The internationally set up companies will continue to grow with the customer markets. Others will follow or becoming part of bigger organizations.
Dr. Michael Schuerenkraemer, Managing Director at Trützschler GmbH & Co. KG, talks about the various factors driving change in the global textile machinery industry with Fibre2Fashion Correspondent Ilin Mathew.
Synopsis:
The Truetzschler Group is a specialist in fiber preparation for the yarn spinning and nonwovens industries. The company has its manufacturing units in six countries around the world.
Dr. Eng. Michael Schürenkrämer joined TRÜTZSCHLER GMBH & CO. KG in 1986 as Assistant to the Management. Prior to this he successfully spent 2,5 years at the Deutsche Babcock AG, Oberhausen as Management Trainee and as Deputy Project Manager for a power plant. He completed his graduation in 1984 in Engineering with additional studies of Business Administration.
Excerpts:
According to you, which are the countries or regions that are likely to replace China as the ultimate low-price, high-quality sourcing and manufacturing destination for textile machinery? Why?
China has very high requirements of textile machinery for itself which will continue in near future. Other countries offer opportunities with lower labour costs but compared to China their markets are much smaller. Therefore the export is required there. This will shift further some capacities from China being used only for export today.
Vietnam, Bangladesh and maybe African countries will gain. Only when the capacities have been shifted to the lowest possible costs which includes also the energy costs then we may see an end of replacements. To mention is also Turkey as this country provides a broad industrial base with all kinds of requirement of textile machinery in the future. It is very remarkable that the US is gaining today from their low energy costs by new investments into the spinning sector which was partly lost at about ten years before.
Trutzschler, the company which began as a metal working shop in 1888, is now a pioneer in textile machinery making. A lot has changed in the textile machinery sector in the last 125 years. Is there anything that is still the same in the industry?
There are naturally a lot of changes during such a long time but basic wishes of our customers remain always the same: striving for better quality and for higher efficiency of the processes which can be expressed in continuous increase of the performance/cost relation.
Can you name some technological innovations for solving the problem of power crisis and energy efficiency in Asian textile industry?
Generally spoken the demand is higher which can be overcome only through further investments into more power plants. Very long term I see technological innovations as nuclear fusion and renewable energy, better storage systems of energy and hopefully the overcome of friction through supraconduction but all these technologies will take decades to mature.
According to the company, the most important factors for the development of Trutzschler over the course of 125 years have been, and still are, high innovative strength, close customer relations, good service, long-term success orientation, and the flexibility of a family-owned company. Can you explain it further?
Not really, as you have mentioned the most important criteria already. What is behind are finally the people and we enjoy a staff of great employees working in a long relationship with the company.
Can you let us know about the landscape of textile machinery market and its growth prospective in the coming years?
I think the internationally set up companies will continue to grow with the customer markets. Others will follow or becoming part of bigger organizations. Definitely China, India, Bangladesh and Vietnam will play an even more important role in the future.
The issue of sustainability is becoming ever more prevalent due to growing ecological awareness. What is the best method to achieve transparency and sustainability in textile machinery industry?
I think transparency is there in principal but sustainability is depending on the path of permanent improvement and application of latest technologies as long as these proof a better performance/cost relation.
How do you see the growth of textile machinery market in emerging countries?
As others too, emerging markets need stable environmental conditions politically and infrastructure wise. As long as investors feel secure long term they continue to invest and grow.
Do you agree that the major drivers of textile machinery market is the growth in the Automotive and Residential Construction industries as textiles are mainly used in the manufacture of upholstery in homes and vehicles? Can you elaborate on it?
These drivers are major forces but also the requirement for garments should not be neglected as the world population is growing tremendously further. And further the nonwovens industry is playing an important role with fast growing new applications.
Seeing the growing competition from Chinese textile machinery manufacturers, do you think that the industry will remain a viable business in Germany and other countries in near future? Why?
As long as technical and technological leadership can be kept it will remain to a certain part in these countries.
Since mid-2007, the advanced economies, including the US, Japan and Europe, together are contributing more to growth in the US$ 74 trillion global economy than the emerging nations, such as China, India and Brazil. Will it create new challenges for companies with global operations?
It is difficult to predict in detail of which kind these are but in general I feel yes. And we all have to remain flexible in reacting appropriately.
Published on: 23/06/2014
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.
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