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The Rupp Report: Trützschler: Get Closer To The Customer

Jürg Rupp, Executive Editor

In view of the upcoming ITMA Europe in Barcelona, as mentioned last week, the Rupp Report is taking a closer look at some exhibitors that will take part in the event to be held in Catalonia's capital city. Following are thoughts from Hermann Selker, head of marketing of Germany-based Trützschler GmbH & Co. KG, which is headquartered in Monchengladbach. The family-owned company was founded back in 1888.

Three Pillars
Today, after some acquisitions, the company is mainly composed of three business units: Spinning, Nonwovens and Card Clothing. Spinning includes preparation equipment from bale opening to drawing. Nonwovens deals with the processing of man-made staple fibers as well as the whole production process for nonwovens made of staple fibers. Card Clothing produces metallic wires for all kind of clothing.

Trützschler has its own production sites in Germany, China, India, Brazil and the United States, and sales and service centers in Europe, the United States, Mexico, Brazil, Turkey, Uzbekistan, India, Bangladesh, Vietnam, Indonesia and China. The export share of company output is very high: Trützschler exports 97 percent of the machinery it manufactures in Germany. From Brazil, the United States, India and China, the company exports on average 5 percent of its output.

Markets
From Germany, the most important export destinations at the moment are Turkey, Bangladesh and Vietnam. Selker said the high-performance cards TC 7 und TC 7-S plus are the current top sellers in the program thanks to their ability to considerably reduce production costs. Therefore, there is a more economical aspect in the reasons to make new investments.

In terms of the current market situation, Selker mentioned: "In the past few months, the situation was somewhat overheated due to a backlog in demand from the years 2008 and 2009. However, we already see the situation turning back to normal.

"There are no problems at the moment for Trützschler," Selker said. "We are well-positioned and are able to react instantly on volatile market situations." On the other hand, as for many companies, the current currency situation is influencing business somewhat, but not that much. "Of course," he said, "the high euro is causing problems from time to time. However, for the volume markets such as China, India and Brazil, we are producing today in the "dollar area," which leads to a certain balancing."

Reliability, commercial soundness and quick professional service are the most important requirements from the markets, Selker mentioned. Quality from a premium supplier such as Trützschler is a basic prerequisite for success. However, automation solutions are not required in the main markets in Asia.

ITMA Barcelona
The Trützschler staff at ITMA in Barcelona will include some 60 people. The company hasn't invited its customers via direct mail to ITMA. What is Selker expecting for Trützschler from the first ITMA in Barcelona?

"We will show new, more economical products and trust they will be successful, and we expect to strengthen relationships with our global customers," he said. "We will know more about what to expect in the coming years, and we will be able to appraise our customers' expectations compared to our own expectations as their premium supplier."

The cooperation with the organizers is always a big issue for an event such as ITMA. Of course, the Rupp Report wants to know how the exhibitors judge their cooperation with the ITMA 2011 team? Simply, "tenacious," was Selker's answer to this question. Another issue is the budget. Most of the exhibitors are always claiming they spend too much money compared to their budget. "There is no such surprise," Selker said. "We have enough experience to judge the costs in a realistic way and to stay within our budget."

Future
Fostering and furthering development of the company's market position is the main target of Trützschler for the next years, Selker said. And what about the main targets related to R&D for the near and mid-term future? "The focus is on the further development of our products regarding reliability, economy and reduced maintenance," he said.

It is hard to predict trends for the coming years, Selker comments: "We will definitively know more after ITMA. However, in the mid-term range, the South Asian markets will replace a part of the current Chinese export capacities. The domestic demand for textiles and apparel in the most populous countries will lead to a further increase of investments in these areas and countries."

August 23, 2011

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