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TRENDS & MARKETS
Rieter in China –
a trustworthy partner
“Rieter – innovation leader” is the success-defining motto of Rieter in
China. A manufacturing plant was established in China in 1998 to enable
China’s emerging textile industry to be supplied rapidly. The formation
of “Rieter China” is a further step toward getting even closer to
the market.
Fig. 1 Rieter, established
in 1795, has
been active in China
since 1927.
Fig. 2 Interested
customers at the ITMA
Asia + CITME 2008 in
Shanghai.
Rieter has been supplying machinery to China for 80
years and is a recognized market leader in the field of
spinning machinery for short staple fibers. Its good,
long-term relationships with Chinese customers are
based on Rieter’s technological leadership and continuous
innovation. Speaking the customer’s language
is a further building block of Rieter’s success
in China.
China’s economic development
The People’s Republic of China’s “socialist market
economy” is a combination of economic planning
and free market economy. Government stimulus programs
are set out in 5-year plans and serve to establish
new technologies in the country. Since the
start of liberalization the textile machinery, textile
and garment industries and the manufacture of manmade
fibers are being vigorously promoted in China.
ITMA Asia + CITME – Asia’s key trade show
According to ITMF statistics, 82.6% of ring spinning
capacity and 46.1% of rotor spinning capacity in the
short staple sector were installed in Asia in 2008.
This market shift toward Asia, and to China in particular,
has already been apparent for some years.
Trade show organizers have adjusted to this market
trend and focused on the Chinese market. ITMA Asia
and CITME were combined for the first time in 2008
and relocated from Singapore to Shanghai.
Rieter’s activities in China
Rieter delivered its first spinning machines to China
as long ago as 1927. In order to serve the Chinese
market from a local base, the sales office has been
moved from Hong Kong to Shanghai. With the acquisition
of ICBT in 2001, the manufacturing plant es-
tablished in 1998 also came into Rieter’s possession.
It is located in Changzhou, on China’s west coast,
200 km west of Shanghai. Initially, only components
for textile machines were produced in this plant.
Once compliance with strict Swiss quality specifications
was assured, manufacturing operations were
expanded. Manufacturing complete textile machines
for the local market eliminates import duties and exchange
rate risks for Chinese customers.
The plant in Changzhou has been certified for compliance
with ISO 9001 since 2005 – thus guaranteeing
conformity with quality specifications stipulated
by international standards. The production plant
was extensively expanded in 2006. Modern production
lines – from sheet metal production to final assembly
– are installed on floor space of 24 000 m 2 .
Further expansion is planned.
Rieter China established in 2005
The expansion of Rieter’s presence in China is reflected
not only in the increase in production capacity.
Rieter’s organization has also been adapted
accordingly. The Rieter China business unit, a wholly
owned subsidiary of Rieter Ltd. in Switzerland,
was formed in 2005 and currently employs a workforce
of more than 600. Sigi Föhn, Head of Rieter
China, explains its strategy as follows: “A major goal
of Rieter China is the adjustment of the product portfolio
to the requirements of the Chinese market. This
is supported by a local market organization in China
which is in constant contact with customers and enables
customers’ wishes to be incorporated in product
planning.”