Spunmelt Savvy
today’s economic pressures make the margin for error slimmer than ever for spunmelt makers
By Ellen Wuagneux
Associate Editor
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Now, for the good news: Hygiene and medical markets—both heavily targeted by spunmelt producers—are less affected by economic fluctuations and have held their own despite consumer spending slumps and wild fluctuations in resin and energy pricing. Spunmelt materials as a whole have a strong base from which to weather the current storm; in the last decade they have enjoyed a healthy growth rate of more than 10% per year worldwide. This growth has come mostly from developed regions of the globe but also, slowly and steadily, from emerging markets where nonwoven-based disposable goods are just coming into the picture.
According to INDA’s predictions, consumption of spunmelt nonwovens is expected to continue over the coming five years at a moderate pace. “Even with this slowdown, spunmelt technologies are expected to account for almost half of all nonwoven production/consumption by 2012,” said Ian Butler, INDA’s director of market research and statistics.
In a report INDA tabled in early 2008, the worldwide production of spunmelt nonwovens in 2007, which included spunbond and meltblown materials, totaled 2.6 million tons. Spunbond materials produced from various polymers, spunbond composites and bicomponent fibers accounted for a vast majority (more than 90%) of the total. Monolithic meltblowns account for the balance. When it comes to polymers, polypropylene continues to be the primary resin used for spunmelt nonwovens, followed by polyester and polyethylene.
In terms of capacity, several investments have been announced for North America (most notably by Avgol, Fitesa, Companhia Providencia and PGI). More tonnage is expected to come onstream as spunmelt producer First Quality adds capacity and continues to forward integrate into the disposable diaper market. While the full impact of First Quality’s acquisition of Covidien’s diaper business has yet to be seen, for the time being, North America appears to have adequate capacity in the marketplace for current and future demand.
Not surprisingly, the loose capacity situation in North America, coupled with looming economic worries, have forced some companies to take a second look at plans for growth. Tight credit markets make expansion an even greater challenge as banks seek greater assurances on the success of potential investments.
