01.01.02
Location: Nashville, TN
Sales: $750 Million
Description: Key Personnel
Wayne Sanders, chairman and CEO; Thomas Falk, president and COO; Robert Abernathy, group president, Business to Business Sector; Sean Erwin, president, Nonwoven Fabrics Operations and Technology; Rosalind Brewer, vice president, Nonwoven Fabrics Business
Nonwovens Manufacturing Facilities
Corinth, MS; Balfour, NC; Lexington, NC; LaGrange, GA; Neenah, WI
ISO Status
Certification achieved in Lexington, NC and LaGrange, GA; other facilities in process
Processes
Spunbond, melt blown, SMS, BCW, hydroentangled and Coform
Brand Names
Accord fabrics, Blockit protective fabric, Breeze facemask media, Cyclean filtration media, Dustop protective fabric, Evolution 4 protective fabric, Intrepid filtration media, Noah protective fabric, Powerloft filtration media, Ultimet filtration media
Major Markets
Electrical, filtration, furniture, hygiene, industrial, medical, packaging, protective, sorbents, textile linings, and wet wipes
For Kimberly-Clark, Dallas, TX, a company that distinguishes itself by being a large consumer products company as well as a roll goods producer, 2001 was an excellent year. While a large portion of its nonwovens production is consumed by its end use businesses, the company freely focuses its external roll goods business on high performance products and specialty markets. Concentrating on these high performance products, the external roll goods business achieved record results for 2001.
“A lot of our success in external roll good markets is due to our research focus on value added materials developed from our proprietary technologies,” explained J.C. Sneyd, director of marketing and sales, Nonwoven Fabrics Business. “We have strategically decided to emphasize high performance materials where advancements are readily perceived by the fabric’s end users.”
While many companies involved in nonwovens sales are going through lean times, K-C is reporting positive results that company management attributes to a number of factors. Chief among these factors is a strong sense of industry trends generated through its consumer products business, a company history ripe with technology and innovation and a continued focus on research and development. Within the past two years, the nonwovens industry has seen several companies scale back core research and development in an effort to trim costs, but Mr. Sneyd maintained that core research and development remains the key driving force behind the growth of K-C’s roll goods business.
“Maintenance of core R&D, going beyond minor incremental product ‘tweaks,’ is critical to fueling future growth,” Mr. Sneyd said, adding that this is not necessarily the story for the nonwovens industry as a whole. “We continue to see significant growth in our market segments, all being fueled by our investments in innovative technology. Companies scaling back could place themselves in danger of not realizing the innovation needed for future growth.”
In December 2001, K-C formed a new Business to Business entity composed of the K-C Professional, Healthcare, Neenah Paper, Technical Paper and Nonwoven Fabrics Business Units. Comprising nearly 25% of the company’s total sales, the new division is being led by group president Robert Abernathy.
The reorganization is expected to benefit all the component sectors, allowing them to realize synergies in going to market.” Mr. Sneyd said. “There is more interface between businesses and learning that is benefiting all functional areas.”
One key area for K-C’s Nonwoven Fabrics Business in recent years has been filtration. The dynamics of this segment allow customers to appreciate the innovative and differentiated products that K-C has to offer. In fact, K-C’s presence in the filtration market has become so sound that end use customers actually recognize K-C media in filtration products. Among the brand names are Intrepid, for commercial, industrial and residential heating ventilation and air conditioning (HVAC) applications, and Powerloft and Fathom, for commercial liquid applications. All three of these products have demonstrated significant benefits to the end user including air cleanliness, less filter changes and cost savings. “We hear good things about our media’s performance and we can see it in its successful growth,” Mr. Sneyd explained. “Our customers tell us our approach to the market is unique and our media brand identity along with superior performance has contributed to their success.”
In terms of technology, K-C does not rely on borrowed, off-the shelf manufacturing platforms and instead creates its own equipment for producing nonwovens. This allows the company to create proprietary products that may not be readily challenged by competitive substitutes. While its spunbond, melt blown, SMS, BCW, stretchable, hydroentangled and Coform technologies are readily seen in the marketplace, K-C does not comment on its manufacturing capabilities or its future plans for expansion and improvements. One thing that Mr. Sneyd was able to reveal, however, is the company’s continued commitment to improving its technology. “Honing of capabilities and improving our products is something we do constantly,” he said. “We are constantly improving our base manufacturing.”
Looking globally, the majority of K-C’s external roll goods business has historically been conducted within North America. This is starting to change as the business and its distributors increase shipments to Europe, Asia and South America. Some of this increase in international sales has even resulted from European customers approaching K-C based solely on brand recognition. “We believe our branded products are being recognized and wanted in areas beyond our initial target markets,” said Mr. Sneyd.
On the consumer products side of K-C’s business, the company continues to benefit from a strong position in a number of personal care segments. Last year, the company’s personal care business, which includes Huggies diapers, Pull-Ups training pants, Kotex feminine hygiene products and Depend and Poise adult incontinence items, achieved sales of $3.27 billion. Sales in the segment have been boosted recently by the acquisition of Italian baby diaper brand Lines, a new diaper manufacturing plant in the Czech Republic and, most recently, the acquisition of its remaining stake in K-C Australia. K-C Australia, which has operated as a joint venture between K-C and Amcor Limited for four decades, is the leading manufacturer of tissue, personal care and healthcare items in Australia and New Zealand with annual sales of approximately $400 million.
K-C’s consumer products business has also benefited by the surge of nonwovens–based products seen in many segments of the consumer products market in recent years. In April, the company launched The Neat Sheet, a water-repellent, cloth-like ground cover that is an alternative to a bulky beach blanket, bed sheet or tarp. It is big enough to comfortably seat a family of four yet small and light enough to be stored in a beach bag, backpack or picnic basket. This product was reportedly created to meet an unmet need in the consumer market that was first realized during consumer focus groups for Huggies Little Swimmers disposable swim pants.
K-C continues to make strides in its flagship business in the personal care segment. During the past 12 months, the company has announced improvements to both its Huggies baby diaper and Pull-Up training pants lines. In July, K-C developed a first-of-its kind diaper with all-around stretch for a more secure and comfortable fit for its Huggies Supreme diaper line. The diaper features a stretchable outer cover, a stretch waistband and stretch ears and large tabs to make fastening a diaper easier. In April, the company launched an improved Pull-Ups training pant that is 30% thinner for an improved fit under children’s clothing and features bolder, more colorful graphics for an enhanced gender-specific look. In short, the new Pull-Ups now look and feel more like “big kid” underwear than ever before. This latest modification is just one of many improvements K-C has made to its Pull-Ups product since introducing them and subsequently creating the market for disposable training pants in 1989. Since the original introduction, Pull-Ups have been improved through the addition of leak guards, designs that fade when wet and the introduction of larger sizes for children who toilet train later.
Looking toward the future, K-C will focus on several strategies to continue success in its external roll goods business. For one, the company will continue to capitalize on market-unique, K-C-developed technologies. Additionally, K-C will continue to explore branding opportunities that have proven to be successful and created long term loyalty among its customers.
“We continue to enjoy exceptionally long-term relationships with our customers,” explained Mr. Sneyd. “Our focus has been to choose segments that value product performance, continue to innovate and partner to make our customers successful.”
Sales: $750 Million
Description: Key Personnel
Wayne Sanders, chairman and CEO; Thomas Falk, president and COO; Robert Abernathy, group president, Business to Business Sector; Sean Erwin, president, Nonwoven Fabrics Operations and Technology; Rosalind Brewer, vice president, Nonwoven Fabrics Business
Nonwovens Manufacturing Facilities
Corinth, MS; Balfour, NC; Lexington, NC; LaGrange, GA; Neenah, WI
ISO Status
Certification achieved in Lexington, NC and LaGrange, GA; other facilities in process
Processes
Spunbond, melt blown, SMS, BCW, hydroentangled and Coform
Brand Names
Accord fabrics, Blockit protective fabric, Breeze facemask media, Cyclean filtration media, Dustop protective fabric, Evolution 4 protective fabric, Intrepid filtration media, Noah protective fabric, Powerloft filtration media, Ultimet filtration media
Major Markets
Electrical, filtration, furniture, hygiene, industrial, medical, packaging, protective, sorbents, textile linings, and wet wipes
For Kimberly-Clark, Dallas, TX, a company that distinguishes itself by being a large consumer products company as well as a roll goods producer, 2001 was an excellent year. While a large portion of its nonwovens production is consumed by its end use businesses, the company freely focuses its external roll goods business on high performance products and specialty markets. Concentrating on these high performance products, the external roll goods business achieved record results for 2001.
“A lot of our success in external roll good markets is due to our research focus on value added materials developed from our proprietary technologies,” explained J.C. Sneyd, director of marketing and sales, Nonwoven Fabrics Business. “We have strategically decided to emphasize high performance materials where advancements are readily perceived by the fabric’s end users.”
While many companies involved in nonwovens sales are going through lean times, K-C is reporting positive results that company management attributes to a number of factors. Chief among these factors is a strong sense of industry trends generated through its consumer products business, a company history ripe with technology and innovation and a continued focus on research and development. Within the past two years, the nonwovens industry has seen several companies scale back core research and development in an effort to trim costs, but Mr. Sneyd maintained that core research and development remains the key driving force behind the growth of K-C’s roll goods business.
“Maintenance of core R&D, going beyond minor incremental product ‘tweaks,’ is critical to fueling future growth,” Mr. Sneyd said, adding that this is not necessarily the story for the nonwovens industry as a whole. “We continue to see significant growth in our market segments, all being fueled by our investments in innovative technology. Companies scaling back could place themselves in danger of not realizing the innovation needed for future growth.”
In December 2001, K-C formed a new Business to Business entity composed of the K-C Professional, Healthcare, Neenah Paper, Technical Paper and Nonwoven Fabrics Business Units. Comprising nearly 25% of the company’s total sales, the new division is being led by group president Robert Abernathy.
The reorganization is expected to benefit all the component sectors, allowing them to realize synergies in going to market.” Mr. Sneyd said. “There is more interface between businesses and learning that is benefiting all functional areas.”
One key area for K-C’s Nonwoven Fabrics Business in recent years has been filtration. The dynamics of this segment allow customers to appreciate the innovative and differentiated products that K-C has to offer. In fact, K-C’s presence in the filtration market has become so sound that end use customers actually recognize K-C media in filtration products. Among the brand names are Intrepid, for commercial, industrial and residential heating ventilation and air conditioning (HVAC) applications, and Powerloft and Fathom, for commercial liquid applications. All three of these products have demonstrated significant benefits to the end user including air cleanliness, less filter changes and cost savings. “We hear good things about our media’s performance and we can see it in its successful growth,” Mr. Sneyd explained. “Our customers tell us our approach to the market is unique and our media brand identity along with superior performance has contributed to their success.”
In terms of technology, K-C does not rely on borrowed, off-the shelf manufacturing platforms and instead creates its own equipment for producing nonwovens. This allows the company to create proprietary products that may not be readily challenged by competitive substitutes. While its spunbond, melt blown, SMS, BCW, stretchable, hydroentangled and Coform technologies are readily seen in the marketplace, K-C does not comment on its manufacturing capabilities or its future plans for expansion and improvements. One thing that Mr. Sneyd was able to reveal, however, is the company’s continued commitment to improving its technology. “Honing of capabilities and improving our products is something we do constantly,” he said. “We are constantly improving our base manufacturing.”
Looking globally, the majority of K-C’s external roll goods business has historically been conducted within North America. This is starting to change as the business and its distributors increase shipments to Europe, Asia and South America. Some of this increase in international sales has even resulted from European customers approaching K-C based solely on brand recognition. “We believe our branded products are being recognized and wanted in areas beyond our initial target markets,” said Mr. Sneyd.
On the consumer products side of K-C’s business, the company continues to benefit from a strong position in a number of personal care segments. Last year, the company’s personal care business, which includes Huggies diapers, Pull-Ups training pants, Kotex feminine hygiene products and Depend and Poise adult incontinence items, achieved sales of $3.27 billion. Sales in the segment have been boosted recently by the acquisition of Italian baby diaper brand Lines, a new diaper manufacturing plant in the Czech Republic and, most recently, the acquisition of its remaining stake in K-C Australia. K-C Australia, which has operated as a joint venture between K-C and Amcor Limited for four decades, is the leading manufacturer of tissue, personal care and healthcare items in Australia and New Zealand with annual sales of approximately $400 million.
K-C’s consumer products business has also benefited by the surge of nonwovens–based products seen in many segments of the consumer products market in recent years. In April, the company launched The Neat Sheet, a water-repellent, cloth-like ground cover that is an alternative to a bulky beach blanket, bed sheet or tarp. It is big enough to comfortably seat a family of four yet small and light enough to be stored in a beach bag, backpack or picnic basket. This product was reportedly created to meet an unmet need in the consumer market that was first realized during consumer focus groups for Huggies Little Swimmers disposable swim pants.
K-C continues to make strides in its flagship business in the personal care segment. During the past 12 months, the company has announced improvements to both its Huggies baby diaper and Pull-Up training pants lines. In July, K-C developed a first-of-its kind diaper with all-around stretch for a more secure and comfortable fit for its Huggies Supreme diaper line. The diaper features a stretchable outer cover, a stretch waistband and stretch ears and large tabs to make fastening a diaper easier. In April, the company launched an improved Pull-Ups training pant that is 30% thinner for an improved fit under children’s clothing and features bolder, more colorful graphics for an enhanced gender-specific look. In short, the new Pull-Ups now look and feel more like “big kid” underwear than ever before. This latest modification is just one of many improvements K-C has made to its Pull-Ups product since introducing them and subsequently creating the market for disposable training pants in 1989. Since the original introduction, Pull-Ups have been improved through the addition of leak guards, designs that fade when wet and the introduction of larger sizes for children who toilet train later.
Looking toward the future, K-C will focus on several strategies to continue success in its external roll goods business. For one, the company will continue to capitalize on market-unique, K-C-developed technologies. Additionally, K-C will continue to explore branding opportunities that have proven to be successful and created long term loyalty among its customers.
“We continue to enjoy exceptionally long-term relationships with our customers,” explained Mr. Sneyd. “Our focus has been to choose segments that value product performance, continue to innovate and partner to make our customers successful.”