Given the ongoing consolidation process in the textile industry, this is an important step towards a successful future with sustainable earnings for the combined companies. The new group will be able to offer customers a comprehensive product line and a global service network. Sulzer Textil will continue its business as an operationally independent group. This includes the right to use the trade name "Sulzer Textil". The parties agreed not to disclose the transaction price.

The divestiture of Sulzer Textil is part of the focusing strategy of the Sulzer Corporation. Among the planned divestitures, Sulzer Turbo and Sulzer Infra have already been sold. As announced, the divestiture of the last non-core division, Sulzer Burckhardt, is being prepared.

Fred Kindle, CEO Sulzer Ltd, commented: "I am pleased that Sulzer Textil is being acquired by a strategically well positioned group. For Sulzer, this is an important step towards completion of the divestiture program, which will generate CHF 400 million in net proceeds for Sulzer."

Ulrich Bolleter, president of Sulzer Textil, said: "In view of our strengths in quality, product innovation and services together with the environment of Promatech and the Itema Group, I have full confidence in the long-term future of Sulzer Textil."

Miro Radici, Chairman of the Itema Group, declared: "With the acquisition of Sulzer Textil, we will gain market leadership in the worldwide weaving machinery business. The synergy between the main business areas allows the Itema Group to offer its customers a comprehensive range of innovative products and services to the highest quality standards."

Sulzer Textil offers the broadest range of weaving machines from rapier to projectile to multi-phase technology. Regarding air-jet weaving machines Sulzer Textil has been collaborating for many years with Toyoda Automatic Loom Works (Japan). The strengths of Sulzer Textil include its well-established global sales and service network, innovative products and the high quality of its customer support services. Sulzer Textil, with sales of EUR 440 million (CHF 684 million) in 2000, employs around 1850 people in total (including 133 apprentices), about 400 of whom in Rüti (Switzerland), 1000 in Zuchwil (Switzerland), 300 in Schio (Italy) and 150 in the global sales and service network.

Promatech (sales in 2000: EUR 300 million; employees: about 750) is part of the Itema Group which is active in four market areas: weaving machines, winding machines, accessories and high-technology electronics. The Itema Group controls the following companies: Promatech (with the two well established weaving machine brands Somet and Vamatex), Savio, Fimtextile, Nuova OMV, Cincla, Actex, Eutron, and Saar. 

The Itema Group can count on 10 production sites, 1900 employees and a business presence in more than 90 countries. Sales for 2000 totalled EUR 560 million. Around 6% of Group annual turnover is invested in research and development.