Co-Martin takes over Rieter subsidiary in Valence, named R.I.T.M.
22 Nov '06
2 min read
Rieter Management AG is selling its activities with cabling, twisting and texturing machines retroactively from 31.10.2006 to the French company, Co-Martin.
The new owners have many years of experience in the man-made fiber business and are taking over all activities at the location in Valence, France. Non-disclosure of the selling price has been agreed.
The strategic review of the man-made fiber activities within the Textile Systems division has shown that a sustainably positive further development of the business with cabling, twisting and texturing machines within the Rieter Group is not viable. After careful examination of all possible options, the Board of Directors and the Group Management have decided to sell the whole subsidiary, Rieter Textile Machinery France SAS in Valence with all three business fields to Co-Martin, retroactively per 31.10.2006.
The Rieter subsidiary in Valence employs 153 persons and achieved a turnover of approx. EUR 50 million in 2005. Both parties have agreed not to disclose the selling price.
Due to necessary value adjustments, the transaction will result in a book loss. Despite opting out of these activities, Rieter will continue to participate in the market growth with the processing of man-made fibers through the business with staple fiber machines where Rieter is a leading provider of complete plants. Staple fiber machines are also increasingly processing man-made and blended fibers alongside cotton fibers.
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