CITME 2004 Review

The world's largest textile machinery market continues its growth.By Carmen Pang, Executive Editor; Jim Borneman, Editor, Textile World

CITME Review
By Carmen Pang, Executive Editor,and Jim Borneman, Editor, Textile World2004 CITME: Continuation Of Growth

The China pavilion, packed with companies of all sizes and serving all sectors of the textile industry, was the largest hall at CITME 2004.Beijing attracts textile technology from around the globe to support the world's largest market for textile machinery.China’s growth as one of the leading markets for textile machinery is well documented. However, the continuation of this position is always a topic for debate, as many wonder how long the appetite for new textile technology can last. Moreover, how will the recent “cooling” policies of the government affect future investment? Will the local equipment manufacturers begin a stronger directive toward the export of textile machinery? As seen at the 2004 China International Textile Machinery Exhibition (CITME), for many European machinery companies, the journey toward supplying and manufacturing in China has been completed. Heiner Eberli, head of marketing at Switzerland based Rieter Textile Systems, commented, “This CITME, we are exhibiting in the Chinese pavilion because Rieter has become an insider in China. We are manufacturing equipment in Changzhou, 200 kilometers north of Shanghai. We started with filament machinery and on the spun system, the RSB autoleveler draw frame. We continued with preparation-precleaner for the blowroom. The new BT201 was designed for China. This is the first step toward a complete Chinese blowroom line. We hope Chinese customers take note of our continued commitment to China.” Rieter also will open a Spin Center in Shanghai to showcase the R40 rotor, ring with compact K44, draw frames; and to show, demonstrate and run training courses for Rieter customers.FlexiRotorS 3000/DuoSpinner China DebutCITME 2004 attendees and exhibitors questioned why Savio Macchine Tessili S.p.A., Italy, would exhibit the FlexiRotorS 3000/DuoSpinner in China, a machine known for flexibility and automation. Fulvio Galetto, area sales manager, explained: “This is the first showing in China; this, in fact, is a section of a machine sold to Dongying Dahai Cotton Product Co. Ltd. According to recent International Textile Manufacturers Federation data, China is becoming a very important open-end spinning market. “There are two segments, often in the same plant: one for export, which demands automation, and another for the local market, which can use manual equipment where the rotor speed is limited to 80,000 revolutions per minute (rpm).”By way of explanation, manual piecing and doffing are possible if the rotor speed is less than 100,000 rpm. This means, according to Savio, that a 100-percent cotton Ne 6 to Ne 12 count yarn is possible. In order to achieve Ne 14 to 24 counts, rotor speeds above 100,000 rpm, and thus automation, are necessary. “Our segment will be the greater-than-12-Ne counts, where costs dictate the demand for automated piecing and doffing. In the future, you will see a higher demand for automation and companies will invest,” said Paolo Puntoni, Savio’s manager of marketing and overseas branches. Savio's Fulvio Galetto Wilfried Gothmanns, sales manager, Trutzschler GmbH, Germany, said Trutzschler has been active in China since 1964 and is currently producing machinery near Shanghai. Regarding future developments, Gothmanns said, ”These will be less speed-oriented due to fiber limitations. Instead, new machines will enhance quality and provide easy maintenance, efficiency and automatic settings.”China also continues to be one of the top three markets for Germany based Spindelfabrik Suessen GmbH, reported Peter Stahlecker, managing director. “China, India and Pakistan are our three major markets with Pakistan being the most active, then China and India,”he said. “In ring, we are active with Compact Elite and our collaboration with Jingwei Machinery (Group) Co. Ltd. in China has been very positive. In open-end spinning, we are active in the U.S. and Turkey, where there are large populations of open-end machines.”While many international machine makers are eyeing the export opportunities in Asia, they may be in for a surprise -- many of China’s machine makers also are after the same markets, including India, Pakistan, Turkey and Southeast Asia. FlexRotorS 3000/DuoSpinnerTake Jiang Yin Machine-Building Inc. for example. One-third of this Jiangsu province-based company’s sales are to overseas buyers in, among others, Pakistan, Bangladesh, Vietnam, Indonesia and Uzbekistan.”Right now, our biggest export market is Pakistan. We export mostly cotton carding machines,” said Yang Sheng, product development section chief.” But, our most important market is the domestic market. Domestically, we sell to every region of China and our customers are mostly cotton weaving companies.”Jiang Yin operates one facility, whose 700 employees turn out 1,000 machines annually. The company’s annual turnover is about 80 million Chinese yuan. Yang said the company invests about 2 million yuan in research and development every year on new technology. At the show, the FA 212, FA 213, FA 218 and FA 219 carding machines were highlighted. The FA 212 is the biggest seller in the domestic market, while the FA 219 is a new addition to the family. Jinwei's model 1530 ring spinning machine made its debut at CITME.Another company that is slowly growing its export business is Zhejiang province-based Zhejiang Rifa Textile Machinery Corp. “We export to Pakistan, India, Bangladesh, Vietnam, Mongolia and Southeast Asia,” said Yu Hai-Yun, president and general manager. ”The quantity is very small, but it is growing year by year. We have agents in Vietnam and Pakistan. As long as there is business and as long as it makes money, we want to go to that market.” The private enterprise’s five divisions all operate under one roof in a 34,000-square-meter plant. Its annual revenue reaches 400 million yuan and it employs about 350 workers, of which 80 are engineers. The company’s key competence includes compact spinning and air-jet weaving technologies. At the show, it unveiled the RFCS510 compact spinning system, which according to Yu, is among the best in the country. Rifa Textile Machinery exhibited its RFJA10 air-jet loom at the show.Yu added that the company met with old and new customers at the show, and was able to come away with some new business. However, he also said that, compared to ShanghaiTex, the other key textile machinery show held in Shanghai during CITME’s off years, CITME only had half the visitor attendance. When asked about the elimination of textile quotas, he said, “It is an opportunity for both China and our company. But, the Chinese textile industry may not necessarily grow as much as many speculate because it depends on the government’s policy. In the past several years, the industry grew too fast and the government started to control the growth by limiting capital available to the industry.”Quality“The Chinese market is so important that we will setup operations, develop products and produce in China,” said Martin Bieri, Uster Technologies AG, Switzerland. “The new Uster Tester 4 SE is manufactured in Switzerland, but other new products will be developed in China for its particular market needs. “The new SE features Chinese language for reports and interfaces. The company said the new configuration is a “workhorse” model that provides value. As the first model to be sold in the local currency with no special procedures to purchase, Uster has placed more than 1,000 SX and SE in the past four years. “We anticipate to increase our market share by 30% for the midlevel producers and 80% for the higher-level producers,”said Bieri. Yang Sheng, Jiang Yin's product development section chief,with the company's new FA 219 carding machine.WeavingWith the full participation of weaving companies such as SMIT S.p.A., Italy; Lindauer Dornier GmbH, Germany; Itema Group, Italy; Tsudakoma Corp., Japan; Toyota Industries Corp., Japan; Jakob Muller AG, Switzerland; and Picanol, Belgium, weaving technology was well represented at CITME 2004. “We manufacture in China for China. Next year we will have a large presence at ShanghaiTex,” said Jo‘l Jegou, communication manager of Switzerland-based Staubli International AG, who added that the OPAL multi-layer leasing machine continues to gain interest. Reinhard Furrer, a marketing representative, said,” Of course China will continue to be an important market. There is a certain level of saturation, but investment is moving toward automation, which explains why automatic drawing and leasing with OPAL is becoming even more important.”Franz Miesbauer, Dornier Machinery (Shanghai) Co. Ltd., reported an “unexpectedly strong show. Miesbauer said the first two days saw a high level of interest toward weaving and finishing technologies for a variety of fabric types. “Promatech has a wide range of weaving machines with the Alpha, Mythos, Leonardo and K88. In each Asian market, we can offer different machines based on capability and price,” said Riccardo Mautino of Promatech S.p.A., Italy. “We cannot easily say what the future holds for China. It has been an incredibly strong market situation developing at a very strong pace, but it has many questions to answer, such as energy supply.” The Uster team: (left to right) Martin Bieri, Anson Xu,Tony Shen and Harold HokeRegarding other markets, Mautino said, ”Turkey, with a high-level industry, will continue to invest. It was our strongest market in 2003 and a strong second in 2004. Because we have a broad range of products, we intend to be present in every market and offer opportunities around the world. Spares and technical support will continue to grow in each market. Our goal is not just to sell, but to make Promatech a partner that weaving companies can count on.”Raffaele Micheletti, Jakob Muller’s retired Hong Kong-based general manager, said, ”China is still growing. Its industry is segmented into two parts -- a high-end market [in the eastern part of the country] that exports to the U.S. and Europe and a local industry [in the west]. Over time, the local market will shrink and some will take on high-end characteristics. As the market grows from east to west, it will absorb the lower quality capacity.”The MJB is the strongest seller in China, according to Jakob Muller, which has recently committed additional investment to its plant in Suzhou. Francesco Cecchinato, area sales manager, SMIT, spoke of the growth and importance of the Chinese market noting the shifts taking place in supplying the domestic market and the investment in mid and high level production installations. “Some products are at a very high level,” he said. “There are now larger homes in China and a growing demand for higher-level products. I believe [the domestic market] will be as important as the export market.”Interest ContinuesKurt Eppisser, project and sales manager at Switzerland-based Santex AG, said there is strong interest from companies in China. Fujian Fengzhu Textile, with eight Santex dryers and compactors, and Ningbo Youngor Group Co. Ltd., with four machines, are two examples. Meanwhile, he added, Hong Kong-based Victory City Co. Ltd., Texwinca Holdings Ltd. and Fountain Set (Holdings) Ltd. continue to be strong clients.“In addition, Turkey, Pakistan, India, Bangladesh and Central America remain strong markets with interests in knits and finishing wovens,” Eppisser said.“In 2004, we had to fight against the new policy of reduced industrial development,” said Luca Bardone, CIMI S.p.A., Italy. “We have been in the Chinese market for eight years and have more than 40 customers -- most are in the Zhang Jia Gang region, which is an important area for wool.” Bardone also spoke positively of other markets and pointed to South American clients in Columbia and Uruguay who are interested in investing. The management team of Fong's Industries Co. Ltd. and THEN Maschinen GmbH outlined the future of THEN,which was acquired by Fong's, at a press conference held during the show.
January/February 2005