Rieter predicts a flat second half for 2012
30/10/2012
Specifically, it said that “downstream buying behaviour” has remained “volatile”. Financing for projects to update technology in textile manufacturing companies is becoming increasingly difficult, it explained, especially in China and India, leading to a generally more challenging market environment.
Rieter’s assessment is that the Chinese market is generally weaker because of locked-in raw material prices, but that companies there are looking for automation, upgrades in equipment and lower energy demand.
In Turkey, a government incentive programme to encourage upgrades has not yet shown great effect, it said, and in the third quarter, India has seen a pick-up in investment demand, with northern India showing more interest than in the southern states.
“China and India will see an increase in demand for machinery and components,” said the company’s executive chairman, Erwin Stoller, “offering higher productivity and quality as well as lower energy consumption. Both Rieter’s current product portfolio and its innovation strategy address this demand.”
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