Promising cooperation between two companies in Eastern Switzerland (20/09/2005)
sia Abrasives starts mass production resulting from collaboration with Cilander
In September 2005, after months of testing, sia Abrasives started using the new finished fabric produced by AG Cilander as backing material for making coated abrasives. Pre-production has demonstrated that the fabric measures up to the high quality standards required by sia Abrasives and is ready for mass production.
sia Abrasives and Herisau-based AG Cilander have been collaborating in the development and procurement of textile fabrics for roughly a year. Under their agreement, Cilander is developing and producing finished fabric (backing for coated abrasives) exclusively for sia Abrasives. Smooth integration of the new fabric into sia Abrasives’ manufacturing process is very important for the company’s strategic direction. Underpinned by the two companies’ expertise and geographic proximity, sia Abrasives is bringing to market a premium product expected to provide a competitive edge, improve cost structure and significantly streamline the logistics chain. It will also reduce the company’s dependence on suppliers for finished fabric sourcing.
High-level expertise
Collaborating closely over the past months, sia Abrasives and Cilander have invested in developing a fabric that meets the high quality requirements for coated abrasives backing. The expertise of sia Abrasives’ research and development department has been successfully combined with Cilander’s finishing skills. In the finishing process, the textile gray fabric is impregnated and coated to produce a stable starting material. This special finish must measure up to the highest quality standards to help achieve the best results in the later abrasive process. This places very high demands on both the finish performance and textile gray fabric. Before starting production for sia Abrasives, Cilander spent some CHF 6 million on a new production line and its building. The companies have therefore entered into a long-term partnership.
Opening up new markets
Under the collaboration, sia Abrasives and AG Cilander next plan to supply these backings to third-party customers as well, thereby opening up a new market. To market these products, they will jointly establish a new company.
The sia Group based in Frauenfeld ranks among the world’s top three suppliers of coated abrasives. It develops, manufactures and markets complete abrasive systems tailored to specific requirements and applications for surface preparation and finishing of all kinds. This commitment has made sanding and grinding into true surface technologies. Employing some 1,000 people worldwide, sia Abrasives posted net sales of CHF 252.1 million and operating income (EBIT) of CHF 24.7 million for 2004. sia Abrasives Holding AG is listed on SWX Swiss Exchange and generates more than 90% of its sales outside Switzerland.
For further information
Peter A. Schifferle, CEO and Executive Director Gerhard Mahrle, CFO and Investor Relations Phone: +41 52 724 45 75 Fax: +41 52 724 45 70 E-mail: ir@sia-abrasives.com Internet: http://www.sia-abrasives.com/
® Correct nomenclature for sia Abrasives Holding AG
As there are other companies and organizations that use the same abbreviation as our company, we would be grateful if you could help to avoid any misunderstandings by always writing our name as follows: sia Abrasives (never just sia by itself).
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