From the Sector

Rieter has signed a definitive agreement to acquire Barmag from OC Oerlikon for an upfront equity purchase price of CHF 713 million. The acquisition will create a globally leading player in natural and manmade fibers, headquartered in Winterthur, Switzerland, and is highly complementary to Rieter’s short-staple fiber business.

Barmag is a provider of filament spinning systems used for manufacturing manmade fibers, texturing machines, BCF1) systems, staple fiber spinning and nonwovens solutions and – as an engineering services provider – offers solutions along the textile value chain. In the financial year 2024, the company generated sales of CHF 734 million with around 2 600 employees.

Barmag comprises the established product brands Oerlikon Barmag, Oerlikon Neumag and Oerlikon Nonwoven. The main markets for the Barmag product portfolio are China, India, Türkiye and the United States of America. The innovative and technologically advanced products are developed in Remscheid and Neumünster (Germany) as well as Suzhou and Wuxi (China).

As fiber consumption is projected to rise, most of the growth is expected to come from manmade fibers. The increase of natural fibers such as cotton and linen is limited due to natural boundaries. Manmade fibers will help to meet expanding demand for clothing, technical and home textiles. The strategic acquisition of Barmag will transform Rieter into a leading supplier for converting natural and manmade fibers into yarn.

The transaction is fully in-line with Rieter’s strategy and follows previous acquisitions, where Rieter complemented its portfolio in short-staple fiber machinery and expanded its footprint in components and machinery for manmade fiber production. The combined platform allows to leverage the recovery of global filament and short staple fiber spinning markets and to reduce cyclicality due to diversification of end-markets. The acquisition will further enhance Rieter’s position in the important Asia-Pacific region and provide access to Barmag’s filament expertise, which will help to further scale Rieter’s own capabilities and improve digitization solutions and product sustainability.

Rieter’s largest shareholder, Peter Spuhler (c. 33% shareholding) is supportive of the transaction and committed to participating in the rights-issue pro-rata by exercising its subscription rights as well as investing additional capital through the non-pre-emptive capital raise. After the capital increase, PCS Holding AG is expected to retain a shareholding of c. 33%.

Additionally, Rieter’s second-largest shareholder, Martin Haefner (c. 10%), also supports the transaction and has committed to participating pro-rata in the rights-issue by exercising its subscription rights and investing additional capital through the non-pre-emptive capital raise.

On March 31, 2025, DEMGY Group took a decisive step in its international development strategy by acquiring the American company TOOL GAUGE, which specializes in the manufacture of plastic components for the interior of aircraft cabins. This acquisition will enable DEMGY to consolidate their position as one of the world leaders in high value-added plastics processing for civil and military aeronautics.

With this operation, DEMGY is extending its footprint on the North American market, a strategic territory for the aerospace sector. The American company, now renamed DEMGY Pacific, is thus joining a group already present in France, Germany, Romania and the United States, bringing the total number of the group's industrial sites to 10.

Recognized expertise for the benefit of American aerospace
Based in Tacoma, Washington State, TOOL GAUGE has nearly 60 years of experience in the processing of high-performance polymers and the machining of precision parts. Recognized for its operational excellence, it has been awarded the Silver Performance Excellence Award by Boeing for 9 consecutive years.

The company has two complementary production units: one dedicated to plastic injection, particularly for interior fittings in aircraft cabins, and the other specializing in the machining of metal and plastic parts. This technical expertise considerably strengthens DEMGY's offering to major clients in the aerospace sector.

Airbus, Boeing: DEMGY stands out as a key partner
This strategic acquisition enables DEMGY to become a tier 1 supplier for Boeing and Airbus, as well as a tier 2 supplier for all their equipment manufacturers in Europe and North America. This positioning considerably strengthens the group's visibility and attractiveness on the global aerospace market.

"By strengthening its leadership in high value-added plastics processing for the aerospace and defense industries, the DEMGY Group has become one of the world's leading, if not the leading, supplier of plastic parts for cabin interiors directly to Airbus and Boeing, as well as to all American and European aircraft equipment manufacturers," says Pierre-Jean LEDUC, Chairman and CEO of DEMGY Group. "This enables us to deploy our high and extreme performance plastics solutions on a much larger scale".

Integration driven by DEMGY Group's cross-functional synergies
DEMGY Pacific will be managed by Mike Walter, also President of DEMGY Chicago, and Eric Wilmoth, Vice-President of Operations. Both will be tasked with implementing industrial and commercial synergies with all the entities of the group, particularly in terms of injection, assembly and decoration.

This integration will promote the development of global solutions to meet the growing demands of the aerospace industry in terms of lightness, performance and durability.

Target of 200 million euros: managed growth
With its 10 industrial sites and 950 employees, DEMGY forecasts sales of over 130 million euros by 2025. Our group's ambition is to reach 200 million euros by 2030, capitalizing on its unique know-how, capacity for innovation and proximity to major customers.

Materials lightening at the heart of decarbonization
For several years, DEMGY has been committed to reducing the carbon footprint of industries, by designing polymer materials that are lighter than metal, durable and recyclable.Thanks to our circular Multiplasturgy® offer, we integrate eco-design from the product development phase.

DyStar, a leading specialty chemical company with a heritage of more than a century in product development and innovation, announced the cessation of manufacturing operations at DyStar Hilton Davis with partial integration of production within DyStar LP in Reidsville, North Carolina.

The latest integration will impact the production facility of DyStar Hilton Davis, which primarily manufactures Food, Drug, and Cosmetic Dyes (FD&C), Drug and Cosmetic Dyes (D&C), Lakes, Technical Dyes, and Pigment Dispersions. As part of our ongoing efforts to consolidate and optimize our manufacturing footprint (MFO) in Americas, the facility will cease production operations on 30 June 2025.

Following the final instalment of the Group’s consolidation plan, DyStar’s Americas will focus our main production activities at the sites in Reidsville, North Carolina, and Cheyenne, Wyoming.

Mr. Xu Yalin, Managing Director and President, DyStar Group said, “We believe that the success of the strategic plan will position DyStar to decisively respond to the fundamental changes taking place in the industry and enables us to improve profitability while maintaining strategic product development capability, and to accelerate growth over the long-term.”

Mr. Clement Yang, Vice President, Global Manufacturing, DyStar Group said, “The overall plan builds upon our global capabilities and resources, and it reinforces DyStar’s strong commitment to strategic investments, product and service excellence, as well as productivity improvements that will drive our Company, customers and industry forward.”
DyStar remains committed to working closely with all stakeholders, including affected employees, customers, suppliers, and partners to minimize the impact on business operations and to ensure a smooth global transition. We will treat all affected parties with due respect and dignity, adhering to company policies, collective bargaining agreements and regulatory requirements.

The company will support affected employees with necessary resources during this transition, including resources and opportunities for employees to apply for open positions at other DyStar locations in Americas.

A significant delegation of Italian textile machinery manufacturers will participate in Techtextil North America, the trade fair set to take place in Atlanta, Georgia, from May 6 to May 8. ACIMIT, the Association of Italian Textile Machinery Manufacturers, together with Italian Trade Agency, has organized a dedicated exhibition area, where 21 Italian manufacturers will showcase their latest innovations.

The ACIMIT member companies exhibiting in the Italian pavilion include: 4M Plants, Bianco, Bonino, Color Service, Fadis, Flainox, Ima, Marzoli, Monti Antonio, Monti-Mac, Omr, Ramatex, Ramina, Reggiani Macchine, Siltex, Simet, Stalam, Tecnorama, Unitech, Zanfrini, Zappa.

The U.S. textile industry remains one of the most significant sectors within American manufacturing, with annual sales exceeding 64 billion USD and a workforce of over 500,000 employees. U.S. textile companies are among the leading investors in technology, as evidenced by the value of U.S. textile machinery imports, which amounted to approximately 1 billion USD in 2024.

For Italian manufacturers, the U.S. market ranks as the fourth largest export destination after China, Turkey, and India. In 2024, Italian exports to the United States reached 112 million euro, remaining stable compared to the previous year. “The 2025 edition of Techtextil North America,” commented Marco Salvadè, President of ACIMIT, “comes at a time of economic uncertainty for the global textile machinery industry. However, the increased number of Italian companies attending the fair, compared to recent editions, reflects a cautious optimism regarding the development of projects within the U.S. textile sector.”

Ontex Group NV, a leading international developer and producer of personal care products, announces that it has completed the divestment of its Brazilian business activities to Softys S.A., a personal hygiene company with operations across Latin America and a wholly-owned subsidiary of Empresas CMPC S.A., headquartered in Chile.

The transaction includes Ontex’s business in Brazil and its manufacturing facility in Senador Canedo in the State of Goiás. The business develops, manufactures, commercializes and distributes diapers and pants for the baby care market under the PomPom, Cremer, Sapeka and Turma da Mônica brands, as well as for the adult care market under the Bigfral brand. It employs approximately 1,400 employees.

Gustavo Calvo Paz, CEO of Ontex, said: “Reaching this milestone allows us to focus further on our retailer brands and healthcare in Europe and North America, where we have significant growth drivers for the future. Moreover, the proceeds from the sale will further reduce our indebtedness, putting us in an even stronger position to further execute our transformation. I am convinced that Softys is well placed to take the business forward, enabled by the talent and expertise of our teams.“

Aggregate net cash proceeds received at closing, net of cash/debt disposed, are €81 million, after the impact of tax-related and transaction costs, hedging expenses, as well as provisional balance sheet adjustments. On top of this amount, €18 million* will be put in escrow at closing.  The divestment proceeds will be used to reduce Ontex’s outstanding gross financial debt further.

Ina Brandes, Minister for Culture and Science of the state of North Rhine-Westphalia, visited Institute Director Professor Dr Thomas Gries in person on 7 March to gain an impression of research at Institut für Textiltechnik of RWTH Aachen University. Their tour took them through the central steps of the textile process chain - from primary spinning and fibre spinning processes to modern composites such as fibre composites and textile concrete. The ITA focuses on sustainability, circular economy and bioeconomy and offers comprehensive training programmes, from industrial training to doctorates. As a technology driver in textile technology, the ITA emphases on digitalisation and automation and the use of artificial intelligence (AI), especially neural networks, which have been under development at ITA for more than 30 years.

ITA researches and develops technical textiles for the needs of today and tomorrow. This includes, for example, the BIOTURF project. It is part of the BIOTEXFUTURE innovation area for bio-based textile research funded by the Federal Ministry of Education and Research. The aim here is to convert the textile value chain from petroleum-based to bio-based. Another major project is WIRKsam Competence Centre. By designing AI-supported work, WIRKsam aims to improve the competitiveness of companies and to make work healthier and more attractive. Other project examples include sustainable pipeline systems for the future, textile recycling and reducing the CO² footprint. ITA is researching, for example, how recyclable insulation textiles can contribute to thermal insulation or how textiles can be used to automatically and sustainably remove oil spills from water. To this end, ITA is active worldwide and internationally, including in cooperation with South Korea on industrial digitalisation and renewable energies, to name just a few examples.

With more than 100 doctoral students and a total of around 400 employees, ITA is one of the five largest institutes at RWTH Aachen University.

Science Minister Ina Brandes: “Prof. Thomas Gries and his team are demonstrating outstanding work at Institut für Textiltechnik (ITA) of RWTH Aachen University. For over 90 years, ITA has been researching, developing, and designing advanced textiles – for example sustainable fibres that reduce the use of petroleum-based materials. The different possible uses of the materials are impressive: from artificial soccer turf to sportswear, medical materials such as heart valves, and textile-reinforced concrete for building construction. New technologies and strong networks between science and industry empower ITA to significant textile progress.“

Suominen has published Sustainability Agenda for the period 2025–2030. The agenda crystallizes Suominen’s sustainability themes and targets.

Suominen’s Sustainability Agenda is built around four key themes that reflect the most important topics for the company and its stakeholders: People and safety, Sustainable nonwovens, Low impact manufacturing and Corporate citizenship. These themes are based on Suominen’s double materiality assessment, completed in 2024, which reaffirmed their relevance from the previous Sustainability Agenda period (2020–2025).

Themes and KPI’s
The four themes create basis for actions and targets. Through the sustainability themes Suominen evaluated its performance and reports on its achievements on an annual basis.

People and safety

• Zero lost time accidents (LTA)
• Diversity, equity & inclusion (DEI) index 80%

Sustainable nonwovens

• More than two thirds of consumed raw materials are from plant-based resources
• More than half of our new R&D initiatives focus on advancing the development of sustainable products

Low impact manufacturing

• Reducing scope 1, 2 and 3 greenhouse gas emissions with limiting global warming to 1.5°C in line with the Paris Agreement
• Zero manufacturing waste to landfill

Corporate citizenship

• All qualified raw material suppliers assessed against Suominen’s sustainability criteria
• All employees have completed Suominen’s sustainability training program

"These KPI’s reflect our commitment to sustainability and help us measure our impact as well as drive meaningful change. By setting clear targets, we ensure continuous progress toward a safer workplace, a more sustainable product portfolio and responsible operations," says Noora Lindberg, Director, Sustainability & Marketing.

“Sustainability is embedded in everything we do – it is a key driver of success for both us and our customers. Suominen is committed to being the frontrunner in sustainable nonwovens and our innovation work is strongly focused on developing more sustainable nonwoven solutions that meet our customers' needs,” says Tommi Björnman, President & CEO of Suominen.

The acquisition of a majority stake of 70 percent in the Chinese automotive supplier Jiangsu Huanyu Group, which was announced in November 2024, was completed with effect from February 28, 2025, following approval by the authorities. As a result, Business Group Asia secures access to all major Chinese manufacturers and significantly increases its annual revenue.

The agreement to acquire 70 percent of the shares of Jiangsu Huanyu Group, which was signed on November 19, 2024, was executed today. All necessary approvals by the authorities for the take-over have been granted. As a result, Autoneum is acquiring a majority stake in one of the leading suppliers of lightweight components for light and commercial vehicles in China as of February 28, 2025. Autoneum also has the option to purchase the remaining 30 percent of the share capital in 2028. As previously announced, the Jiangsu Huanyu Group will continue to operate under its Chinese name.

Established in 2001, Jiangsu Huanyu Group operates 13 production facilities* with approximately 1 200 employees in close proximity to local vehicle manufacturers in the north, west and southeast of China, including the booming automotive hubs of Anhui and Shaanxi. The plant in Wuhan is operated by several companies of the Jiangsu Huanyu Group, but officially counts as only one site. Therefore, a total of 13 production facilities were acquired with the Jiangsu Huanyu Group, and not 14 as announced on November 19, 2024.

The Group’s product port-folio includes components for the vehicle interior such as carpets, inner and outer dashes, headlin-ers, trunk and interior trim, wheelhouse outer liners as well as insulation for the engine bay and the underbody, offering strong potential for synergies with Autoneum’s current product offerings. In the 2023 financial year, Jiangsu Huanyu Group generated revenue of around CHF 130 million with a significant increase in 2024.

The takeover marks another milestone on the way to generating 20 percent of Group revenue in Asia in the medium term. Autoneum Chief Executive Officer Eelco Spoelder explains: “Jiangsu Huanyu Group achieves over 90 percent of its revenue with Chinese customers, making it an ex-cellent strategic fit for Autoneum. We are gaining access to an established customer base in China, including several major Chinese vehicle manufacturers such as BYD, BAIC and GAC, and are thus significantly strengthening our position in the world’s largest automotive market. Jiangsu Huanyu Group’s presence and diversified product portfolio will also support the expansion of our commer-cial vehicle business in China and enable us to leverage further synergies in the areas of technology, manufacturing processes and purchasing.”

The specialty chemical company DyStar announced the sale of the property housing its manufacturing facility in Charlotte, North Carolina and subsequent consolidation of Charlotte production facility. As a result of the sale, the production facility, which produces performance chemicals, textiles and leather chemicals, will be integrated within DyStar LP in Reidsville, North Carolina.  
 
DyStar has entered into an agreement with Constellation Real Estate Partners, for the land sale that currently houses DyStar Carolina Chemical Corporation. The deal is expected to be completed by Quarter 4 of 2025 and is aligned with DyStar's long-term vision for growth and development for the Americas region.
 
Following the strategic decision of the sale and subsequent consolidation of manufacturing activities, some positions will be impacted. DyStar remains committed to provide extensive support to affected employees, including offering opportunities within other sites in the United States. This move is an important part of our long-term strategy for growth, and we deeply appreciate the hard work and dedication of all our employees during this transition.
 
The move of DyStar Carolina Chemical facility to DyStar LP in Reidsville is expected to take place over the next twelve months, with an expected completion by end of 2025 or early 2026. The consolidated facility at DyStar LP, coupled with added capability from DyStar Carolina Chemical, will eventually drive DyStar Americas towards our goal of improving operational efficiency, reducing costs, and enhancing overall productivity. Customers can expect better proximity with an advanced infrastructure that is scalable for the future growth once the move is completed.

A Study Dissemination on ‘Assessment of Technological Transition in the Apparel Sector of Bangladesh and Its Impact on Workers’ has arranged by Bangladesh Labour Foundation (BLF), Solidaridad Network Asia & Brac University.

Automation had led to a 30.58% decline in the total workforce across production processes in the ready-made garment (RMG) sector with the majority of the displaced workers being helpers, according to the study.

While automation has boosted economic growth and productivity in the sector, it has simultaneously created significant challenges for RMG workers—especially women, older employees, less literate individuals, and those lacking skills or confidence.

The sweater factory subsector experienced the highest workforce reduction, with a 37.03% decline per production line, followed by woven factories, which saw a 27.23% drop. In terms of specific production processes, the cutting stage showed the most pronounced reduction, with a 48.34% decrease in workers, whereas the sewing process experienced a comparatively smaller decline of 26.57%.

The findings emphasize the urgent need to address “Just Transition” issues, which aim to balance economic advancement with equitable outcomes for displaced workers, as highlighted in the study’s executive summary.