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| Around the turn of the century, anybody who was anybody said the airlaid market was booming. Several of its major players were undergoing significant line expansions, and industry professionals predicted that this capacity would lead to new applications. Three years later, this optimism has evaporated. Much of the capacity that came onstream during the boom times of 2000 remains idle, and at least one main airlaid producer appears to be on the verge of bankruptcy. Where once the attitude seemed to be that new capacity would herald new applications, now executives are aware of the importance of creating new categories for the airlaid market. Currently, the major uses for airlaid materials include feminine hygiene, wipes, tabletop and some filtration and packaging types. Feminine hygiene, for now, seems to have reached maturity, at least in the U.S. and Western Europe, as many manufacturers have already opted for the thinner, preformed airlaid core. Meanwhile, wipes continue to face severe competition from carded and spunlaced nonwovens. Furthermore, the commodity nature of this market has made it difficult for airlaid producer to make money on these products. Finally, tabletop continues to be strong but consumption in this area is not enough to sustain existing capacity. One segment long sought after by airlaid producers is the disposable baby diaper market. Currently, most swim diapers use airlaid material in their core, as does at least one specialty diaper brand, but, for the most part, manufacturers have not been quick to convert their lines to handle airlaid cores. Much of this reluctance relates to economics. A major diaper manufacturer would have to lay out millions of dollars to adapt its machinery to a pre-assembled airlaid core and, to date not one has been able to justify this expenditure. While airlaid cores are thinner and efficient, current diaper technology, using superabsorbent polymer and fluff pulp, has already allowed today’s diapers to be significantly thinner than diapers of several years ago. Airlaid’s failure to penetrate the disposable diaper industry has left it searching for new markets. The past several years has seen explosive proliferation in the wipes market with products available for a variety of household and personal care tasks. With wipes growth projected at 6-7% for the next several years, the volume of airlaid consumed by this market should continue to grow despite increased competition. However, experts say that this growth will still not be enough to meet existing capacity, let alone capacity that comes onstream in upcoming years. Therefore, applications currently unheard of for airlaid nonwovens are currently being developed, and these efforts could revolutionize the airlaid market of tomorrow. “There are some very specific applications being explored that, in my opinion, could really be successful,” remarked James Westphal of Milwaukee-based Troika Nonwovens. “The airlaid market of five years from now may not be the same as the one we know today.” This shift will be caused by new applications that will change the way airlaid is regarded. “I don’t think the industry can correct itself based on the same large customers that are in the industry today,” Mr. Westphal explained. “Hygiene cannot make a difference on its own.” The Core of the Industry Between 2000-2001, airlaid capacity in North America virtually doubled when both Buckeye Technologies and Concert Industries made major investments in the technology. Memphis-based Buckeye Technologies, the world’s largest airlaid producer, built a 50,000-ton-per-year machine in Gaston, NC, while Canadian company Concert, the second largest player, built two, side-by-side lines in Gatineau, Quebec. At the same time, smaller player Rayonier built a line to produce its NovaThin airlaid core material—the Jesup, GA-based company had until then been producing the material on borrowed space—and BBA Nonwovens completed its airlaid line in China.
While studies related to the feasibility of an airlaid diaper core continue to be of interest to Buckeye, the company is now focusing on existing applications for airlaid such as the disposable mops segment. Still, recognizing that it took nearly a decade to convince feminine hygiene manufacturers of the merits of airlaid, executives feel that it is only a matter of time before airlaid penetrates diapers. “There will have to be driving economic factors associated with a conversion,” Mr. Hall predicted. “Airlaid allows the manufacture of a better diaper. Period. But, the decision will depend on whether a consumer will pay for it.” As new applications are developed and existing ones expanded, Buckeye will continue to work on improving efficiencies in its airlaid business. Also, success on the fluff pulp side of the business, which provides diversification for Buckeye, has helped the company weather the storm. This has not been the case for Buckeye’s principal competitor, Concert Industries. While the company has won several contracts in the wipes arena, pricing pressures and a general economic slowdown, haves led the company to file for protection from its lenders. Also behind these troubles is Concert’s legal battle with Buckeye over festooning technology. Concert reportedly spent millions on festooning technology a judge later ruled infringed on Buckeye-owned patents. In addition to filing for protection, Concert has made several other moves to turn-around its business. For one, the company is looking for a buyer for its Charleston, SC facility, which the company acquired in 2000 through its purchase of ACI. If a buyer cannot be found, the site will be closed and its equipment will be transferred to another location. Additionally, Concert has appointed turnaround specialist Raoul Heredia as president. Mr. Heredia formerly served as CFO of Peerless Carpet Corporation where he undertook a reorganization of the company that ultimately led to its sale. Forging New Land New markets will be established through a combination of new technology and marketing zeal. While several executives declined to discuss specifics about the applications they are developing, they put product development at the top of their priority list. Paul Farren, vice president and general manager of nonwovens at Georgia-Pacific, Atlanta, GA, said the combination of spunlaced and airlaid technology, often called airlace, is expected to be an important part of the market in upcoming years. This material features outer layers of spunlaced combined with an airlaid pulp core to provide the softness and strength of spunlaced nonwovens at a 20-25% lower cost.
New bonding technology will also help advance the material. G-P, for example, recently added multibonded technology to an existing line. This process, which uses less latex bonding and more thermal bonding, requires fewer binders to create a loftier, softer fabric. Mr. Farren thinks the industry can expect further developments in bonding technology. Another company constantly searching for new airlaid markets is Rayonier. The company currently has the capacity to produce 12,000 tons of its NovaThin absorbent core material but is constantly looking for new technologies through its Engineered Absorbent Materials (EAM) growth platform. While much of Rayonier’s initial interest in airlaid was centered around absorbent core technology, recent market trends coupled with new product capabilities have led the company to expand into new areas. While executives would not be specific about markets of interest, they would say that key efforts have taken place in both fiber integration and processing technology to help expand airlaid’s presence in existing markets, such as absorbent hygiene products, as well as broadening its role into new areas. “In the future, the winners in the industry will be able to adapt their platforms to accommodate the market needs,” explained Kent Kvaal, general manager of EAM for Rayonier. “The changes will come from the market and what the m market demands from airlaid.” Making Machinery Also eager to advance the airlaid industry are its main machinery suppliers—M&J Fibretech and Dan-Webforming. Both based in Denmark, these companies are the leading experts in airlaid technology and are continuously examining ways to improve products and open up new markets. M&J has consistently developed processes with extremely high-speed throughputs despite high basis weights. This technology would lower the price of using an airlaid core and can hopefully lead to more interest in the material from disposable diaper and adult incontinence manufacturers. The incorporation of airlaid pulp into other technologies to increase airlaid’s role in the wipes market is also drawing interest. “Wipes continues to be a strong growth market,” explained Henning Skov Jensen managing director of M&J Fibretech. “This market is good but are constantly looking for new applications.” In addition to new applications, airlaid is expanding globally as several Asian companies recently commissioned new equipment. Already, at least three Chinese companies are set to begin production on airlaid lines next year. These companies are interested in producing wet wipe materials for domestic consumption and are not expected to further contribute to the overcapacity in North America and Europe. “Asia is where the business is,” explained Jens Erik Thordahl, managing director of Dan-Web. “This technology will be huge in Asia and there is still a lot of room for growth there.” Searching For Something
“The feminine hygiene industry was able to develop a product that better met consumer needs and improved operational efficiencies, which more than offset any potential increases in material costs,” explained Frank Iezzi, global sales manager of Rayonier’s EAM business. “This balance of product performance, consumer-perceived benefit and line efficiency has not been attained in baby diapers. We’re not saying it won’t get there, but there is still a way to go.” Furthermore, it is unclear whether or not diaper consumers desire the added thinness an airlaid core offers. Therefore penetration into new markets is the safest best for manufacturers today as they ride out the overcapacity situation, which many experts say continue for a couple of more years. “We have been in overcapacity situations before,” Dan Web’s Mr. Thordahl explained. “It takes two or three years for the industry to swallow this, and then somebody builds a new line and overcapacity is back again.” |
