Rieter's textiles order book swells, target markets - China & India
15 Aug '06
6 min read
Rieter Textile Systems: operating result more than doubled The textile industry's geographical shift to Asia and the simultaneous modernization of production capacities in that region is continuing undiminished. Rieter will increasingly develop products for specific markets and manufacture them locally in order to reinforce its position in those segments that have been served primarily by local suppliers to date.
The Textile Systems division can look back on a very good first half. The uncertainties in the global textile machinery market in connection with the discontinuation of WTO textile quota regulations have subsided and given way to a phase of rapid modernization in the staple fiber machinery sector. The market for staple fiber machinery recorded strong demand, especially in India. Rieter registered many more orders there in the first half than in the same period of the previous year. Demand from China also increased again, but sales there are still below Rieter's earlier peaks. The Graf Group, wholly owned by Rieter since October 2005, has substantially reinforced Rieter's position in the components business and fulfilled expectations in the first half of 2006 in terms of orders received, sales and earnings.
Orders received by Textile Systems in the first six months increased by 91% to 974.2 million CHF (511.1 million CHF in 2005); excluding acquisitions and currency effects, the increase amounted to 80%. Alongside India, the major markets were Turkey, China, Pakistan, South Korea and Bangladesh. In the staple fiber machinery sector there was good demand for spinning preparation products and also for the various final spinning processes, with Rieter's expertise as a systems supplier and innovation leader once again taking effect. A further market revival was also apparent in the components business and in nonwovens machinery. The market for manmade fiber machinery showed initial signs of revival. Nevertheless, sales in the first six months were subdued.
marketing@alchempro.com
