19 Years Of Successful Cooperation: Loepfe Talked To Mr. Zafar Iqbal Rana, General Manager Of Ibrahim Fibres Limited (Textile Plant 2), Pakistan

WETZIKON, Switzerland— March 15, 2018 — Ibrahim Fibres Limited was founded by Sheikh  Mohammad Ibrahim together with his sons Sheikh Mukhtar Ahmed and Sheikh Sardar Ahmed in August 1968 as “Ibrahim Agency Pvt Ltd” that later became instrumental in establishing one of the largest textile businesses in Pakistan, the Ibrahim Group.

Loepfe: What are IFL’s main products and on which key markets do you focus?

Mr. Zafar Iqbal Rana: Main products of Ibrahim Fibres Limited include; Polyester-Cotton combed blends (count range Ne 10-45) and Polyester-Viscose blends (count range Ne 18-66). The products offered by Ibrahim Fi-bres Ltd. are known and appreciated for their versatility as the produced yarn is perfectly usable for the weaving and knitting process. The experts at IFL are focused on providing quality conscious customers in the local mar-ket with the best. At the same time, we pay attention to the quality demands of our clients including all major fabric manufacturers & exporters.

Loepfe: What are the challenges to IFL today and in the future?

Mr. Zafar Iqbal Rana: IFL believes that nowadays cost-effectiveness and market competitiveness are the two key factors for the growth of any organization. Overall, we can say that the lack of digitalization and modernization of plant equipment is the fundamental factor for crises in Pakistan Textile Industry. By adapt-ing to modern equipment and techniques as well as the advanced philosophy at IFL, we are able to satisfy our customers with valued products while maintain-ing cost-effectiveness in operations. Moreover, IFL is also working purposely towards “Industry 4.0”. Other initiatives under consideration at IFL include multi-source self-power generation (HFO, Natural gas, Coal & National Grid). The possibility to mix sources for power generation makes it more economical.

Loepfe: IFL has a very interesting, for a spinning mill quite unusual, management philosophy. Could you please explain to us he main pillars of this philoso-phy? As an example, preventive maintenance is taken very seriously at your mill. What are the reasons and what kind of benefits results from it?

Mr. Zafar Iqbal Rana: Ibrahim Fibres Limited is based on the philosophy of “Exceeding customer expectation and strive for excellence in all spheres of our activities, and to manufacture high quality products through the use of advanced technology operations.” IFL is proud to be known as the leading manufacturer of staple fibers and yarns with consistently excellent results. Achieved through the “no compromise on quality” phi-losophy. To deliver high quality, IFL places an emphasis on selecting the best raw materials available. For exam-ple, world’s best Viscose from Lenzing and PSF from Ibrahim Fibres are used and processed with European technology. At the same time, emphasis is placed on the development of staff.

IFL carries out regular maintenance checks with routine observations and condition monitoring. The experts at IFL are keen to ensure and identify the problematic areas and parts to avoid any kind of technical issues which could lead to delivery delays or lower product quality. To ensure the quality standards, IFL also works with scheduled replacement of quality related genuine parts.

Loepfe:  Pakistani cotton has serious contamination issues, how do you see Loepfe will be effective for Pakistani cotton?

Mr. Zafar Iqbal Rana: With no doubts, modern markets are concerned and highly sensitive about the quality of products. In such situations, contamination in Pakistani cotton is nothing less than a nightmare for the spinners. Despite the integration of automatic contamination sorting machines in opening and cleaning lines, foreign matter are still making their way up to the winding process. Therefore, it is indispensable for us to include optical based foreign parts detection sensors of Loepfe within our winding process.

Loepfe:

  • Why have you continuously chosen to work with Loepfe?
  • Did the principal of optoelectronic yarn monitor-ing, which measures, independent of changing ambient conditions, influence your decision?
  • Apart from the technology and development of the yarn clearers and related central monitoring systems, perhaps there are also other decisive factors (service, people and support)?

Mr. Zafar Iqbal Rana: IFL believes that as a leading manufacturer of optical yarn clearing systems Loepfe is not only efficient in dealing with all types of yarn faults but also provides vital information regarding the yarn produced with precisely tailored reports which in turn leads to optimization of the entire process. Being a leading blended yarn manufacturer, we know that the optical yarn sensors made by Loepfe are less affected by TDO (Titanium dioxide) which is present in the polyester fibers.

Apart from all the technical product features and benefits, quick and easy access to support and service are also key factors enhancing the productivity of any plant.

Loepfe:

  • Being the top of the line mill in Pakistan, IFL never compromise on quality.
  • Could you please share with us your approach to yarn quality?
  • How do Loepfe yarn & mill monitoring systems impact to further enhance IFL yarn quality?

Mr. Zafar Iqbal Rana: Consistent yarn quality with minimum defects has always remained a prime requirement of customers. For this reason, IFL always believes in using the latest quality control equipment on its machines. IFL believes that the detection and removal of yarn faults regardless of critical conditions and the unique foreign parts detection & removal tech-nology will surely serve to fulfill our commitments. In this regard, standard reports from the MillMaster TOP system are quite helpful in terms of quality monitoring. Here, we compare the data in both tabular as well as graphical format.

Thank you for the good cooperation and the valued and open communication. It’s always a constructive and interesting exchange which makes it easy to suggest & provide the right solutions. We are looking forward to many more years of this pleasing cooperation and hope that the crystal from the Swiss mountains delights you.» Mr. Joerg Mueller, Sales Manager Loepfe.

Posted March 15, 2018

Source: Loepfe Brothers Ltd.

Emglare Smart Clothes With Built-in ECG And Heart Rate Measurement

SAN FRANCISCO — March 15, 2018 — Emglare introduces smart clothes designed with special sensors for monitoring ECG and heartbeat. Emglare smart clothes directly communicate with the mobile phone application where all health information is available, thus bringing a completely new look to clothing as we know it.

“Our goal is to create the best smart clothes in the world that are not only super smart but mainly comfortable and suitable for everyday wearing,” said Jiří Pastor, CEO and founder of Emglare. “Our products are developed by a group of specialists from different disciplines – healthcare, informatics and fashion industry.”

The company’s first commercial product is the Emglare Heart mobile application, compatible with its uniquely designed smart clothes with built-in ECG and heart rate sensors. This is the first type of clothing that not only monitors health condition but can also be recharged directly with a wireless charger. Emglare has designed products for both men (an undershirt and a sports t-shirt) and women (a sports and regular bra). The products are suitable for daily use – one of the company’s aims was to produce smart clothes that are natural and comfortable even when worn all day. All data are transferred into the mobile application, immediately available for the users.

Emglare is currently preparing all materials to run a Kickstarter campaign where consumers will be able to see a promo video and also pre-order their products.

Posted March 15, 2018

Source: Emglare

INDA Announces Five New Members To Board Of Directors

CARY, NC — March 15, 2018 — INDA, the Association of the Nonwoven Fabrics Industry, announces five newly elected members to its 2018 Board of Directors. These accomplished new Directors demonstrate extraordinary commitment and strong leadership to the nonwovens industry:

  • Mary Liz Cahill, Business Development Manager, SWM International
  • Luca di Benedetto, President, ATEX, Inc.
  • Ricardo Fasolo, Managing Vice President, Fitesa Inc.
  • Larry Grabowy, President & CEO, Tufco LP
  • Richard Palmer, President & Co-Founder, Nehemiah Manufacturing

INDA’s strategic and governance affairs are managed through its Board of Directors. This governance is essential to the good stewardship of INDA Members’ dues, INDA reserves, and business of the Association. INDA’s Board of Directors serve as fiduciaries of INDA’s finances and provide direction to its operating plans as well as counsel to the President. The Board guidance supports INDA’s mission to conduct activities that enhance the success of the nonwovens industry and its members.

The Board is responsible for reviewing the strategic plan, policies, programs, dues and operating procedures affecting the association’s 360 members. The 20-member board includes elected Board Officers and the immediate Past Board Chair. One-third of the entire Board is elected each year for a three-year term by a majority vote of INDA’s general membership.

“This year’s dynamic group of new Board Members bring a strong set of invaluable skills, experience, and insights to INDA. We value their leadership in helping us create a business environment conducive to the long-term success of INDA and the industry. We look forward to developing under their guidance even more services to meet the needs of our members and the industry,” said Dave Rousse, INDA President.

INDA’s Executive Committee is authorized to act when the Board of Directors is not in session and includes the following officers and appointees:

  • Todd L. Bassett, Chairman (Managing Director, Fi-Tech Inc.)
  • Paul A. Marold, Jr., Vice Chair of Planning (President, Lydall Performance 
Materials, Inc.)
  • Christopher Astley, Vice Chair of Finance (President-Advanced Airlaid Materials Business, Glatfelter)
  • Karen Castle, Past Chair (Director of Americas, Sales, Jacob Holm)
  • Walter G. Jones, Appointee (CEO, Precision Fabrics Group Inc.)
  • Nick Santoleri, Appointee (VP of Manufacturing & Strategic Sourcing, Rockline Industries)
  • C.K. Wong, Appointee (Chair, CEO, U.S. Pacific Nonwovens Industry Ltd.)

INDA’s Board of Directors convenes semi-annually and reviews INDA performance quarterly. The Executive Committee meets more frequently as issues arise between meetings. “INDA’s Board structure ensures leadership continuity and disciplined planning for advancing the interests of our members and industry,” said Dave Rousse, INDA President.

Posted March 15, 2018

Source: INDA, the Association of the Nonwoven Fabrics Industry

Freudenberg Will Be Presenting Innovative Solutions For Future-Oriented Markets At ANEX 2018

WEINHEIM, Germany / TOKYO, Japan — March 15, 2018 — Freudenberg Performance Materials and Japan Vilene Company, Business Groups of Freudenberg Group, will be presenting solutions for the energy, medical and automotive markets at the Asia Nonwoven Exhibition (ANEX) from June 6-8, 2018 in Tokyo. The broad product spectrum ranges from battery separators and laminates comprising hydrophilic PU foams and hydroactive nonwovens to acoustic pads for vehicles. Visitors will find Freudenberg and Japan Vilene Company on Stand 406.

Energy: increased efficiency and safety for energy storage

Redox flow batteries are in demand wherever large amounts of energy need to be stored over several hours while remaining ready for discharge at any time. A key aspect is optimizing efficiency. Freudenberg’s nonwoven electrodes with a unique three-dimensional fiber structure were specially developed to improve liquid circulation in redox flow batteries. These innovative electrodes feature a flexible design that enables them to be adapted to specific customer requirements.

One key to the success of e-mobility is providing more efficient and safer batteries. Freudenberg’s safety separator for lithium-ion batteries  consists of an ultra-thin PET nonwoven impregnated with ceramic particles. It remains stable at high temperatures and does not shrink. In comparison to conventional products, it is considerably less sensitive to mechanical penetration, particularly at high temperatures.

Increased vehicle range is another key to the success of e-mobility. The Japan Vilene Company’s Ni-MH HV battery separators have been designed to meet this functional requirement. They are characterized by high-temperature resistance, excellent safety performance and a rapid rate of charge/discharge.

Medical: advanced modern wound care solutions

Following the introduction of an MDI-based foam, Freudenberg Performance Materials has continued with the systematic expansion of its portfolio in this field. The company has now entered series production of ISO 13485-compliant laminates comprising hydrophilic PU foams and hydroactive nonwovens. The combination of these two components, foam and nonwoven, can achieve a significant improvement in the ability of wound dressings to absorb and retain exudate. Customers can choose between MDI- and TDI-based foams.

“scaffolene” – Freudenberg’s nonwoven fabric made from bioresorbable polymers is extremely versatile in both characteristics and applications. Flexible and tear-resistant when dry, it remains stable even when wet, maintaining its structure and avoiding clumping. During operations, the material can be easily and securely positioned in the right place in the body. The fabric eventually breaks down inside the body of its own accord, rendering a further treatment to remove the dressing unnecessary. In addition to its use in wound healing, scaffolene technology opens up new therapeutic possibilities within other medical fields, including bio-surgery and regenerative medicine.

Japan Vilene Company’s transdermal backing materials are both elastic and offer beneficial physical properties. By reason of the superior elasticity in both directions, they provide comfort to the wearer and a soft-touch feeling.

The company’s disposable respirators provide protection against particulate matter. They are national-assay-approved, offer high particle removal efficiency and ensure easy breathing in polluted environments.

Automotive: lightweight solutions for improved driving comfort

Good sound absorption in vehicles increases driver and passenger comfort. It also has a high priority in electric cars because electric drive trains cause less noise than combustion engines For this reason, other noise sources in different frequency ranges become more important. Freudenberg will be presenting innovative acoustic pads that provide outstanding sound absorption inside the vehicle. The light-weight pads help customers to save weight substantially and they are highly cost efficient. The pads are suitable for a wide variety of applications in the car such as door panels, headliners, trunk areas, wheel-houses and so on.

With their sophisticated design, Japan Vilene Company’s headliner facings improve wellbeing inside the vehicle. They are available in plain and multicolor patterned prints and have a smooth surface. Their  good formability makes its molding process easy.

Starting in 1980 with the founding of the first joint venture, Freudenberg and the Japan Vilene Company have been in close partnership for decades. Today, the two Freudenberg Business Groups Freudenberg Performance Materials and Freudenberg Filtration Technologies operate together with the Japan Vilene Company in a network of joint production and sales ventures throughout Asia.

Posted March 15, 2018

Source: Freudenberg Performance Materials Holding SE & Co. KG

NCTO Launches New Website “Textiles in the News”

WASHINGTON — March 15, 2018 — Today, the National Council of Textile Organizations (NCTO) launched Textiles in the News (TIN), a new website promoting the U.S. textile industry.  The website’s URL is http://www.textilesinthenews.org.

The first original content is an opinion piece by NCTO President & CEO Auggie Tantillo titled “Why NCTO Launched Textiles in the News.”

As part of NCTO’s American Textiles: We Make Amazing™ public relations effort to rebrand the U.S. textile industry, TIN’s mission is to showcase the dynamism of the U.S. textile industry and cover the policy issues that disproportionately impact the sector through:

  • Linking to the most relevant news and opinion pieces produced by other media outlets about or affecting the U.S. textile industry;
  • Generating original content, including news and opinion from U.S. textile industry leaders and policy experts; and
  • Tracking U.S. textile industry social media posts.

“While some may have an outdated perception of the U.S. textile industry, those working in the sector know it is a global powerhouse,” Tantillo said.

“As a national trade association representing domestic textile manufacturers, NCTO wants to make sure policymakers, business leaders, journalists, prospective workforce entrants and others have greater awareness of this crucial fact. This is the rationale behind creating TIN,” Tantillo continued.

Noting that trade press and international, national and local media outlets are posting compelling content daily about plant expansions, new products, innovation and policy issues important to the textile supply chain, Tantillo said, “NCTO’s Textiles in the News website is designed to make these exciting and informative developments easy to access, track and digest.”

“For those interested in U.S. textiles, and the extremely positive and pervasive impact our industry is making to better our lives, please visit TIN. NCTO trusts you will find the website compelling and informative,” Tantillo added.

“To the media, please keep generating great stories on the modern U.S. textile industry.  NCTO wants to drive readers to that content,” Tantillo finished.

NCTO is a Washington-based trade association representing the U.S. textile industry.

NCTO’s TIN website was built by AS Creative Services, a Rockville, Md.-based web design firm and its newsfeed is powered by Meltwater, an international provider of Media Intelligence.

Key facts about the U.S. textile industry include:

  • U.S. employment in the textile supply chain was 550,500 in 2017.
  • The value of shipments for U.S. textiles and apparel was $77.9 billion last year, a 16% increase since 2009.
  • U.S. exports of fiber, textiles and apparel were $28.6 billion in 2015.
  • Capital expenditures for textile and apparel production totaled $2.4 billion in 2016, the last year for which data is available.

Posted March 15, 2018

Source: The National Council of Textile Organizations (NCTO)

Technology Plays Key Role At Home Furnishings Manufacturing Solutions Expo

GREENVILLE, S.C. — March 13, 2018 —  The role of new technologies in the making of furniture and home furnishings products will be front and center at the next Home Furnishings Manufacturing Sourcing Expo this summer.

The show, July 18-19 at the TD Convention Center in Greenville, S.C., is specifically designed for American producers of furniture and home furnishings products looking for the latest in manufacturing machinery, technology and services. It is the second annual event for the show and represents the first time it will be held in the Carolinas, convenient to the industry manufacturing centers.

Exhibitors showing off the latest technology in systems and machinery will be featured attractions at the show, according to Expo organizers. At last year’s inaugural event, attendees said such companies were a key reason for attending.  “We actually saw some things that excited us very much in the auto cutting exhibits,” said an attendee from Jackson Furniture Industries. “We saw a 3D-CAD program that was very impressive, and we are actually looking at making a purchase in that area.”

Among the technology-oriented companies already signed up to exhibit are Clarity Web Solutions, the Global Systems Group division of Leggett & Platt and SoftWear Automation.

The latter company, showing for the first time, will be bringing its fully automated robotic worklines that can be used for home goods as well as apparel and footwear.

According to Pete Santora, chief commercial officer for the Atlanta-based firm, SoftWear Automation will be showing its new “VR (virtual reality) lab using the HTC Vive headset that allows attendees to step into a facility and operate a to-scale virtual model of our workline for bath mats.”

SoftWear Automation will also be participating in the Exhibitor Presentations program, open to all Expo attendees.  Santora said a key reason for exhibiting this year was the chance to show off its new systems. “Our worklines are expected to produce more than 30 million pieces for retail by the end of 2018 and we’ve very excited to meet the industry innovators in attendance.” The opportunities for domestic manufacturing are a prime driver for SoftWear Automation. “The ‘Sewlocal’ movement is part of our thought leadership and we’re committed to helping develop local supply chains and using our worklines to do it.  “The industry has some challenging business model questions to tackle,” he continued. “I think many will focus more resources on supply chain and design for manufacturing initiatives.

“This year is going to be a great year for SoftWear and U.S. textile manufacturing will see another spike in growth.”

Registration is now open. For a complimentary pass, visit hfmse.com, click the registration button and enter promo code MyGuest.

More information on exhibiting and attending the HFMS Expo is available at hfmse.com or by contacting Lorie Gross, show director, at 404-449-4227, lorie.gross@expodevco.com

Posted March 13, 2018

Source: Exposition Development Co.

Thorlo Launches Lightest Running Sock For The Modern Day Runner

STATESVILLE, N.C. — March 12, 2018 — Today, Thorlo Inc. launched a Kickstarter campaign for the new Experia® ProLite running sock, which is 30-percent lighter than leading ultra-light running socks. Thorlo has been a leader in the sock industry since the 1980s, but the new Experia ProLite running sock represents the evolution in Thorlo’s engagement with the next generation of athletes.

“We partnered with Next Fiber Technology to offer something completely new and exciting through crowdfunding,” said Thorlo’s Founder Jim Throneburg. “We took our original form-fitting, ultra-light sock frame and made it better by minimizing the ball and heel cushioning to a little more than 0.3 cm. by using a yarn technology called NanoGLIDE®, which is provided by Next Fiber Technology. The result is a cushion platform for your foot that virtually eliminates the chance of gait-changing chafing, moisture build-up and blisters. Launching this new and innovative product through crowdfunding will introduce the Thorlos® brand to a new generation of runners who deserve to achieve their personal best.”

While this NanoGLIDE technology is engineered to reduce friction, increase durability, wick sweat and dry quickly to aid in the prevention of blisters and hot spots, the padding density in Experia ProLite varies strategically throughout the sock to optimize performance requirements for serious runners. Together, these technologies create the highest performance, bio-environment for a runner’s foot.

The running socks also feature the Thorlos famous heel and ball padding that absorbs shock and reduces pressure and impact, preventing sore feet following a run. Ventilation panels are strategically placed throughout each Experia ProLite sock to help maintain air circulation and move moisture around the foot to keep the feet cool, but never wet.

The new Experia ProLite socks are currently available on Kickstarter in a variety of colors at a discounted price starting at $8, which is 50 percent off, for one pair. For more information about Experia® ProLite, visit the Kickstarter campaign page at bit.ly/ExperiaKS.

Posted March 13, 2018

Source: Thorlo

Arkema Announced Expansion Of Terra Firma’s North America Distribution Territory For Orgasol® And Rilsan® D Coating Additives

KING OF PRUSSIA, Pa. — March 12, 2018 — Arkema announced the expansion of the geographic distribution territory of Terra Firma for the Orgasol® and Rilsan® D products for coating additive applications, effective February 1, 2018.  Terra Firma’s distribution territory will now extend from the mid-Atlantic to the southwestern United States. The expansion includes the states of Louisiana, Arkansas, Oklahoma, Texas, New Mexico, and Colorado.

The Orgasol and Rilsan D products are high performance coating additives, designed mainly for liquid and UV coatings. Based on Arkema’s specialty polyamide chemistry, these high performance additives improve multiple performance aspects of the formulation, such as abrasion resistance, chemical resistance, gloss reduction, hardness, and also texture creation. These products are used in multiple market segments, such as coil, wood, automotive, electronics, and transfer paper.

Terra Firma is a specialty coating materials distributor, formed at the end of 2017 by the acquisition of D&F Distribution and DN Lukens by Dunleary Inc. Accounts in the region currently serviced directly by Arkema will continue in the same manner. “The Dunleary organization has done an outstanding job promoting these high performance products since 2009,” commented Josh Gingras, North American Business Manager. “The creation of Terra Firma enables us to build on the success realized by Dunleary with the Orgasol and Rilsan D product ranges to another geographic region. We are very excited by the expansion of Terra Firma’s geographic responsibilities”.

John Behan, Executive Vice President of Terra Firma added: “The Orgasol and Rilsan D products are a natural fit with our organization’s sales expertise. We look forward to growing the business with Arkema throughout our distribution territory.”

Posted March 13, 2018

Source: Arkema

New Clinical Trial Confirms DermaTherapy® Reduces Number Of Pressure Injuries In Intensive Care Units

CINCINNATI, Ohio — March 13, 2018 —  Standard Textile and Precision Fabrics Group announce results from a clinical trial evaluating DermaTherapy® technology, published in the November 2017 issue of the American Journal of Critical Care. Authors of the study from Michigan Medicine, the academic medical center of the University of Michigan, concluded: “The use of specialty linens in addition to standard techniques for preventing pressure injuries can help prevent pressure injuries from developing in high-risk patients in intensive care units.” (American Journal of Critical Care. 2017; 26: 474-481)

DermaTherapy is the first and only silk-like therapeutic bedding linens to receive FDA 510(k)1 clearance as a Class I medical device that helps to reduce the likelihood of patients developing pressure injuries. Nearly 4,000 patients were included in the evaluation of DermaTherapy on the rate of pressure injuries (PIs) in high-risk patients in the cardiovascular and surgical intensive care units at the University of Michigan hospital in Ann Arbor, Mich.

According to the study, the 46-percent reduction of posterior PIs led to a potential cost savings for the health system of nearly $4 million. The article states that “cost savings more than covered the increased cost of the specialty linens.” In addition, Michigan Medicine’s laundry manager, Rolando Croocks, indicated in the article that the specialty linens have withstood “repeated use and laundering for 3 times longer than cotton linens.”

In the study, the researchers state: “Overall, we noted significant reductions in posterior PIs, supporting the theory that addressing microclimate can help reduce the occurrence of PIs.” DermaTherapy therapeutic bedding addresses the patient’s microclimate by reducing shear and friction, and controlling moisture and heat.

With two U.S. patents (US 7,816,288 and US 8,283,267) and two pending patents, the DermaTherapy system is comprised of a pillowcase, top flat sheet, bottom fitted sheet and underpad, all developed in partnership between Standard Textile Co., Inc. and Precision Fabrics Group. DermaTherapy is a registered trademark of Precision Fabrics Group Inc.

DermaTherapy also has FDA clearance2 for use in the treatment of atopic dermatitis by patients who are susceptible to or may have mild atopic dermatitis, the most common form of eczema.

1FDA 510(K) Clearance No. K152884. Indications for Use: Bed linens made with DermaTherapy fabrics are intended for use by patients 18 years of age and older in hospital settings who are susceptible to pressure ulcers. The DermaTherapy Bed Linens help to reduce the likelihood of patients developing pressure ulcers by reducing moisture, friction and shear on the patient’s skin.

2FDA 510(K) Clearance No. K061242. Indications for Use: Institutional Bedding (bed sheets and pillow cases) made with DermaTherapy fabrics is intended for use by patients in a hospital, healthcare or home setting who are susceptible to or may have mild atopic dermatitis.

Posted March 13, 2018

Source: Standard Textile

Rieter: Financial Year 2017

WINTERTHUR, Switzerland — March 13, 2018 —  A significant increase in order intake and order backlog at the end of the year marked the 2017 financial year. In terms of sales, Rieter posted a slight increase. The EBIT margin before restructuring charges was 5.4%. Despite special effects, the company’s dividend policy and solid financial position allow the payment of an attractive dividend. Therefore, the Board of Directors proposes to the shareholders to leave the dividend unchanged at 5.00 Swiss francs.

Rieter posted an order intake of 1,051.5 million Swiss francs in the 2017 financial year. This represents an increase of 16% compared to the previous year (increase of 146.3 million Swiss francs). Thus, the upturn that began in the first half of 2017 continued. At the end of 2017, Rieter’s order backlog was some 100 million Swiss francs higher than the previous year at around 540 million Swiss francs (December 31, 2016: around 440 million Swiss francs).

At 965.6 million Swiss francs, total sales were 2% higher than the previous year (2016: 945.0 million Swiss francs). Compared to sales of 415.2 million Swiss francs in the first half year, Rieter posted strong growth in the second half year to 550.4 million Swiss francs, due in particular to a large increase in deliveries in the Business Group Machines & Systems and the acquisition of SSM Textile Machinery. Thanks to a global presence and a comprehensive product and service portfolio, Rieter again achieved a market share of around 30%.

EBIT Margin, Net Profit and Free Cash Flow

The 2017 financial year was characterized by improved profitability in the Business Group After Sales and weaker, volume-related results in the Business Groups Machines & Systems and Components. With slightly higher sales than in the previous year, Rieter recorded an EBIT margin (before restructuring charges) of 5.4% or 51.8 million Swiss francs (2016: 6.0% or 56.5 million Swiss francs). The restructuring charges amounted to 36 million Swiss francs. These are associated with the reorganization of the Ingolstadt location (Germany). Consequently, at 13.3 million Swiss francs (1.4% of sales), the net profit is considerably lower than in the previous year (42.7 million Swiss francs or 4.5% of sales). Free cash flow amounted to -101.3 million Swiss francs, mainly due to the cash outflow of 100.2 million Swiss francs for the acquisition of SSM Textile Machinery and the demand driven increase of net working capital. The equity ratio as of December 31, 2017 was 43.6% (December 31, 2016: 46.2%).

Sales by Region

In the Asian countries (excluding China, India and Turkey), Rieter increased sales in the reporting year by 11% to 319.1 million Swiss francs. At 184.0 million Swiss francs, a good level of sales was achieved in China, despite a slight decline of 1%. Sales in India fell by 5% to 173.8 million Swiss francs. This development is attributable in particular to lower sales of technology components. Sales in Turkey fell by 16% to 100.1 million Swiss francs in 2017, mainly due to the sluggish order intake for new machines in the first half of the year.

Orders in the USA and Brazil led to sales of 114.7 million Swiss francs in the North and South America region, an increase of 32%.

Business Groups

In terms of sales, the Business Group Machines & Systems posted a slight decline to 589.5 million Swiss francs (2016: 603.4 million Swiss francs) and an EBIT (before restructuring charges) of 0.8 million Swiss francs (2016: 3.6 million Swiss francs). Order intake rose to 668.2 Swiss francs million (2016: 591.6 million Swiss francs).

The Business Group After Sales generated an EBIT (before restructuring charges) of 27.9 million Swiss francs (2016: 25.5 million Swiss francs) on sales of 146.3 million Swiss francs (2016: 141.6 million Swiss francs). With stable installation volume, growth was driven by spare parts and after sales services. Order intake in what continues to be a demanding market increased to 154.8 million Swiss francs (2016: 135.2 million Swiss francs).

The Business Group Components increased sales thanks to the acquisition of SSM Textile Machinery (49.1 million Swiss francs) to 229.8 million Swiss francs (2016: 200.0 million Swiss francs); at 30.8 million Swiss francs, however, the EBIT margin was lower compared to the previous year (2016: 35.1 million Swiss francs). The strong second half-year could not fully compensate for the first half-year. The order intake was significantly higher than the previous year at 228.5 million Swiss francs (2016: 178.4 million Swiss francs), with the acquisition of SSM Textile Machinery contributing CHF 42.5 million to this positive growth from the second half of the year.

Improvement Program STEP UP

Rieter also forged ahead with the improvement program STEP UP in the 2017 financial year. Strengthening innovative capacity and the after sales 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. In 2018, 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 49.2 million Swiss francs (2016: 48.0 million Swiss francs).

Rieter places a further priority on 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, the 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 reductions of more than 15 million Swiss francs 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.

Dividends And Dividend Policy

At the Annual General Meeting on April 5, 2018, as in the previous year the Board of Directors will propose a dividend of 5.00 Swiss francs. The company’s dividend policy allows a payout ratio of at least 40% of net profit. Rieter’s solid financial strength allows the pay-out of an attractive dividend even with one-off special charges.

Changes in Group Executive Committee

As of April 6, 2017, Serge Entleitner, as a member of the Group Executive Committee, took over the management of the Business Group Components. This group was previously managed by Werner Strasser, who has retired.

Board of Directors and Annual General Meeting

At the Annual General Meeting held on April 5, 2017, shareholders approved all motions proposed by the Board of Directors. They elected two new members to the Board of Directors, Carl Illi and Luc Tack. The members of the Board of Directors: Roger Baillod, Bernhard Jucker, Michael Pieper, This E. Schneider, Hans-Peter Schwald and Peter Spuhler were confirmed for a further one-year term of office.

Chairman of the Board of Directors Erwin Stoller was no longer available to stand for re-election. The general meeting elected Bernhard Jucker as Chairman of the Board of Directors. This E. Schneider and Hans-Peter Schwald, the members of the Remuneration Committee who were standing for election, were also each re-elected for a one-year term of office. Chairman of the Board of Directors, Bernhard Jucker was elected as a new member of the Remuneration Committee.

Outlook

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.

Thanks
On behalf of the Board of Directors and the Group Executive Committee, we wish to thank all Rieter employees for their dedicated commitment in the year 2017. We also offer our heartfelt gratitude to our customers, suppliers and other business partners for your loyalty to our company – and to the shareholders for their confidence.

Posted March 13, 2018

Source: Rieter

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