Spring 2010

A look behind the scenes at Xennia Technology

On 18 February Xennia Technology played host to some thirty investors, analysts and journalists from the United Kingdom, the US and the Netherlands at its operations in Letchworth (UK). The programme included presentations, a look behind the scenes of digital inkjet technology and the unveiling of the process demonstration model for the digital printing and finishing of textile and other materials.

Some thirty investors and analysts from the Netherlands, the United Kingdom and the US paid a visit to the company on the 18th. First there were presentations: about inkjet technology, how it links up to our business model and its significance from an IR point of view, with specific emphasis on the added value which Xennia has for future developments.
In the afternoon the guided tour took them through the laboratory, the development departments and past the new process demonstration model. Together theory and practice produced a good picture of what the new technology is capable of and what it means for the potential of TenCate, as can also be seen from the reactions of the guests.

‘Through thick and thin’
Willem Burgers (fund manager at Add Value Fund ) has been following TenCate since 1982, Tom Muller (senior analyst at Theodoor Gilissen Bankiers ) for 25 years – ‘through thick and thin’. Tom Muller has been providing positive recommendations about TenCate for a number of years, based on its portfolio ‘with state-of-the-art products which can continue in their markets for many a long year yet’. The company, he believes, has strong market positions that will lead to attractive margins. ‘This long-term outlook based on its available potential continues to appeal to shareholders.’ Willem Burgers has seen the company undergo a metamorphosis ‘from industrial conglomerate to a fully focused and specialist technical and other textiles group. The presentation on 18 February marked the start of a new chapter in TenCate’s history. Xennia’s expertise and potential, based on the projections announced, represents a significant strengthening of the TenCate business model’.

Going down well
Both the presentation of Xennia’s business model in relation to TenCate and the presentation of the machines in operation – including software and inks – went down well. ‘The potential is obvious, Tom Muller feels. ‘The degree of professionalism at Xennia gives one a good feeling about the involvement of the company and its employees in its products.’

New market opportunities will be created as a result of this technological development. ‘The technology can lead to a strong and attractive market position in a variety of major areas of application. If you want to supply components and inks, new machines will have to be brought in and customers should invest in them. The transformation to digital production processes will therefore be gradual, but ‘the patented technology gives you confidence. I’m pretty sure that large companies will be using this in due course.’

The comments and opinions of the visitors proved that these developments are regarded with great confidence. Of course, the process is still in its infancy, but through Xennia TenCate has acquired state-of-the-art know-how.

Blue fabric (Tecawork Blue 65287)