Production units at all locations to be covered
The long-established knitting machinery manufacturer from Albstadt, Germany, Mayer & Cie. (MCT) is planning considerable investments in technology, facilities and personnel for the years 2015 and 2016. The largest individual share will go to the expansion and modernisation of MCT’s headquarters in Germany. Investment of about four million Euros is planned in order to expand the capacities in the production line in all locations, to modernise the company’s own machinery and comply with new software requirements. On the agenda is also the increase in size of the subsidiaries in China and the Czech Republic.
“We are very pleased with the company’s performance in the past years. In 2014 we achieved a turnover of roughly 90 million Euros over the entire group which is seven percent more than in the preceding year. We want to utilise this success to set the right courses for the future” states Mr. Benjamin Mayer, Managing Director at Mayer & Cie. The Albstadt-based knitting machinery manufacturer is aiming at accomplishing a good balance between strengthening its headquarters and expanding its production capacities close to the market.
Restructuring and modernisation of headquarters
Foundation of the company’s future success and expansion is laid in Germany that is agreed upon at Mayer & Cie. For the headquarters of the family-run business in Albstadt, investments of about three million Euros are budgeted. Also employee numbers will further be increased just as in the years before.
A restructuring and modernisation of the building equipment at the headquarters is another part of the investment plan. The heating and cooling systems have to be revised in order to reduce energy consumption. For MCT energy efficiency draws a continuous line, starting at production and assembly and leading up to the final product, the knitting machine. It is with good reason that the company is a member of the Blue Competence initiative and engaged to fulfil authoritative criteria for sustainability.
The machinery which is used for manufacturing knitting machines in Albstadt-Tailfingen will also undergo modernisation. For this sector there is a budget of about one million Euros. “In order to consistently supply our customers with optimum quality we regularly bring the machine pool we use for assembly and production up to date” states Managing Director Mr. Benjamin Mayer. It is in Albstadt where the key parts of the knitting machine are manufactured, above all, the knitting head. All knitting machines from Mayer & Cie., with few exceptions, are made in Germany.
Key markets outside Europe
Investments of a total of about one million Euros are budgeted for the expansion of the capacities of the company’s subsidiaries in the Czech Vsetin and in the Chinese province Shanghai. That is how MCT brings parts of its production closer to its key markets. After all, since many years, the majority of MCT’s customers cannot be found in Germany anymore but in Asia, with Turkey as exemption. 210 knitting machines worth about 16 million Euros were sold there in 2014. In Asia the sales quantity has continuously been increasing for years, above all in India and China. Here the demand for machines of the mid-range price segment is very large and they preferably have to be available on short notice. “Our Asian customers often order a machine only after they have accepted an order themselves which they cannot complete in due time with their existing machinery. If we want to be successful, we need to be able to react quickly and flexibly to these short-term orders. On top of that, this market is very price sensitive” says Mr. Mayer.
Mayer & Cie. accommodates those needs by expanding its site in China. This is where the MSC 3.2, a single jersey machine developed particularly for the Chinese market is assembled. With this machine Mayer & Cie. has been able to increase its share in the Chinese market significantly in the past years. In 2014 MCT sold a total of about 200 machines worth approximately eight million Euros. Another increase of 20 to 30 percent is expected for 2015. 50 of the MSC 3.2 II manufactured in Shanghai are said to be available for export in 2015. Besides, MCT plans to develop an equivalent double jersey machine and manufacture it in the Chinese Mayer plant as well. In order to meet these requirements, relocation to larger premises was completed in April this year.
At the site in Vsetin in the Czech Republic, which MCT acquired in 2011, S and D-series machines including a few key components are manufactured. With this product line introduced in 2004, MCT could significantly expand its customer base in the premium price segment both in the single and double jersey sector. Particularly in India machines of these lines enjoy great popularity. MCT could sell around 220 machines worth about 8.7 million Euros in 2014, 125 machines more than in the preceding year. In order to prepare itself for an increase in demand, Mayer & Cie. is planning to construct a 5000 square meter plant in Vsetin. Construction shall commence during the first half of 2015 and is scheduled for completion by the end of 2016.
