 that is significantly better than 2016.

For 2018, Lenzing sees a number of somewhat opposing factors that limit visibility regarding fiber price developments. Overall market demand is expected to remain high. However, the Group expects a substantial increase on the supply side, especially for viscose but also for cotton. Price trends for selected key raw materials, especially caustic soda, are difficult to predict. Against this background the Lenzing Group expects a much more challenging market environment for standard viscose during the upcoming quarters.

The above-mentioned development reassures the Lenzing Group in its chosen corporate strategy sCore TEN. The Group initiated its transformation from a volume-oriented viscose player to a value-oriented specialty fiber player at the end of 2015, and will continue the disciplined implementation of its business strategy.