The Rupp Report: More Details On The Business Year 2014 For Rieter

Some weeks ago, the Rupp Report informed its readers about initial financial results for the year 2013-14 from Switzerland-based Rieter Group. Last week, the company’s annual press conference took place in Winterthur,Switzerland, and here are some more details of the financial results:
 

Orders Received And Sales
New orders received by the Rieter Group reached the level of sales in 2014. Compared to the strong previous year, orders received decreased by 9 percent to 1146.1 million CHF (2013: 1259.4 million CHF). A large number of orders came from Asian countries, where spinning mill capacities were built up to supply the Chinese textile markets, from Turkey and the US. The positive trend in India continued throughout the year. In China, demand was subdued, as in the previous year. In the favorable market environment of the first half of the year, Rieter recorded significantly higher order intake than in the more challenging second half. The decline in the second half of the year was mainly attributable to lower orders from Turkey and China. At Spun Yarn Systems, orders received decreased in the year under review by 10 percent to 973.8 million CHF, compared to the previous year (2013: 1084.3million CHF). Textile Components almost equaled the previous year’s level, with orders of 172.3 million CHF (2013: 175.1 million CHF).
 
As expected, sales by Rieter developed strongly in the year under review and increased by 11 percent to 1153.4 million CHF (2013: 1035.3 million CHF). In the second half of the year, sales increased by 21 percent compared to the first half. Rieter reported the highest increase in the US, followed by Turkey, India and various Asian countries. In contrast, sales in China and Africa decreased compared to the previous year. Spun Yarn Systems increased sales by 14 percent to 981.0 million CHF (2013: 857.8 million CHF). Premium Textile Components posted sales to third parties of 172.4 million CHF (2013: 177.5 million CHF).
 
… Rieter also posted a significant increase in net profit to 52.9 million CHF, which was 41 percent higher than in 2013 (37.4 million CHF). The profit margin improved from 3.6 percent to 4.6 percent of sales. Net financial result of -13.7 million CHF was slightly lower than in the previous year (-7.9 million CHF).”

 
Medium-Term Financial Targets
Rieter has reassessed the global market environment and reviewed the company’s financial targets. With its medium-term profitability target of an EBIT return of some 10 percent of sales and a return on net assets (RONA) of some 14 percent, Rieter claims to achieve its profitability target in the medium term with sales of some 1.3 billion CHF. The yield for 2014 last year up to 7.3 percent compared to 5.8 for 2013, however, the target is 10 percent, said Rieter’s CEO Dr. Norbert Klapper.
 
A New Distribution Network
An important benchmark for the success of a spinning machinery manufacturer is the spindle equivalent shipment. Substantially supported by expanded capacity in Asia, Rieter delivered a record volume of some 2.33 million spindle equivalents in the year under review (1.84 million in 2013). Deliveries of extensive full compact, ring and rotor spinning system installations made a decisive contribution to this success. Rieter was able to increase this by 27 percent compared to last year. As success drivers, Klapper mentioned first of all to be a full system provider, the strong sales and distribution network around the globe, innovations and an increased production capacity after the investment program started 2012 along with ring spinning systems available in China. The Swiss also recorded an increased market share from 26 to some 30 percent.
 
The Target
The change in the financial policy of the Swiss National Bank had also some influences on the profit of Rieter. Nevertheless, CFO Joris Gröflin mentioned that the production costs further decreased thanks to strong activities and favors the net profit. Though, the company started a new short time program to further decrease the costs with a stop of employments in Switzerland, and some discounts on the supplier side. It is the target of Gröflin to further decrease purchases in Swiss Francs to avoid further costs. Rieter invoiced 53 percent of its sales in Swiss francs during the 2011 financial year. However, the 2014 financial year was as follows: 40 percent of sales in Swiss francs, 37 percent in euros and 23 percent in US dollars and local currencies.
 
More recently, Rieter has invested strongly in Chinese and Indian markets as well as expanding its capacities in the Czech Republic. Accordingly, Gröflin informed that the workforce increased by 4 percent, from 6003 up to 6225, mainly in China and the Czech Republic. To balance the volatile markets the share of part-time workers is now 19.6 percent.
 
Particularly proud is Joris Gröflin about the strong free cash flow (See Table 1). He claims that this was because of higher profitability and lower capital expenditure. Despite the small increase in net working capital of 9.9 million CHF and capital expenditure of 42.2 million CHF, Rieter recorded free cash flow of 49.1 million CHF as a result of the increase in earnings.
 
Table 1: Free cash flow

CHF million 2014     2013   
Net profit 52.9 37.4
Interest expense 10.7 14.0
Tax expense 18.4 15.1
Depreciation and amortization 40.8 35.0
+/- non-cash items/disposible gains 4.9 -12.4
+/- change in NWC and provisions -13.2 46.1
+/- interest paid/received (net) -6.2 -11.5
+/- taxes paid -18.7 -16.0
+/- capital expenditure, net -41.1 -49.5
+/- change in other financial assets 0.6 2.9
Free cash flow 49.1 61.1

 
Strategic Focus
During the 2012-13 period, Rieter started a large-scale strategic investment program. The group moved forward with expansion in Asia, innovation and the improvement of global business processes. The 2014 financial year showed that the extensive resources deployed had been effectively utilized. And how does Rieter sees the future? We have our clear strategic focus, said Klapper. Profitability is the big issue. We are the world’s leading supplier of short staple spinning systems, and the customers appreciate the fact that we can fine-tune every component up and down the whole production chain. After sales service is probably the key point of all activities with a perfect service. That’s why the after sales service was organized into a separate After Sales Business Group on January 1, 2015.
 
Outlook
In his outlook, CEO Klapper mentioned certain insecurity among the customers, because some currencies such as the Indian Rupee, China’s Renminbi, the US Dollar, the Euro and the Swiss franc are in very volatile positions. On top of that China is slowing down. “However, I’m certain that China’s will be back in the near future, but not on the same level as before,” Klapper said. Reasons for that are new general conditions that are better to handle for the Chinese spinners. According to Klapper, the high cotton stocks in China have no influence on the business in Switzerland. Regarding prices in Swiss Francs, these are very much influenced by suppliers from the Euro zone.
 
China
Though, no customers that have an order in progress have cancelled it. The reason for that is that Rieter granted some low single-digit discounts. And how is Rieter defending itself against copycats? “Well, as mentioned before, we have to strengthen our after sales service and that the customers don’t even think of going elsewhere,” said Klapper. “We also offer some upgrade packages for competitive prices, which is very much appreciated by our clientele. And I’m very proud to say that we won for the first time a case against piracy of products in China.
 
“What we really see, and the reasons for that a very much know, is the fact that China is changing more and more to sophisticated machinery instead of less automated equipment. And the better the equipment the more one needs high-level spare parts.”
 
Promising 2015 (?)
Rieter closed 2014 with an order backlog of approximately 730 million CHF, demonstrating the global strength of the company and its brands. In January and February, the After Sales and Components business saw order intake on last year’s levels, as spinning mills continue to order upgrade kits, components, and wear and tear parts. Demand in the Machines & Systems business has so far been below last year’s levels. This is perceived to be the result of the currency driven uncertainties in the market and the low demand in China. The group expects sales in the first semester 2015 to be around the level of the first semester of 2014. The full year 2015 is currently expected to show lower sales volumes than 2014 due to the slower order intake at machines & systems.

March 24, 2013

Biovation Launches Bioarmour™ Blood Pressure Cuff Shield, An Infectious Disease Barrier Product For Hospitals And Healthcare Facilities

BOOTHBAY, Maine — March 24, 2015 — Biovation has launched the BioArmour Blood Pressure Cuff Shield (BPCS) to mitigate the spread of infectious pathogens from blood pressure cuffs. This first-in-class medical product offers a multi-use barrier for prevention of hospital acquired infections (HAIs). The BPCS has been designed, tested and validated over a two-year cycle, and is now available in European, Canadian and all non-US markets. BioArmour is the first in a suite of infection and pathogen control products from Biovation.
 
Biovation is a technology design and manufacturing company that produces advanced, nonwoven fiber products with integrated antimicrobial properties for packaging, healthcare, specialty niche roll goods and wipes products and other specialty advanced material end products. BioArmour was developed and tested in close collaboration with a large hospital system to proactively provide solutions for the mitigation of HAIs.
 
The easy-to-use BioArmour BPCS is a disposable antimicrobial hygienic barrier that attaches to the blood pressure cuff to prevent direct contact of the cuff with the patient’s skin. The latex-free shield material is composed of a sustainable biopolymer impregnated with antimicrobial and antifungal agents to mitigate the propagation of a wide spectrum of pathogens in controlled release fashion. Contaminant pathogens – including MRSA, VRE, c. difficile and others – are mitigated by the blood pressure cuff shield, allowing for multi-patient use over a 24-hour period.

In lab testing, the BioArmour BPCS has been shown to kill up to 99.99-percent of tested microorganisms.  The BPCS is manufactured with green technology and a sustainable biopolymer, with an industry-leading 74-percent biocontent.  Its slim profile does not adversely impact accuracy of the blood pressure measurement data.  And, the BPCS provides another tool for risk mitigation for hospitals and healthcare facilities with proactive measures for infectious disease reduction and control.  This cost-effective system requires no staff maintenance or disinfection between patients and is targeted for in-patient, physician offices, hospice and nursing home facilities and emergency medical services.

“Our BioArmour Blood Pressure Cuff Shield is a proactive measure that helps hospitals and healthcare facilities support their infectious disease reduction and control efforts,” says Biovation Chief Executive Officer Kerem Durdag. “It is an easy-to-use and cost-effective tool that contributes to patient health and safety. The proprietary manufacturing technology we have employed sets a benchmark for our products in our pipeline.”
 
Sciessent partnered with Biovation to develop the antimicrobial technology. “The BioArmour Blood Pressure Cuff Shield infuses our world-class antimicrobial solutions into Biovation’s biopolymer fibers to result in a safe, non-leaching product with broad-spectrum efficacy,” says Lise Moloney, Director of Business Development – Healthcare, Sciessent. “We’re proud to have partnered with Biovation to bring this industry-leading product to market.”
 
The BioArmour BPCS has been registered a CE Class I medical device marked for distribution in the EU.  As a medical product, it is available for sale in Canada and all other non-US countries.  It is currently undergoing testing for US FDA approval, which is anticipated to be received in late summer 2015.

Posted March 24, 2015

Source: Biovation
 

TAPPI Announces 2015 Process And Product Quality Division Award Recipient

ATLANTA, Ga. — March 23, 2015 — TAPPI is pleased to announce the recipient of the 2015 Process and Product Quality Division Leadership and Service Award is Don Guay, Technical Manager at Verso Corp. This award recognizes Guay’s outstanding leadership and exceptional service to the Process and Product Quality Division, which had resulted in significant and demonstrable benefits to members.

“I am honored to be nominated and selected by my peers in the P&PQ division for this award, said Guay. “I have been an active TAPPI member since 1994 and TAPPI has always added value to my professional career development through both industry connections and technical information. I have met so many wonderful people through TAPPI including members and staff who I truly enjoying working with to ensure the Pulp & Paper Industry continues its tradition of excellence.”

Guay graduated from the University of Wisconsin Stevens Point with a Bachelor’s of Science in Paper Science. He subsequently obtained his PhD in Chemistry from the University of Maine. He began his career as a process engineer at Marathon Engineering and is currently Technical Manager for Verso Corporation at the Wisconsin Rapids Mill.

TAPPI congratulates Mr. Guay and will honor him at the PaperCon Awards Dinner on April 21 in Atlanta.

Posted March 24, 2015

Source: TAPPI
 

Fibertec Introduces FIBERTEC® GreenGuard RT PFC-free Waterproofing Product

MUNCHEN, Germany — March 18, 2015 — Germany-based Fibertec takes another giant leap forward in environmentally friendly DWR products for waterproof, breathable clothing: the new GreenGuard RT does not require heat activation. Selfactivating at room temperature, it therefore saves an energy intensive drying cycle. This is both practical and good for the environment. The unique patented PUR active ingredient is biodegradable (no PFCs).

Fibertec aims to have the most environmentally friendly cleaning, care and waterproofing products possible – including packaging, goods and application. With regard to the latter, Fibertec has achieved a distinct further development with GreenGuard RT. RT stands for “room temperature”, because room temperature is sufficient to activate this new DWR-product. It achieves a spray rating (i.e. how water repellent the material) of 85! It is no longer necessary to use a tumble dryer, hair dryer or iron on the clothing. Simultaneously practical and resource-efficient. Yet, quickly heating the garment in the tumble dryer or using an iron will ensure maximum performance from GreenGuard RT.

The new active ingredient used exclusively by Fibertec is environmentally friendly and not hazardous to health. This water-based, biodegradable product does not use perfluorocarbons (PFCs) but instead uses polyurethane dendrimers. Fibertec managing director Guido Augustiniak explains: “This innovation has given us an excellent alternative to fluorine-based DWR products. In comparison to the currently available GreenGuard, Green Guard RT offers an increased water repellent effect and a higher durability. Regular application greatly prolongs the performance and durability of waterproof, breathable clothing, while the product can be used with a clear conscience.”

GreenGuard RT is bluesign® approved and “Made in Germany” (product and packaging). It is suitable for all waterproof, breathable textiles and is available as Spray-On (500 ml trigger spray bottle without propellant) or Wash-In (250 ml bottle) at a recommended retail price of 14.95 euro. The spray-on is better suited to breathable clothing as the waterproofing is only applied externally. Conversely, the wash-in is easier to apply.

Posted March 24, 2015

Source: Fibertec
 

Chinese Government Reforms Trigger ‘significant Opportunity’ For Brands To Help Build Stronger Supply Chain

LONDON — February 26, 2015 — CottonConnect says the shifting cotton market in China offers a valuable window of opportunity for international companies to invest and build a more resilient cotton supply in one of the world’s fastest growing cotton markets.
 
In a new report from Cotton Connect, ‘China’s Cotton: A Growing Market Opportunity’ the organisation outlines the urgency of taking action at both a strategic and farm level.  It says that by leveraging technical, financial and political support for the industry – as well as providing urgent  support at the farm level – brands and retailers have a chance to show leadership in building sustainable cotton interventions to help build a successful supply chain in China.
 
Chinese government subsidy reforms last January triggered the latest downward shift in prices for cotton, which fell by around 60% to 13,605 yuan (roughly £1,417) per tonne during the last nine months of 2014, according to the latest China Cotton Association’s price index.
 
China is now the world’s largest producer, importer and consumer of cotton, holding around 58% of the world’s total stockpile of the raw material (International Cotton Advisory Committee).  Since China’s accession to the World Trade Organization in 2001, its textile and apparel exports have grown by 50% and the nation has doubled its share of global exports in less than a decade, to around 25% (Global Trade Analysis Project).
 
However, at farm level, cotton is fast-becoming a less appealing crop for farmers, plantings are predicted to fall 6% to 31.6 million hectares across China by 2015-16, according to ICAC, if intervention does not happen.
 
CottonConnect warns that more support is needed for smallholder cotton farmers across the country as they continue to grapple with environmental, economic and social challenges. On top of falling prices, growers are also struggling with changing rural demographics, an emerging water crisis, rising labour costs and a lack of access to credit and financial literacy.
 
Alison Ward, CEO, CottonConnect, said:
“As the biggest market for cotton in the world, international brands have a vested interested in ensuring that the market and supply chain is thriving.  The Chinese cotton industry has reached a pivotal point.  
 
“There is a growing need – and a huge opportunity – for international and leading Chinese brands to support the cotton sector in this time of transition by showing leadership, collaborating with others and investing to help build a more sustainable cotton industry for the future.”
 
Thanks to falling cotton prices, brands and retailers have a significant and strategic opportunity to show leadership by improving relationships with cotton farmers on the ground and sharing best practice in basic agricultural techniques and technologies in China’s key cotton-growing regions.
 
REPORT HIGHLIGHTS
 
Strategic and Practical Opportunities for Brands.  The key opportunities outlined in the report are:
 
At a strategic level:
 
More competitive cotton prices in China, with the change in government subsidy leading to Chinese cotton prices falling in line with international prices, after sustaining a 30% premium for many years, markets are opening for international brands.
High quality cotton with strong downstream infrastructure, means China still retains an edge on quality and efficiency. A cheaper, better quality cotton both sourced and processed in China could create greater efficiencies for global brands sourcing from, and selling to, the China market.
Greater sustainability becoming a licence to operate, with China’s 12th Five Year Plan setting out clear expectations for cleaner, greener growth in the textile sector, greener and more productive agriculture, better water protection and rural regeneration. Opportunities for brands to demonstrate leadership and safeguard your licence to operate in China. 
At a farm level
 
Support for farmer finance and literacy. Brands and their suppliers should conduct a needs-assessment of priority cotton communities that can inform the subsequent development of financial interventions. For example, modules for financial training or micro-finance tools, such as loans or crop insurance protection.
Support for effective water management. Brands should be seeking to understand and address water issues at a farming-community level as a priority. This might include mapping water footprints at farm level or developing training focused on behaviour change.
Encouraging rural entrepreneurship in cotton communities. An opportunity exists to support ‘left behind’ children and young adults affected by cotton migration. 
CottonConnect – which connects retailers to suppliers and cotton farmers on the ground by building transparency, sharing best practice and improving farmer livelihoods – believes that now is the time for international and Chinese brands to step up to help secure a sustainable future for the industry in China.
 
CottonConnect has worked with 130,000 cotton farmers and their families in China, India and Pakistan, proving that basic interventions can make a huge difference to the livelihoods of cotton growers.  The organisation has collaborated with major brands, including Primark, John Lewis and C&A Foundation, to help improve the resilience of cotton supply chains in cotton-growing regions across the developing world.

Posted March 24, 2015

Source: CottonConnect

Alexium Negotiates Exclusive Agreement With Leading U.S. Outdoor Fabric Manufacturer

COTTESLOE, Australia — March 23, 2015 — Alexium is pleased to announce an exclusive agreement to supply Alexiflam-SYN to a leading outdoor fabric manufacturer to treat tenting fabric. Tents sold in the U.S. must pass NFPA 701 flammability, and several states have added additional requirements and have mandated that the treatment be environmentally-friendly. Alexium’s Alexiflam-SYN FR treatment for synthetic fabric is a durable and eco-friendly solution that is also compatible with high performance water repellency treatments commonly used in the tenting industry. This combination of water repellency and flame retardancy is not something currently offered in the market, and Alexium is in a unique position to provide an effective FR treatment that is also eco-friendly, a quality that will resonate with customers and end-users. The outdoor fabric market values durability and environmental responsibility, and Alexiflam-SYN can also be used in other end-uses such as marine fabrics and outdoor upholstery. Alexium is currently negotiating the joint pricing and marketing strategy to include a co-branding campaign which would increase Alexium’s brand awareness as well as exposure and product validation, and we will keep the market updated as the agreement is finalized.

Kind Regards,

Nicholas Clark
Chief Executive Office & Executive Director
Alexium International Group Limited
(US Cell)  +1 864 991 6687
(AUS Mobile)  +61 432 412 663

Corporate Headquarters
PO Box 512, Cottesloe
WESTERN AUSTRALIA, AUSTRALIA 6911
 

Xennia Launches Advanced Digital Textile Ink For Polyamide Printing

LETCHWORTH, United Kingdom — March 18, 2015 — Xennia Technology today launches a full range of digital textile inks for production printing of silk and polyamide fabrics including nylon and lycra/elastane/spandex. Xennia Agate™ offers excellent colour and fastness performance combined with production reliability.
 
The Xennia Agate range of digital textile inkjet inks is designed for high quality polyamide fabric printing, aimed at sports, swimwear and intimate apparel applications. Xennia Agate is available for high speed production digital textile printing systems based on Kyocera KJ4B printheads.
 
“Xennia Agate is a high performance ink designed for polyamide textile decoration,” comments Dr Olivier Morel, Xennia’s Chief Technology Officer, “which uses specifically tailored dye chemistry to give customers excellent colour vibrancy and fastness performance, while maintaining the high production reliability that customers expect from a Xennia product. After testing in their mill, one customer in South America described the results as ‘absurdly better’ than those from their previous ink supplier, showing the real benefits from choosing Xennia ink.”
 
Dr Tim Phillips, Marketing Manager, adds: “While smaller than the cellulosics market, the silk and polyamide markets are important ones with stringent quality requirements, which makes them ideal for Xennia. Adding Xennia Agate to our expanding range allows us to help a wider audience of customers looking for high quality digital textile ink products.”
 
Xennia is a leading supplier to the digital textiles industry and its high quality ink products have been deployed in major textile mills worldwide for several years. Xennia digital textile inks enable printers to add value for their customers by creating high colour fabric prints with minimised materials, energy and water usage. Xennia’s digital textile ink range includes Xennia Amethyst™ reactive dye ink for printing cotton and cellulosics, Xennia Corundum™ sublimation ink for polyester and Xennia Moissanite™ UV curable ink for outdoor textile printing.
 
Posted March 24, 2015

Source: Xennia
 

Rockline Industries Wins Manufacturer Of The Year Award

SHEBOYGAN, Wis. — March 24, 2015 — Rockline Industries, a private-label manufacturer of consumer wet wipes and coffee filters, was recently awarded Manufacturer of the Year by the Sheboygan County Chamber for job creation, community investment and growth.
 
From 2013 to 2014, Rockline executed the two biggest capital projects in the company’s history, which were completed on time and fostered production growth.
 
Rockline has increased its revenues in the past two years and has added nearly 250 jobs in the past three years in Sheboygan County. Rockline continues to invest in new community assets, and it volunteers for an extensive list of community non-profits.

“We believe our company’s dedication to employees and community are what sets us apart,” said Randy Rudolph, president of Rockline Industries. “We are grateful for this award and the recognition of those values.”
 
Rockline participated in a Sheboygan County awards ceremony last month.

Posted March 24, 2015

Source: Rockline Industries
 

attune Launches Portfolio Of Solutions To Sense, Predict And Synchronize Response To Consumer Demand

BURLINGTON, Mass. — March 24, 2015 — attune Consulting today announced its Fashion Innovation Portfolio, a set of business solutions that help fashion companies better align resources and global supply chain partners to predict and dynamically respond to changes in consumer demand. Led by fashion industry veteran Marshall Gordon, attune’s chief innovation officer, the team will combine its years of fashion industry expertise to help retailers and fashion brands improve their ability to fulfill omnichannel consumer demand by leveraging the latest advances and combinations of cloud, mobile, big data analytics and multi-tier supply chain collaboration technologies.
 
“The demands of today’s digital consumers are accelerating beyond the ability of fashion brands to effectively respond with aging technology,” said Vajira De Silva, CEO of attune. “Brands are eager to use the latest technology tools to close the gap, but they’re often deployed in silos, providing only incremental improvements. We see a critical need for expertise that can create more holistic and responsive global supply chains. attune’s Fashion Innovation Portfolio combines this expertise with a set of highly integrated solutions that are targeted to the needs of fashion.”
 
attune’s Fashion Innovation Portfolio focuses specifically on synchronizing supply with demand to deliver responsive fashion – or real-time “sense and response” networks that capitalize on fast-moving fashion markets and consumers. Through these solutions, retailers and fashion brands can gain deep insight into consumer behavior and extend that knowledge across their supply chains in real time to fulfill demand exactly when and where it’s needed, and significantly reduce out-of-stocks and markdowns. The portfolio includes integrated solutions for:
 

  • Operations: Providing a consolidated infrastructure that unites wholesale, manufacturing and retail businesses on a single platform to create cross-channel, integrated operations.
  • Customer Intimacy: Combines real-time analysis of structured and unstructured customer data to deliver insights that provide a platform for high-touch, personalized “clienteling” to fashion consumers.
  • Value Chain Synchronization: Providing end-to-end visibility from consumer demand to planning and sourcing to facilitate response to current and future demand.

 
“The fashion industry has been built on a global network of independently operating businesses and processes,” said Gordon. “Fashion brands and retailers know there is value in synchronizing them, but technologies are only now beginning to mature to a point where they can be combined in real time to respond to consumer demand. We see a significant opportunity for brands and retailers to be more responsive while also improving their financial performance with end-to-end solutions that sense consumer behavior and incorporate that intelligence into planning and extended supply chain operations. In essence, this enables companies to respond to demand as it is happening.”
 
With more than two decades of fashion and lifestyle technology leadership, Gordon oversees attune’s solution strategy, roadmap and technology portfolio. Prior to attune, he was the senior vice president of worldwide sales, marketing and product strategy at Tradecard (now GT Nexus), a global supply chain specialist. He also served as SAP’s industry executive for the apparel and footwear industry, helping to launch and grow the SAP Apparel & Footwear (AFS) business.
 
“Marshall offers a lifetime of fashion solution expertise across all aspects of the business,” added De Silva. “His experience with the enterprise technologies and processes relevant to fashion will be invaluable as we continue to roll out initiatives for the Fashion Innovation Portfolio.”

Posted March 24, 2015

Source: attune
 

Freudenberg Performance Materials Invests In New Production Line In China

WEINHEIM, Germany/SUZHOU, China — March 24, 2015 — Freudenberg & Vilene Nonwovens is investing in a new state-of-the-art production line for automotive headliners as its Suzhou facility in Eastern China. Start of production is scheduled for summer 2016. Freudenberg Performance Materials is the nonwovens specialist in the Freudenberg Group. The Business Group has a presence in China through Freudenberg & Vilene Nonwovens, a joint venture with Japan Vilene Company, Tokyo, Japan.
 
The automotive market in Asia is growing, and is particularly dynamic in China. According to figures published by the German Association of the Automotive Industry (VDA), some 1.9 million vehicles were sold in China in January 2015 alone, around 13 percent up on the same month last year. Demand for high-quality products is rising steadily, with automotive headliners enjoying a particularly strong trend. Asian OEMs prefer printed headliners that meet the high design standards of Japanese and Korean car manufacturers.

Freudenberg & Vilene Company introduced printed headliners in 2010 and is currently the only manufacturer with in-house printing capabilities. As a result, Freudenberg is able to offer customers innovative, individualized products with the most up-to-date designs while at the same time delivering on consistently high quality.
 
Freudenberg headliners are based on nonwovens and can be finished in various ways to provide additional functions. Apart from excellent abrasion resistance, outstanding acoustic properties and improved stain resistance, these products in combination with other vehicle components contribute to a marked reduction in vehicle weight. “Our commitment in China underscores the fact that we are a leading reliable partner for our customers worldwide and at the same time reaffirms our headliner expertise,” Bruce Olson, President and CEO of Freudenberg Performance Materials, commented.
 
The company partly uses recycled materials in the manufacture of its products. Special innovative surface treatment processes create sustainable products that meet all the demands of sophisticated vehicle design.
 
Freudenberg Performance Materials is an established reliable partner for the global automotive industry, particularly in the market for headliners. Freudenberg & Vilene Company maintains long-standing relations with Asian OEMs and holds a leading position on the market in Asia and China. Success is founded on a wide range of headliner innovations.
 
With this latest investment in a new production line – and thus in state-of-the-art technology and new products – the nonwovens specialist is reaffirming the significance of collaboration with the automotive industry.
 
Apart from products used in automotive interiors, the modern product range of Freudenberg & Vilene Company’s Chinese facility also included industrial nonwovens for the apparel and electronics industries as well as the energy and construction sectors.

Posted March 24, 2015

Source: Freudenberg Nonwovens
 

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