Demand was broadly based worldwidefor Spun Yarn Systems. Rieter has long been well-anchored in all markets, thanks to a strong sales organization and good representations.
The majority of orders received by Spun Yarn Systems in 2012 were from China, followed by Turkey, India and other Asian countries. The Turkish market was still affected at the beginning of 2012 by restrained consumer spending in Europe, but the second half of the year brought a modest increase in demand. Despite a challenging environment and lower volumes in important markets in 2012, Spun Yarn Systems upheld its strong position and expanded, particularly in the key market of China. This was not only thanks to systematic localization, but also because yarn quality, energy efficiency, raw material yield and automation play an increasingly important role everywhere today.
Investment program
Funds allocated for the 2012-2013 investment program were mainly utilized for expansion in Asia and for improving business processes. The latter are being aligned to the global orientation of Spun Yarn Systems in order to enhance flexibility and transparency for the benefit of customers, reduce tied-up capital and throughput time, and save costs accordingly.
Expansion in Asia
The second Changzhou plant in China, inaugurated in June 2012, is not only the most modern but also the flagship plant of this business group with regard to operational excellence. In 2012, the Rieter company in China was officially renamed “Rieter China” and is therefore of fully established repute throughout the country. Similarly, the new KoregaonBhima plant in India will in future provide local customers with locally manufactured Spun Yarn Systems products.
The foundation of success here is built on global co-operation in all areas, including product development. While the principles are worked out in Europe, suitable adjustments have to be made locally. This enables a product portfolio that is adapted to the respective market but is nevertheless standardized.
Innovations
For final spinning processes, where most energy is consumed, the G 32 and G 35 ring spinning machines, the K 45 compact spinning machine and R 60 rotor spinning machine are energy-saving leaders. The E 80 comber launched in 2012 is the only such machine on the market that customers themselves can optimize for quality, productivity or material yield.
With regard to automation, Spun Yarn Systems offers the fastest and most dependable ring-spinning doffer, the only automated comber, comprehensive transport automation solutions, and the “SPIDERweb” information system.
Further development of the airjet spinning machine is aimed at a wider application range with regard to yarn count and raw material, thus exploiting greater market potential. The latest Spun Yarn Systems innovations are not restricted to machinery, but have also made their mark in spare parts business.
All in all, this business group launched more than 30 new products in 2012 that offer significant customer benefit in terms of spinning process improvements. The well-filled Spun Yarn Systems product pipeline promises a good flow of important innovations for the years to come.
Spun Yarn Systems made good progress in 2012 with the worldwide Operational Excellence initiative. This promotes high quality standards, punctual and complete deliveries with no missing parts, shorter throughput times, discipline and good order.
Product costs were continuously reduced during the year under review, and there is further savings potential for the years to come. The global business process standardization project is well on schedule.
The Spun Yarn Systems Business Group posted lower order intake for 2012, although the second half of the year brought a more positive trend. Spun Yarn Systems made great progress in building up local presence in China and India. The stronger market position of the business group in China keeps it in an excellent position for long-term growth.
Orders received by the business group declined by 10 per cent in 2012 to 695 million CHF (2011: 775 million CHF). After slow order intake early in the year due to unsatisfactory customer earnings, 11 per cent more orders were received by Spun Yarn Systems in the second half-year than in the first six months.