According to Rieter Textile Systems, a major textile machinery maker in Switzerland, orders totaling 417.3 million Swiss francs received by the company in the first half of 2008 were 61 % lower compared with the same period of the previous year, being in an extremely difficult business environment in contrast to the favorable one last year. The company has already eliminated 600 temporary positions, stopped new hiring and is encouraging early retirement, streamlining the business.
Sales in the first half of 2008 were 6 % lower at 664.7 million Swiss francs (about $610 million) and operating income was 55.4 million Swiss francs, a drop of 40.9%.

On the global textile machinery market, which had already been weakening since the final quarter of 2007, especially demand for synthetic staple fiber machinery has declined steeply. Due to high raw material prices and full yarn inventories and a more restrictive investment policy in China, textile makers have drastically reduced or postponed capital investment.

Rieter believes that the Asian textile machinery market still has potential later and will continue expansion of plants in India and China, but in accordance with current market trends, it will slow down its pace.