Presentation by Peter Gnägi CEO Sept. 30 / Oct. 1, 2004 1
Textile Systems: Strategic Intent Highly profitable, highly flexible textile machinery business with the following priorities: Expansion of the component business Reinforcement of the nonwovens business Improvement in the man-made fiber business 2
Textile Systems: Demand of Fibers Fiber Consumption was and will be growing 80.0 67% 48.3 58% 1.6 2.4 3.4 2.9 3.2 9.4 85% 6.0 8.0 8.0 35% 10.0 27% 1900 1950 1998 2025 World population Billions Per-capita consumption kg/p Fiber consumption 1 000t Other Synthetic Cotton 3
Textile Systems: World Fiber Consumption Our Market will be in Asia World fibers production in 1 000 TONS 80'000 60'000 40'000 20'000 0 1990 2000 2010 2000 2010 China 26% 37% India 9% 10% Turkey 4% 4% Rest of the world 61% 49% Total 100% 100% Other Manmade Staple Polyester Staple Cotton Other Filaments Wool Polyester Filament Source: PCI Fibres & Raw Materials 4
Textile Systems: Global Presence One face to the customer USA Spartanburg Greensboro Mexico Mexico City Brazil Sao Paulo Switzerland Winterthur Effretikon Sirnach Pfäffikon Great Britian Macclesfield France Montbonnot Valence Wintzenheim Italy Grignasco Milan Germany Ingolstadt Grossostheim Deggingen Czech Rep. Usti nad Orlici Zamberk Boskovice Turkey Istanbul India New Dehli Mumbai Coimbatore China Shanghai Beijing Changzhou Hongkong Urumqi Jinan Taiwan Taipei Malaysia Kuala Lumpur 5
Textile Systems: Product Overview Five Fields of Business Spun Yarn Systems Filament Yarn Technologies Nonwovens and Plastics Machinery Manufacturing Services Technology Components & Conversions 6
Spun Yarn Systems Spinning System from Bale to Yarn Blowroom Card Spinning Preparation Ring Spinning Rotor Spinning 7
Textile Products: Filament Yarn Technologies System Supplier of Filament Yarn Machinery Carpet Yarns Industrial Yarns Textile Yarns Glass Fibers 8
Nonwovens & Plastics Machinery From Pellets to Plastics to Filaments to Nonwovens Pelletizing Systems Cleaning Systems Spinning Components Nonwovens Systems 9
Technology Support Knowledge along the entire Value Chain Research & Development Raw material Yarn production Fabric production Trade End use Know-How 10
Services System Supply - More than products Services from presales to after sales Technology Support Management Support 11
Technology Support Technology Centers for Best Customer Support Ingolstadt Ingolstadt Shanghai Usti Grossostheim Spartanburg Machine for trials System Services Montbonnot Winterthur 12
Management Support Rieter Network for Future Innovations GB / University of Leeds GB / UMIST DE / ITV DE / stfi CH / ETHZ PL / Lodz US / ITT Charlottesville CZ / VUTS US / GAtech, Clemson Cooperation in textile technological research and development 13
Innovation at Rieter Innovations have a background - Listen to the customers, know their needs - Create the right spirit and culture - Allocate ressources, including trust and patience Innovations by Rieter: Not all, but most are successful - Pavena Spinning... No success - First Ring Spin Doffer... No success - COM4 (new yarn type)... Success - BCF-Yarn (integration of texturing in spinning of carpet yarns)... Success - Rieter Rotor Systems (shortest process in cotton spinning)... Success - Under water pelletizing... Success - Nonwoven - Spunlace (=waterjet needeling)... On the Way... Not yet fully explored possibilities. See next slides (example Evolon) 14
Nonwovens Technology Nonwovens in Comparison to Weaving Technology Woven Nonwoven Maturity > 250 years > 40 years Complexity Multi stage process Multi technology process Speed Slow parallel material flow High single-pass material flow Investment 10.000 t/y Production Costs 9 30mEuro 7 15mEuro 0,4-0,7 EURO/m² 0,05-0,4 EURO/m² 15
Nonwovens Technology Co-operation with Customers: Freudenberg (Evolon) Textile characteristics Woven and knitted textiles Hydro entangled Evolon target Wetlaid Drylaid Spunbond Mechanical characteristics 16
Nonwovens Technology (Evolon Process) Spunlaid of Bi-component fibers Microfilaments Component A Microfilaments Component B ~ 3-20 m 17
Nonwovens Technology (Evolon Process) Water splitting and entanglement Human Hair (comparison) Split Microfilaments (A and B) 18
Rieter Nonwoven Pilot Line in Monbonnot, France All Technologies under One Roof 19
Nonwovens Potential Possible Growth Opportunity due to Innovation Mio tons 70 50 6 3 2004 2011 2011 low high Total fiber consumption Nonwovens fiber consumption 20
Rieter Nonwovens Pilot Line in Montbonnot Advantages for Innovation Most important technologies under one roof Versatility in regard to raw material use Easy combination of different technologies Semi industrial development of new products Production capacity for marketing trials (market pretest) Training facility for customers 21