Rieter has forged ahead with the improvement program STEP UP in the 2017 financial year. Strengthening innovative capacity and the aftersales and components business as well as increasing profitability through cost reduction remain the top priorities.
The systematic implementation of the current innovation program continues. For example, the single-head draw frame RSB-D 50 was launched successfully in 2017. This year Rieter will present a new ring spinning machine and a new compact spinning machine. In the Business Groups After Sales and Components, innovations that enjoy strong demand are also regularly launched on the market. Research and development expenditure increased to CHF 49.2 million (2016: CHF 48 million).
Rieter has its further priority for the digitization of spinning mills. Thanks to the combination of profound expertise in spinning mills with technologies from the digital world, the UPtime Maintenance Solution has emerged as the digital expert system that optimizes the maintenance of spinning mills and their monitoring in relation to predictive maintenance.
In mid-2017, Rieter acquired the SSM Textile Machinery Division (SSM) from Schweiter Technologies AG in Horgen (Switzerland). SSM is the world’s leading supplier of precision winding machines in the fields of dyeing, weaving and sewing thread preparation and enjoys success in individual segments of filament yarn production. Assigned to the Business Group Components, the unit will further strengthen Rieter’s components business.
Following the agreement with the Works Council, restructuring at the Ingolstadt location is proceeding according to plan. Rieter will concentrate on the development of machines in Ingolstadt, and the previous production will be relocated to Ústí nad Orlicí in the Czech Republic. Overall, Rieter expects cost reduction of more than CHF 15 million from 2019 as a result of these measures.
Winterthur location
In Winterthur, the intention is to create a modern location, concentrating the customer center, product and technology development, assembly and administration on an area of approximately 30,000 square meters. In October 2017, Rieter launched a study contract and awarded this to five renowned consultancy firms from the Canton of Zurich. These firms have until the end of March 2018 to submit their projects, which will then be assessed by a panel of judges. The final decision on the realization of the project will be taken by the Rieter Board of Directors during 2018.
In the first two months, demand has been on a stable level. Rieter expects this momentum to continue. With a stronger second semester, Rieter expects sales and profitability for 2018 to be above the level of 2017 (before restructuring charges). In the first semester of 2018, EBIT and net profit for the group are expected at the level of the previous period due to the country and product mix at the Business Group Machines & Systems.