From the Sector

Order intake was significantly higher than in the previous year at CHF 725.5 million (2023: CHF 541.8 million), representing an increase of 34%. This was the fourth consecutive quarter of year-on-year growth. An initial market recovery was visible compared with the previous year. As expected, the Rieter Group closed financial year 2024 with lower sales of CHF 859.1 million (2023: CHF 1 418.6 million) and thus remained 39% below the prior year. Despite significantly lower sales, an operating result (EBIT) of CHF 28.0 million (2023: CHF 104.8 million) and thus a solid EBIT margin of 3.3% (2023: 7.4%) was achieved.

Sales by division
The Machines & Systems Division posted sales of CHF 424.9 million, a decrease of 56% compared with the previous year (2023: CHF 965.0 million). In the Components Division, sales declined to CHF 247.6 million, down 7% from the same period of the previous year (2023: CHF 266.2 million). The After Sales Division reported sales of CHF 186.6 million, comparable to the previous year (2023: CHF 187.4 million).

Order backlog
At the end of 2024, the company had an order backlog of about CHF 530 million (December 31, 2023: CHF 650 million).

EBIT, net profit and free cash flow
Profit at the EBIT level in the year under review was CHF 28.0 million (2023: CHF 104.8 million), which represents an EBIT margin of 3.3% (2023: 7.4%). Despite significantly lower sales, a solid EBIT margin was achieved. This is mainly due to the consistent implementation of the measures set out in the “Next Level” performance program. Rieter closed the 2024 financial year with a net profit of CHF 10.4 million (2023: CHF 74.0 million).

Free cash flow amounted to CHF 14.1 million (2023: CHF 118.7 million). Net debt increased due to new lease liabilities in connection with the Campus in Winterthur to CHF 230.3 million (2023: CHF 191.2 million).

The equity ratio as of December 31, 2024, rose to 33.7%, mainly due to positive currency effects and lower net working capital (previous year’s reporting date 28.8%).

Dividend
The Board of Directors proposes to shareholders the distribution of a dividend of CHF 2.00 per share for 2024 based on the positive free cash flow of CHF 14.1 million and the improved equity ratio of 33.7%. This corresponds to a payout ratio of 85.8%.

Sustainability
Rieter has a clearly defined sustainability strategy that is closely linked to the Group strategy. Through the Science Based Targets initiative, Rieter made a commitment in 2024 to define company-wide emission reduction targets for the year 2040, which are consistent with scientifically-based net-zero goals.In the 2024 Annual Report, the report on non-financial matters shows the progress Rieter has made in the areas of environmental, social and corporate governance.

Outlook 2025
Rieter expects a challenging first half in 2025 with regard to sales volume and a stronger second half-year depending on the further market recovery. As a consequence, Rieter anticipates a sales volume at the previous year’s level for the full year 2025. Despite this exceptionally low sales level, Rieter anticipates a positive EBIT margin between 0% to 4% for the year 2025.

At this global gathering, major industry challenges such as digitalization, automation, new regulations, and the circular economy were addressed.

In 2025, Jeanologia celebrates its 30th anniversary, marking three decades of innovation in transforming the textile industry. The Spanish company commemorates this milestone with a pioneering event, the NextGen Summit, bringing together for the first time the world’s leading denim manufacturers under one roof. With a significant representation of global production, the summit has served as a platform to inspire, motivate, and empower the next generation of leaders from family-owned businesses in the denim industry, equipping them with the necessary tools to tackle future challenges with a sustainable, technological, and collaborative vision.

Held at Jeanologia’s headquarters in Valencia and other key textile industry locations in Spain, the event has been a pivotal meeting point where future leaders exchanged ideas and knowledge with brands and industry experts. For the first time, the sector’s leading companies gathered to discuss the industry's future, addressing key challenges such as sustainability, digitalization, and automation.

The NextGen Summit program included diverse formats designed to maximize learning and interaction, featuring inspirational talks where industry leaders shared their experience and vision, with a special focus on generational transition; interactive workshops exploring innovative solutions for industry challenges; and open debates fostering dialogue among key players in the sector.

One of the standout moments of the event was the keynote by Bart Sights, Head of Innovation at Levi’s, who inspired attendees with his disruptive vision and industry trajectory. From his early days working alongside his father as a supplier to his current role leading innovation at one of the most influential denim brands, Sights emphasized the importance of bringing bold ideas to the table. His message encouraged participants to embrace change and leverage new technologies to accelerate transformation.

Additionally, a visit to Mango’s headquarters was one of the most emotional and inspiring moments of the program, as it paid tribute to the memory of its founder, Isak Andic. During the visit, Andrés Fernández, Head of Sustainability & Sourcing, shared Mango’s vision, objectives, and action plans for sustainability, sparking a highly enriching discussion for both parties.

An inspiring session was also held at another major Spanish retailer, where participants not only gained insight into its strategic approach and vision for the future of the industry but also engaged in an open debate on the challenges and opportunities facing the sector.

A collaborative and digital future
Beyond learning, the NextGen Summit has been a catalyst for collaboration, creating a space where the industry can learn, share, and evolve together.
Through this event, young leaders have established lasting relationships and made concrete commitments to advance toward a more responsible and efficient model. The community formed at this summit will continue to stay connected and exchange ideas beyond the event itself, reinforcing Jeanologia’s mission to build a more collaborative and transparent textile ecosystem.

Avgol, an Indorama Ventures company, celebrated the opening of its new high-speed, high-capacity flexible multiple beam nonwovens production line at its facility in Mocksville, NC. It represents the successful realization of a $100 million investment.

In addition to the new production line and as part of the investment, Avgol has installed a state-of-the-art 3-layer lamination line that further expands the company’s nonwoven composite capabilities. Engineered with precision temperature controls, high-speed bonding technology, and an integrated quality inspection system, this advanced machine efficiently fuses three layers to produce lightweight, durable composites with exceptional strength and consistency. Designed to meet the highest quality and performance standards, it reinforces Avgol's commitment to delivering top-tier products and setting new industry benchmarks in nonwoven composite manufacturing.

The inauguration of the new nonwovens production line and beginning to run commercial products is a pivotal step in Avgol’s strategic roadmap, setting the stage for advanced manufacturing capabilities and enhanced production efficiency.

Key highlights of the new production line include:

• Technology: The new line integrates the latest Reicofil manufacturing technology with bico capabilities, ensuring precision, speed, and superior quality control.
• Capacity: With enhanced high-loft production capabilities, Avgol is now better equipped to meet current and future market demands for hygiene products.
• Sustainability: Emphasizing environmental responsibility, the new facility integrates energy-efficient systems, reduced waste protocols, and innovative processes for manufacturing lightweight products.

Tonello S.r.l., a global leader of garment finishing technologies, announced the acquisition of Flainox S.r.l., a historic company based in Quaregna Cerreto (BI) with over fifty years of experience in manufacturing dyeing machinery.

This acquisition marks a significant evolution for the group, strengthening its ability to offer increasingly advanced solutions and respond effectively to the demands of a constantly evolving market. The merging of expertise allows for the expansion of the technological portfolio, offering an even more diverse and specialized range of products.

The union of Tonello and Flainox opens new opportunities for developing cutting-edge technological solutions, with a particular focus on sustainability and production excellence. Both companies, with strong roots in the Made in Italy tradition, share a common vision based on innovation and the continuous evolution of the industry. Flainox will continue to operate under its own brand, collaborating with the Tonello team.

The acquisition also enhances the commercial network, optimizing international coverage and providing customers with even more efficient and targeted services. Thanks to this synergy, the group reinforces its commitment to a more innovative and sustainable textile production.

The acquisition reaffirms Tonello’s determination to promote excellence in textile finishing technologies, with an increasing focus on investment in research and development for ever more efficient and sustainable processes.

ARISE IIP, the pan-African developer and operator of world-class industrial parks, has partnered with African Export-Import Bank (Afreximbank) and Rieter, the supplier of systems for manufacturing yarn from staple fibers in spinning mills. The unprecedented partnership will spearhead the “Africa Textile Renaissance Plan” – a transformative initiative aimed at revitalizing the continent’s textile sector. This ambitious project will leverage ARISE’s extensive network of industrial parks to support a new era of textile manufacturing in Africa.

In order to facilitate the implementation of the Africa Textile Renaissance Plan, Afreximbank, Arise IIP and Rieter AG signed a framework agreement on October 14, 2024. The framework agreement outlines the collaboration to establish 500 000 metric tons of African cotton transformation capacity over the next three to five years, supported by USD 5 billion in financing.

The Africa Textile Renaissance Plan aims to achieve the following key objectives:

• establish 500 000 metric tons of African cotton transformation capacity over the next three to five years, with potential expansion of an additional 500 000 metric tons,
• localize machine repair expertise in Africa,
• create up to 500 000 jobs,
• reduce Africa’s annual textile imports,
• boost exports to the US under the African Growth and Opportunity Act (AGOA), focusing on full value addition within the continent and to export to the rest of the world and
• develop a strong financing structure to support capacity building.

Countries benefiting from the program will be selected based on criteria such as power and gas availability, and textile parks with standard infrastructure or equity contribution. Training centers will be established in selected countries to develop and improve skill levels.

The partnership aims to secure financing of textile projects, streamlining the process through:

• standardized loan documentation and security packages,
• expedited two-month application process and
• standardized business plan templates.

To foster long-term growth, Rieter has committed to gradually establishing a manufacturing presence in Africa subject to commercial viability, including the:

• setup of a repair and maintenance facility in ARISE’s industrial park in Benin,
• establishment of spare parts warehousing and
• phased introduction of machine assembly operations.

Gagan Gupta, CEO and Founder of ARISE IIP expressed his enthusiasm for the project: “The Africa Textile Renaissance Plan represents a significant milestone in the continent’s industrial development. I’m convinced that this initiative will not only boost local manufacturing and create thousands of jobs but also position Africa as a global leader in sustainable textile production.”

Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, stated that the Africa Textile Renaissance Plan is a “game-changer” for African trade. He remarked: “By transforming Africa’s cotton into high-value textile products, we are not only driving industrialization but also reducing dependence on imports while building a competitive export base. This partnership complements our ongoing efforts, such as the transformative change we are spearheading in Africa’s Cotton-4 plus (C4+) countries, alongside other partners. It underscores Afreximbank’s unwavering commitment to industrialization and export development.”

Thomas Oetterli, CEO Rieter Group, said: “We are thrilled to support this important initiative with our commitment, expertise and consulting knowledge. We are convinced that the Africa Textile Renaissance Plan marks an important starting point for the future development of the textile industry in Africa.”

About 50 Italian companies will exhibit at ITMA ASIA + CITME 2024, taking place from October 14 to 18 in Shanghai. With an area of around 1,400 square meters, Italy ranks among the top exhibiting Countries, as in previous editions. 29 Italian exhibitors will show their innovations within the National Sector Groups, organized by ACIMIT (Association of Italian Textile Machinery Manufacturers) and Italian Trade Agency.

ITMA ASIA + CITME show has always been the main showcase for textile machinery manufacturers in Asia, that absorbs over 50% of global exports. Moreover, China is the world’s largest market in the sector (the value of imported textile machinery in 2023 was around 2.6 billion euro).

For Italian manufacturers as well, the Chinese market is the top foreign destination. In 2023, Italian sales to China amounted to 222 million euro. In the first six months of this year, exports to China increased by 38%, while the performance of total Italian exports declined slightly in the same period.

“We hope that the recovery of the Chinese market, observed in this first half of the year, may be an early indication of a more general upturn in global demand for machinery,” says ACIMIT President Marco Salvadè. Over the past few years, demand from Chinese companies has turned to technologies that combine savings in production costs and environmental friendliness, as also demanded by brands and end consumers. “Today, Italian manufacturers can offer highly customized solutions that are particularly suited to making textile production more sustainable,” confirms Salvadè. “The Chinese textile machinery market is rapidly evolving, and the level of innovation in the technology requested has risen due to the growing international competition that even Chinese companies face. In Shanghai, Italian manufacturers will display their latest innovations, essential for making textile production more efficient and sustainable.”

About 50 Italian companies will exhibit at ITMA ASIA + CITME 2024, taking place from October 14 to 18 in Shanghai. With an area of around 1,400 square meters, Italy ranks among the top exhibiting countries, as in previous editions. 29 Italian exhibitors will show their innovations within the National Sector Groups, organized by ACIMIT (Association of Italian Textile Machinery Manufacturers) and Italian Trade Agency.

ITMA ASIA + CITME show has always been the main showcase for textile machinery manufacturers in Asia, that absorbs over 50% of global exports. Moreover China is the world’s largest market in the sector (the value of imported textile machinery in 2023 was around 2.6 billion euro).

For Italian manufacturers as well, the Chinese market is the top foreign destination. In 2023, Italian sales to China amounted to 222 million euro. In the first six months of this year, exports to China increased by 38%, while the performance of total Italian exports declined slightly in the same period.

“We hope that the recovery of the Chinese market, observed in this first half of the year, may be an early indication of a more general upturn in global demand for machinery,” says ACIMIT President Marco Salvadè. Over the past few years, demand from Chinese companies has turned to technologies that combine savings in production costs and environmental friendliness, as also demanded by brands and end consumers. “Today, Italian manufacturers can offer highly customized solutions that are particularly suited to making textile production more sustainable,” confirms Salvadè. “The Chinese textile machinery market is rapidly evolving, and the level of innovation in the technology requested has risen due to the growing international competition that even Chinese companies face. In Shanghai, Italian manufacturers will display their latest innovations, essential for making textile production more efficient and sustainable.”

A collaboration that unites Monforts’ dyeing and finishing equipment, BW Converting’s Baldwin TexCoat G4™ digital spray technology and Archroma’s chemistries towards sustainable solutions is charting the course for the future of sustainable textile finishing.

Together, the three companies will support dyeing and finishing manufacturers, a critical part of the textile supply chain, in their development projects, boosting the quality and performance of their finished products, while at the same time maximizing the productivity and resource utilization of the finishing application process.  

Kicking off the partnership in the second half of this year, Monforts will install BW Converting’s full-width Baldwin TexCoat digital spray unit on a stenter frame at its Advanced Technology Center (ATC) at its headquarters in Mönchengladbach, Germany.

“Our ATC already houses two full Montex stenter finishing lines engineered to accommodate an extremely diverse range of processes, in addition to a Thermex range for the continuous dyeing of denim and other woven fabrics, a full color kitchen and a number of lab-scale systems for smaller batch trials,” explained Monforts Junior Technologist Saskia Kuhlen. “It enables our customers to test their own textiles and technical fabrics under fully confidential, real production conditions and using the results from these trials we are also able to make recommendations for improving many fabric finishes. The new TexCoat installation will make an important contribution to what we can achieve.”
 
TexCoat G4 revolutionizes the traditional water- and energy-intensive pad-dry-cure finishing process by precisely applying chemistry including softeners, antimicrobials, durable water repellents, flame retardants, resins and most other water-based chemicals across the textile surface only where it is required, on one or both sides of the fabric. The system can therefore reduce water, chemistry and energy consumption by up to 50% compared to traditional pad application processes.

The TexCoat G4 installation brings together the surface functions, fabric transport and thermal processing technology of Monforts stenter frames with Archroma’s specialty chemicals, applied with TexCoat’s contactless precision, to achieve optimum absorption and maximum efficacy, exceeding the performance of traditional pad applications.

“Archroma’s commitment to advancing sustainability solutions for technical textiles has led to a pivotal partnership with Baldwin, where the benefits of contactless precision spray combined with our innovative solutions have helped textile manufacturers achieve greater energy and water savings,” said Michael Schuhmann, Global Marketing Segment Manager for Technical Textiles, Archroma Textile Effects. “We are thrilled to take the partnership to the next level with the integration of a renowned equipment expert. Together, we will bring the best of our expertise in sustainable technologies to our customers around the world.”

“Baldwin has enjoyed a great relationship with Monforts and Archroma over the last few years,” added Rick Stanford, Baldwin’s Vice-President of Business Development for Textiles “Individually, we are working hard to assist our customers to achieve their sustainability and environmental targets but this is the first time the three companies have committed to working together with a focus on bringing transformative change to the dyeing and finishing space. It will result in significantly lower energy, chemical and water consumption with increased productivity and higher quality.  We strongly believe that this partnership will be greater than the sum of its parts.”

Beyond textile finishing, Monforts, Baldwin and Archroma will work together to develop a versatile offering that will include coloration concepts and in the not-too-distant future the partners additionally plan to expand their collaboration to continuous spray dye applications developed by Baldwin.

This year's ITMA Asia + CITME 2024 trade fair appearance of the Oerlikon Polymer Processing Solutions Division between 14 and 18 October 2024 will once again focus on current challenges for the global textile machinery industry: the replacement of old systems with energy-efficient and sustainable technology solutions, the use of digital software and hardware solutions to increase productivity and ensure material quality, and the traceability of all products to enable the recycling of the raw materials used in a future-oriented circular economy.

Oerlikon Polymer Processing Solutions offers complete solutions ranging from extrusion and polycondensation systems to texturized yarn, accompanied by automation and digital solutions. The supply of all process steps from a single source ensures a coordinated technology that guarantees the high quality of the fibers and yarns produced. The entire product portfolio of the supplier of machines and systems primarily to produce polyester, polypropylene and nylon will therefore take centre stage at this year's trade fair.

“The Chinese market continues to have enormous potential for us, even if it has not been able to match the previous times in terms of large new installations of manmade fiber plants and the associated expansion of production capacity for good two years. However, there is still a great need for renewal, especially in terms of sustainability. Shutting down old plants and replacing them with new, modern and energy-efficient technologies is the path to a better and lower-emission future for us all,” explains André Wissenberg, Head of Marketing, Corporate Communications and Public Affairs. “We have been contributing to sustainability with our technology solutions for decades. Be it by increasing energy efficiency with each new generation of machines or by processing new materials,” Wissenberg continues. Oerlikon is proud of the fact that the company has been offering solutions for the textile industry under the e-save sustainability label for 20 years and has saved over 15 million tons of CO2 thanks to the machines and systems developed and installed on the market during this time.

About 25 VDMA members will participate at CAITME, taking place from 11 to 14 September in Tashkent, Uzbekistan. Among the VDMA companies present at the trade fair with their own booth or through agents, 13 companies will be exhibiting in the area of the official German Pavilion, organised by the German Federal Ministry for Economic Affairs and Climate Action and initiated by VDMA: Brückner Textile Technologies, Erbatech, Georg Sahm, Groz-Beckert, Heusch, KARL MAYER STOLL Textilmaschinenfabrik, KURIS Spezialmaschinen, Lindauer DORNIER, Oerlikon Textile, Stäubli Bayreuth, STC Spinnzwirn, THIES, Xetma Vollenweider.

With exports of textile machinery and accessories worth 85 million euros in 2023, Germany was once again the second biggest supplier to the Uzbek textile sector, surpassed only by China. Uzbekistan is one of the largest producers and exporters of cotton. In the cotton sector, Uzbekistan already has a fully integrated production chain. Almost the entire cotton fibre is spun in the country. The Uzbek government has pushed ahead with extensive economic reforms in recent years. The textile industry is one of the top investment sectors in the manufacturing industry. Besides cotton spinning, the textile sector is enlarging its capacities in the downstream production steps of the textile chain, such as fabric making, finishing and dyeing.