22.11.2006 - Rieter sells Cabling, Twisting and Texturing Machine Activities
Rieter is selling its activities with cabling, twisting and texturing machines retroactively from 31.10.2006 to the French company, Co-Martin. The new owners have many years of experience in the man-made fiber business and are taking over all activities at the location in Valence, France. Non-disclosure of the selling price has been agreed.
The strategic review of the man-made fiber activities within the Textile Systems division has shown that a sustainably positive further development of the business with cabling, twisting and texturing machines within the Rieter Group is not viable. After careful examination of all possible options, the Board of Directors and the Group Management have decided to sell the whole subsidiary, Rieter Textile Machinery France SAS in Valence with all three business fields to Co-Martin, retroactively per 31.10.2006. The Rieter subsidiary in Valence employs 153 persons and achieved a turnover of approx. EUR 50 million in 2005. Both parties have agreed not to disclose the selling price. Due to necessary value adjustments, the transaction will result in a book loss. Despite opting out of these activities, Rieter will continue to participate in the market growth with the processing of man-made fibers through the business with staple fiber machines where Rieter is a leading provider of complete plants. Staple fiber machines are also increasingly processing man-made and blended fibers alongside cotton fibers.
Rieter is convinced that with Co-Martin the ideal owner for these man-made fiber activities has been found. Co-Martin can count on the previous management of the Valence location as well as on the support of the current management, the employees and the works council. The continuity of the customer service and the spare parts business is secured with this takeover. As of 22 November Rieter Textile Machinery France SAS in Valence will change its corporate name to R.I.T.M.
The strategic review of the chemical fiber activities located in Winterthur is still under study. A project conclusion and decision is expected in the next few weeks.
The Rieter Group, which operates on a global scale, develops and manufactures sophisticated systems solutions for the textile and automotive industries. In the 2005 financial year Rieter generated sales of 3'122 million CHF with some 14'600 employees worldwide. The Textile Systems Division accounted for 1'085 million CHF and the Automotive Systems Division for 2'031 million CHF.
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