Spinning technology specialist Rieter reports that it has secured significantly higher orders in the first six months of 2024 compared to the first half of 2023, including a second significant order from Shanghai Digital Intelligence World Industrial Technology (DIW).

Orders worth CHF 403.4 million have been received compared to those with a value of CHF 325 million in the first half of 2023, with machines primarily destined for China, India and Turkey.

Actual machine sales, however, fell by 62% to CHF 198.7 million and component sales were down 12% to CHF 126.5 million, as a consequence of the low order intake in 2023, although after sales increased by 4% year-on-year to CHF 95.8 million. On June 30, 2024, the company had an order backlog worth around CHF 640 million.

The company reports that its transfer of resources and responsibilities to India and China is on track, enabling it to respond more effectively to customer needs and to more effectively manage the cycles in the machinery business.

The first signs of a recovery in these key markets are now emerging and Rieter expects demand to pick up further in the coming months. For the full year 2024, the company anticipates sales in the range of CHF 900 million to CHF 1 billion and a positive EBIT margin of 2% to 4%.

Record order

DIW has placed a new order for more than 700 of the company’s Autoconer X6 winding machines, representing the largest order in the history of Rieter China. The order also strengthens the strategic partnership between the two companies to develop intelligent yarn manufacturing technology that utilises digitisation and automation to minimise conversion costs and maximise value for customers.

“This partnership is a win-win for both companies,” says DIW vice chairman Liu Yifang. “With our vertically integrated manufacturing operations, we are building some of the world’s most advanced spinning operations which will ideally position us for growth in this industry. Together we will further enhance the overall operational efficiency of DIW, creating a major player in cotton spinning.”

“With its high-performance winding machines, Rieter will help DIW meet its steadily growing demand and requirements for higher operational efficiency,” adds Rieter China MD Michael Hubensteiner. “The renewed cooperation will further amplify our shared strengths and position us to capture growth opportunities.”

www.rieter.com