Textiles has always been a global industry. It’s all the more important for us to combine local proximity to customers with global cooperation. The achievements of the investment program 2012/2013 will make a major contribution to sustainable sales and profitability growth.
In 2012 and 2013 Rieter put into effect a 140 million CHF investment program. A significant investment and an extraordinary program for Rieter. It was an enormous challenge for the company’s employees. Was it worth the effort?
Erwin Stoller: Definitely. Rieter had set itself the strategic target of staying in the forefront worldwide in the premium segment for short-staple spinning machinery and components. We also aimed to expand our position in the local markets in China and India. The investment program 2012/2013 has substantially reinforced our market position. With it we have put ourselves on track for continued success in future.
These have been exceptionally challenging, intensive years for our employees. They have performed magnificently, since they also had to cope with their everyday work in addition to the strategic projects.
The 2012/2013 investment program focused on rapid expansion in China and India. What is your assessment of these two locations today?
Erwin Stoller: We have created additional capacity with the expansion and establishment of manufacturing facilities. This will enable us to supply our customers considerably faster, even in boom periods, and we are even more flexible. We also deliver in the high quality that is a feature of the Rieter brand. These plants are technologically state-of-the-art. Our employees are well instructed and trained. Operational excellence with uniform processes worldwide is in effect for the entire Rieter manufacturing network.
With the investment program 2012/2013 Rieter put a strong focus on China and India. Would you also be prepared if another region were to develop?
Erwin Stoller: Yes, we are prepared. The textile industry has always been a global industry. It’s all the more important for us to combine local proximity to customers with global co-operation. Customers in neighboring countries also benefit from our modern manufacturing facilities in China and India.
An extensive global footprint with a broad product range is extremely important for us. Europe is still the center from which we actively observe and shape developments in the world. America has for some time been experiencing a welcome revival, in which we are already participating.
Rieter has also given innovation a boost. How has the product range changed as a result of this in strategic terms?
Erwin Stoller: Our offering of integrated systems in all four spinning processes is one of our most crucial success factors. Our systems can also process all types of short staple fibers. We therefore have at our disposal a unique wealth of know-how in the spinning process. Our customers acquire optimally orchestrated machines and technology components. This has always been our strong point in the premium segment. In 2011 there were still considerable gaps in our offering for the local Asian markets. Now we have the product range we were aiming for. The new products are being well received.
In the past three years we have updated virtually the entire product range in terms of machinery. The addition of air-jet spinning technology to our portfolio was strategically important. At the same time, we have made significant progress in rotor spinning. In the field of technology components we have also brought important and successful innovations onto the market. Our machines are so good not least because they incorporate components that have been further developed alongside them.
With this investment program 2012/2013, Rieter also sought to improve its global processes. What’s the significance of this? What have been the benefits of these efforts?
Erwin Stoller: On the one hand we have launched projects for global standardization and IT support of business processes – basic prerequisites for a global company. All our locations should operate smoothly together in a worldwide network. These are high aspirations which we don’t yet meet in full. There are delays here. Work on this aspect will be completed in 2014. Finally, customers will enjoy the delivery performance they expect and deserve.
At the same time we have focused the organization and especially manufacturing on global working methods. Rieter aims to establish the same high standards of operational excellence worldwide. The improvements have already resulted in more efficient co-operation and a perceptible improvement in competitiveness in production operations. We now need to ensure that the effects of this method are sustained.
The achievements of the investment program 2012/2013 will make a major contribution to sustainable sales and profitability.