China Investor Takes over 120-Year-Old German Knitting Machine Maker

Why It Matters

The deal underscores accelerating Chinese consolidation in European industrial machinery, reshaping competitive dynamics and preserving critical jobs. It also highlights the pressure on European manufacturers to specialize in high‑value niches as low‑cost Asian producers expand.

Key Takeaways

• Huixing Machinery acquires German knitting machine maker Mayer & Cie.
• Mayer & Cie filed bankruptcy after losing price competition to Chinese rivals.
• New ownership promises to retain R&D and re‑hire laid‑off staff.
• European machines cost ~20% more but offer longer lifespan and tech edge.
• Analysts cite prior Chinese takeovers improving margins for similar German firms.

Pulse Analysis

Chinese firms have increasingly turned to Europe’s mature industrial base to secure technology, market access, and brand credibility. Recent high‑profile purchases—such as Shanghai‑listed ShangGong’s takeover of Duerkopp Adler and Santoni’s acquisition of Terrot—illustrate a broader strategy of vertical integration rather than pure technology theft. By acquiring established manufacturers, Chinese investors can bypass lengthy certification processes, tap skilled workforces, and instantly enter markets where European reputation still commands premium pricing.

Mayer & Cie, founded in 1903, was renowned for its high‑speed circular knitting machines capable of over 12 million stitches per minute, a key asset for global apparel brands. However, the company’s cost structure could not match state‑subsidized Chinese rivals offering machines up to 20% cheaper. Coupled with inflationary pressures from the US‑China trade dispute and the Ukraine war, the firm’s order book collapsed, leading to a September insolvency filing and the layoff of most of its 200 employees. The acquisition by Huixing, based in Quanzhou, promises to preserve the Albstadt R&D hub and gradually restore the workforce, mitigating political concerns about job losses.

For European textile machinery makers, the Mayer & Cie case signals a need to double down on differentiation. While Asian manufacturers dominate volume segments, European firms retain advantages in durability, energy efficiency, and compliance with stringent EU regulations. Targeting niche applications—such as medical‑grade non‑wovens or specialized filtration fabrics—and expanding into underserved nearby markets like North Africa and Southern Europe could protect margins. Ultimately, the industry’s resilience will hinge on balancing cost competitiveness with innovation and sustainability, areas where European expertise remains a decisive edge.