link no. 59 customer magazine spun yarn systems - Rieter

On the one hand, we are able to more precisely define
our business model to the shareholders as a result of
the branch focus. On the other hand, the new organizational
structure with the two business groups Spun
Yarn Systems and Premium Textile Components creates
greater transparency.
2 business groups for the clear orientation on both
our customer segments
Primarily, however, these changes benefit our customers.
We can strategically concentrate on one business
area and thereby carry out our decision-making
processes more quickly and thoroughly as well as specifically
using our resources. With the focus of our
company on the two business groups, Spun Yarn Systems
and Premium Textile Components, we take full
account of the differences between these two business
spheres. The organizational innovations reflect
a development that we have actively promoted in recent
years. Alongside our established business with
textile machines under the Rieter trademark as well as
the associated spare parts and service activities, we
have systematically expanded the business with technology
components for staple fiber spinning. The business
group Premium Textile Components, together
with the strong trademarks Bräcker, Graf, Novibra and
Suessen, is one of the worldwide biggest suppliers
in this field. As an independent organizational unit,
Premium Textile Components is largely independent
from Rieter’s machine business, both strategically
and financially. It serves not only spinning plants but
also machine manufacturers; one of them is Rieter itself.
The positive development of demand in both our
segments, the machine business and the component
business, has shown us that we are on the right path
with this orientation.
Business expansion for the benefit of our customers
Rieter has a solid balance and the long-term financing
of our projects is secured. We now have the strategic
flexibility and the financial strength to position our
business for a continuing successful future. Rieter will
continue to grow in the coming years with products
for our customers in markets in the traditional countries
as well as in markets with the biggest growth in
China and India.
LINK 59 . 1 /2012
TRENDS & MARKETS
To achieve this, we have set ourselves 3 strategic
goals:
• We want to remain number 1 in the premium segment
and in the middle segment to become at
least number 2.
• We want to expand our position in China and India.
This also includes a specific product range for the
growing domestic markets.
• We want to close gaps in our product range, with
our own innovative force, but also by exploiting
external opportunities for growth.
Where do we stand today, when judged on these lines,
and how was our start as a newly formed company?
As far as the market environment was concerned, the
business year 2011 was anything but easy. Rieter,
however, performed well. With a solid financial basis
and a strong market position, we intensified our investment
activities in 2011 in order to give impetus
to achieving our strategic goals. Both business groups
expanded their production capacity in the big growth
markets China and India, to become even closer to the
customers and to ensure delivery capability. With specific
products, we were increasingly able to win customers
who produce yarns for the domestic markets
in both countries. Equally, we accelerated our investment
activities and significantly increased investments
in research and development.
Rieter will continue the intensified investment activities
in the business year 2012 and has already set
aside substantial means – for the benefit of our customers
in both market segments, the machine business
as well as the component business.
12-102 •
Erwin Stoller
President of the Board of Directors
and Executive Chairman
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