Mr Tack, thanks for joining us on Face2Face talking about Picanol again. The consolidated turnover of the Picanol Group for FY2010 shows increase by 58% compared to the FY2009. Shall we start the colloquy with an insight from you on the determinants?
The strong increase in turnover was realized in both the Weaving Machines division and the Industries division. The Weaving Machines division experienced a strong year in 2010 following the quicker than expected recovery of the weaving machine market, which was mainly driven by a strong demand in Asia. Particularly in China, the market for locally produced machines started to recover at the end of 2009. From the second quarter, exporting textile companies were also running at a cruising speed. This resulted in a recovery in the demand for imported weaving machines produced in Ypres. In the second half of 2010, the market remained good, which was also due to the favorable exchange rate of the Euro. In the fourth quarter of 2010, the Chinese demand for weaving machines slowed down; one of the reasons being the continuously increasing price of cotton. However, this effect was compensated for by an increasing demand from other regions in the world. Sales of spare parts and weaving accessories also profited from a favorable market in 2010.
The Industries division also showed a strong external growth in 2010. Proferro, our foundry, successfully implemented a new molding line, with larger molds and an automated cast iron transport. As a result of the marketing campaign for the new molding line and a clearer marketing presence, Proferro managed to reach new sectors and customers. PsiControl Mechatronics , which produces electronic and electro-mechanical components, mainly showed growth due to an improving demand for electronic products and assemblies. This all resulted in a rise in activities in various sectors, such as compressors, earthmoving equipment, textile machines and HVAC (heating, ventilation & air conditioning) with existing and new customers.
That is really appreciable.<br></br> And, how would you comment on significance of weaving technology in value chain? What all are key movements in overall textile weaving machinery markets globally?
As in all industries also in textiles, there are 3 major headaches: the raw material cost, the energy cost and the cost and availability of labor. Therefore Picanol focuses in all its developments on these items, so that their customers can get the most out of their material, their energy and their talent. Add to that time and market and they are perfectly armed to cope with the ever-changing market conditions.
So, which all countries would be key markets in time to come?
We expect that Asia will continue to be the largest market for several years to come, not only driven by an increasing export, but mainly because of a steady growth of the local demand for textile products due to the rising purchasing power.
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.