Home / Knowledge / News / Textiles / Rieter to achieve cost savings of CHF 15-20mn by 2017
Rieter to achieve cost savings of CHF 15-20mn by 2017
21
Oct '15
Rieter expects to achieve cost reduction of CHF 15-20 million by 2017, from measures implemented in 2016 and also lead to new investments in the single digit million Swiss Franc range.

According to Rieter, over the last few years, the spinning industry continued to move to Asia and so, Rieter has made significant investments in China and India by adding production capacities in these countries.

“On top, the appreciation of the Swiss Franc has also contributed to a change in the business environment,” the Switzerland based spinning technologies producer said in a press release.

Earlier in March this year, the company had announced that it intends to streamline production in Winterthur, Switzerland and reduce the amount of purchases in Swiss Francs.

“Both measures are being introduced in response to the changed business environment,” it explained.

The proposed concept for the streamlining of production provides for Rieter to concentrate on the assembly of machinery in Winterthur and thus to discontinue machining and sheet metal operations.

“The corresponding discontinued production will be taken over by other Rieter sites and suppliers, while the remaining production is to be realised in a single building,” Rieter added.

The machinery currently being produced in Winterthur will continue to be assembled and tested as the concept provides for the continued provision of producing machinery of Swiss origin.

The proposed concept entails a workforce reduction of around 150 full time equivalents at the Winterthur site and moreover, there are to be 59 fewer temporary positions.

Rieter plans to minimise the number of potential layoffs through early retirement and fluctuation and also has a social plan in place for potentially laid-off employees.

At the same time, the company also reported a pleasing demand for after-sales services and components, although the market for new machinery is still at low levels.

At the end of September 2015, Rieter had a cumulative order intake of CHF 587.1 million.

“The CHF 68.2 million for orders received by the Components business group in the third quarter is especially pleasing,” it informed.

Rieter further added that the demand dynamics in the After Sales business group too were favourable in the third quarter with order intake amounting to CHF 32.3 million.

The low demand for new machinery in the third quarter resulted in order intake totaling CHF 98.3 million at the Machines & Systems business group.

Rieter also informed that the outlook for 2015 as communicated on July 23, 2015, remains unchanged. (AR)

Fibre2Fashion News Desk – India

Must ReadView All

President Tsai Ing-wen delivering remarks before boarding her plane bound for Central America. Courtesy: Presdient's office

Textiles | On 16th Jan 2017

‘Textiles at centre of Taiwan’s new trade arrangements’

Textiles should be at the heart of Taiwan’s thinking while developing ...

Apparel/Garments | On 16th Jan 2017

Ralph Lauren develops policy on tracking wood based fabrics

In a bid to trace source of wood based fabrics like viscose and rayon ...

Apparel/Garments | On 16th Jan 2017

EC proposes enhanced market access for Sri Lanka

The European Commission (EC) has proposed that a significant part of...

Interviews View All

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search