Rieter Holding says its decision to split its automotive component and textile machinery business will allow it to target both sectors’ cycles independently.
The Swiss-headquartered company will create a new Autoneum division to be put on the Zurich stock exchange from mid-May, dependent on securing shareholder approval at the AGM on 13 April.
Both divisions will be separated legally and financially to be positioned as stand-alone entities on the capital markets.
Autoneum will employ around 8,000 people globally in the components sector, with the company keen to stress there would be no staffing implications from the spin-off.
“There will no job losses connected with this transaction,” a Rieter spokesman told just-auto from Switzerland. “One of the [split] triggers was we had completely different cycles in the automotive and textile divisions – we realised it does not make any sense.”
Autoneum has categorised its portfolio into six product lines: interior floor; underbody; engine bay; body treatment interior trim and trunk and will supply major OEMs around the world.
Autoneum said it will serve the mature markets of Europe and North America, as well as South America, while participating in emerging market growth, particular in Asia (excluding Japan).
“The proposed separation and making the divisions formally independent is a logical next step we are now taking,” said Rieter executive chairman Erwin Stoller.
The Rieter spokesman added the company was not affected by the current situation in Japan as it did not supply the country, although it had a joint venture with Nittoku.