News Flash

Rieter to focus on development of machines in Germany

02 Oct '17

1 min read

Courtesy: Rieter

Rieter, a leading supplier of systems for short-staple fibre spinning, will focus on the development of machines and provision of technical support for the after sales business in Ingolstadt, Germany. Rieter has agreed with the Works Council at the Ingolstadt location on a package of measures for employees affected by the planned reduction in the workforce.

The offers submitted by Rieter to some 220 employees include termination contracts or a switch to a transfer company. "To prepare the employees for the requirements of the job market, consultancy and mediation services as well as qualification measures are essential components of the transfer company," the company said in a press release.

Production will be transferred to Rieter’s Usti site in the Czech Republic.

Once the measures are complete, a cost reduction of over CHF 15 million is expected from 2019. For 2017, Rieter anticipates a negative impact on earnings of CHF 36 million. This includes provisions for restructuring costs of CHF 30 million and a one-time impairment of CHF 6 million. (RR)

Fibre2Fashion News Desk – India

More Rieter Management AG News... More Textiles News - Switzerland...