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Oerlikon reorganizes textile machinery business

Switzerland headquartered Oerlikon Group has announced it will simplify its textile machinery businesses to further increase competitiveness and profitability. The three key elements of the change are the consolidation of the five textile machinery and components businesses into three Business Units (BUs), the relocation of the textile division's headquarters to Shanghai, and increased R&D investment in both Germany and Asia to around CHF 80 million. A new Manm

22nd November 2011

Innovation in Textiles
 |  Pfäffikon

Protective, Medical/Hygiene, Transport/​Aerospace, Clothing/​Footwear, Industrial

Oerlikon booth at ITMA Asia + CITMESwitzerland headquartered Oerlikon Group has announced it will simplify its textile machinery businesses to further increase competitiveness and profitability.

The three key elements of the change are the consolidation of the five textile machinery and components businesses into three Business Units (BUs), the relocation of the textile division's headquarters to Shanghai, and increased R&D investment in both Germany and Asia to around CHF 80 million.

A new Manmade Fibers BU will comprise Oerlikon Barmag and Oerlikon Neumag, the new Natural Fibers BU will consist of Oerlikon Schlafhorst and Oerlikon Saurer and the structure of the Textile Components BU remains unaffected by the realignment. Branding will not change.

Oerlikon Textile Executives, including the CEO and CFO, will relocate to Shanghai in the first quarter of 2012. By end of 2012 more than 40 % of all Textile senior management positions will be based at Oerlikon's new office in Shanghai. Oerlikon Textile will increase its 2012 R&D investment in Germany to around CHF 60 million (worldwide to around CHF 80 million) and start ramping up R&D capacity in China.

The German R&D organization will focus on the continued development of innovations such as the recently launched Autocoro 8 from Oerlikon Schlafhorst. The Asian R&D capability will specialize in regional adaptation.

In line with the new organizational structure, Clement Woon, an internationally experienced executive will succeed Thomas Babacan as Segment CEO on 1 January 2012.

 "We have seen strong improvement in our Textile business, resulting in record margins. With the announcement today we are positioning the Segment even closer to our largest customers, consistent with our strategy to further increase efficiency and profitability. I would like to thank Thomas Babacan for his dedication to Oerlikon and welcome Clement Woon to the company," Oerlikon's CEO, Dr. Michael Buscher said.

The company says today's announcement supports the continuation of the focus on operational discipline, lifting the underlying performance of Oerlikon Textile to a new level, building on an already strong market position in Asia. Thomas Babacan will hand over his management responsibilities as Segment CEO to Clement Woon (52, a citizen of Singapore) on 1 January 2012 and leave the company.  

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