The technical assets of Italian high-end textile finishing machinery manufacturers Mezzera and Jaeggli are entering China through a licensed production model. In July 2026, EFI Reggiani signed a multi-year license and manufacturing agreement with Danitech Engineering and Solutions Srl (Italy) and its Chinese subsidiary, Suzhou Danitech Intelligent Technology Co., Ltd. The agreement covers the full portfolio of Mezzera and Jaeggli textile finishing machinery, signaling a new phase in the transfer of European finishing technology to China.
The Logic Behind Technology Licensing
This is not a simple equipment sale but a systematic output of intellectual property. Mezzera has decades of expertise in wet processing, with its washing, desizing, mercerizing, and dyeing machines holding a strong position in European mills. Jaeggli specializes in continuous rope treatment. Through this license, Danitech will localize production at its Suzhou factory while EFI Reggiani retains control over technical standards and quality. For China's dyeing and printing industry, this means lower procurement costs and shorter lead times. Importing an Italian Mezzera washing machine previously took 6 to 9 months, with prices ranging from RMB 2 million to 5 million. Localized manufacturing could cut lead times to under 3 months and reduce costs by 20% to 30%. This is a tangible benefit for mills in clusters like Keqiao, Shengze, and Shishi.
Impact on Industrial Clusters
Keqiao, the world's largest printing and dyeing base, needs to replace aging washing and mercerizing equipment to meet environmental standards. Suzhou Danitech's location provides a logistics radius of under 200 km to the Yangtze River Delta core area. Equipment maintenance and technical support response times will improve significantly, shifting from reliance on Italian engineers to local teams. Another key factor is process upgrade. Mezzera's machines are known for low liquor ratios and high energy efficiency, with water consumption 30% to 40% lower than conventional equipment. As mills in Jiangsu and Zhejiang face stricter wastewater and energy consumption limits, this technology licensing directly addresses the urgent need for upgrades. Some medium-sized dyeing plants in Shengze are already evaluating localized Mezzera equipment to replace older domestic models and reduce unit energy consumption.
Implications for Equipment Procurement and Foreign Trade
From the buyer's perspective, localization does not mean quality compromise. The agreement retains EFI Reggiani's control over key components and process parameters. Core parts will still be supplied from Italy, while assembly and sheet metal work will be done in Suzhou. This means end-users can access near-original process quality at near-domestic prices. However, buyers must distinguish authorized manufacturing from counterfeit imitation—the former comes with full technical documentation and continuous upgrade support, while the latter carries IP risks. For foreign trade companies, this agreement signals a shift in European equipment suppliers' China strategy. The old model of complete machine export is being replaced by deeper cooperation like technology licensing and joint ventures. Trading companies focused on equipment agency may need to transition from pure trade to technical service roles to maintain their position in the supply chain.