01.01.02
Location: Austell, GA
Sales: $92 million
Description: Key Personnel
Brad Mortimer, president; Edmund Merchlinsky, general manager- industrial fabrics; Rush Clark, vice president & general manager-supply chain; Mike Jeziorski, business manager, geotextiles; John Dowdell, general manager, floor coverings; Ralph Clements, vice president and general manager, manufacturing, research and engineering
Plants
Hazlehurst, GA; Nashville, GA; Seneca, SC
ISO Status
All nonwoven fabric plants are ISO 9002 certified; R&D is ISO 9001 certified
Processes
Needlepunched, RFX fabric process
Brand Names
AdBac, Aptra, Duon, Petromat, RFX
Major Markets
Geotextiles, furniture fabrics, packaging, automotive, carpet backing, industrial applications
With its plans to be sold put on hold, roll goods producer BP Fabrics and Fibers Business Unit, Austell, GA, has been focusing on streamlining its operations and meeting its customers’ requirements to maintain its leadership position in the nonwovens industry. In November 2001, BP temporarily halted efforts to sell its Fabrics & Fibers business unit, a plan announced in January 2001, due to economic conditions. While a number of parties were reportedly interested in purchasing the unit, which produces woven and nonwoven materials, financing problems led the company to believe it wouldn’t get a fair valuation for the unit. The company will reportedly evaluate the sale of this unit in the future.
“There were a number of companies interested in this business,” explained Edmund Merchlinsky, general manager of industrial fabrics. “When BP elects to move forward with our sale, I expect there will continue to be a number of interested parties.”
The proposal to sell was a part of BP’s strategy to focus on its core petrochemical business. At the time the fabrics and fibers unit was put on the selling block so too was the company’s Plastics Fabrication group. In April, this led to the sale of four of BP’s German plants to RKW, Worms, Germany. Included in the sale was BP’s European nonwovens business, named Amoco Deutschland, which operated facilities in Gronau and Wasserberg, Germany. This sale also included BP’s facilities in Nordharn and Michelstadt, which specialize in producing the films for hygiene and medical applications and agricultural films and round bale nettings, respectively. Also in April, BP sold its performance films business to Parkside Flexibles, Staffordshire, U.K., a leading supplier of flexible packaging to consumer brands. Included in this sale were BP’s Darton, U.K. site which produces 18,000 tons of polyethylene films per year, and its Zlotow, Poland facility, where a wide range of flexible packaging materials are manufactured.
Turning back to its nonwovens production, BP Fabrics & Fibers is preparing itself for a rebound in the nonwovens industry as it waits for its parent company to put it back on the market. In terms of sales, about 15-20% of the unit’s business is related to nonwovens while the remaining centers around woven applications. The division produces approximately 300 million square yards of needlepunched nonwovens for the North American market and was able to remain successful despite the difficult economic climate. Still, practically every one of BP’s major business units—which include bedding and furniture, geotextiles, automotives and carpet backing—felt the impact of the economy.
BP’s activities within the furniture segment directly mirrored economic conditions. Because furniture is a segment often hit first by recession and consumer confidence problems, many furniture companies were forced to consolidate and some retailers ceased operations, making it a challenging year for the segment.
Meanwhile, the geotextiles segment has been characterized by flat or negative growth in recent years after having seen strong growth in the years leading up to 1999. Now that the boom times have ended for geotextiles, the market is characterized by a profusion of competitors as well as severe overcapacity issues. Despite these factors, company executives feel that BP is well poised for future growth in this market because of its leadership position and strong market channels. Once growth resumes in geotextiles or some of the excess capacity leaves the market, BP executives fully expect to benefit from this strong position.
BP’s automotives business primarily consists of interior fabrics and this segment was affected by reduced automotive builds as many domestic automotive companies curtailed production to reduce their inventory levels in 2001. So far, 2002 has been more optimistic as automotive builds have begun to rebound.
The carpet backing arm of the business has received a boost from the introduction of Matrix, a needlepunched composite floor covering for carpet backing applications requiring high dimensional stability. For instance, Matrix is ideal for niche areas such as carpeting with strong surface graphics. “This is designed for applications that require increased dimensional stability,” Mr. Merchlinsky explained, “for commercial areas that are more demanding and need toughness.”
While most of its key markets were adversely affected by the poor economy, BP executives said it is a true testament to its strategy that the company was able to remain successful in 2001. Much of this success is related to the company’s intense commitment to its customers. “In every industry that we work in, we work closely with our customers,” Mr. Merchlinsky explained. “We want to develop products that support their needs, and this requires a strong technology base. All of our customers are the leaders in their fields.”
While BP has not made any significant investments in expanding capacity production capabilities, the company has been investing in its most important asset—its employees. With an eye toward the future, BP has improved its training programs and upgraded the skills of its operators. Executives said that this strategy will help them the most once the economy recovers. “This is what we need to do in this business environment,” Mr. Merchlinsky said. “Frankly, I don’t see a lot of growth in our core businesses until the economy improves.”
For now the timeline for a turnaround is uncertain and the past several months have been characterized by a series of ups and downs, with some months registering pluses and some months charting negatives. Because no one has a crystal ball, BP executives will focus on new applications and possibly new geographies while it waits for two things—the economy to recover and a decision from its parent company to sell.
Sales: $92 million
Description: Key Personnel
Brad Mortimer, president; Edmund Merchlinsky, general manager- industrial fabrics; Rush Clark, vice president & general manager-supply chain; Mike Jeziorski, business manager, geotextiles; John Dowdell, general manager, floor coverings; Ralph Clements, vice president and general manager, manufacturing, research and engineering
Plants
Hazlehurst, GA; Nashville, GA; Seneca, SC
ISO Status
All nonwoven fabric plants are ISO 9002 certified; R&D is ISO 9001 certified
Processes
Needlepunched, RFX fabric process
Brand Names
AdBac, Aptra, Duon, Petromat, RFX
Major Markets
Geotextiles, furniture fabrics, packaging, automotive, carpet backing, industrial applications
With its plans to be sold put on hold, roll goods producer BP Fabrics and Fibers Business Unit, Austell, GA, has been focusing on streamlining its operations and meeting its customers’ requirements to maintain its leadership position in the nonwovens industry. In November 2001, BP temporarily halted efforts to sell its Fabrics & Fibers business unit, a plan announced in January 2001, due to economic conditions. While a number of parties were reportedly interested in purchasing the unit, which produces woven and nonwoven materials, financing problems led the company to believe it wouldn’t get a fair valuation for the unit. The company will reportedly evaluate the sale of this unit in the future.
“There were a number of companies interested in this business,” explained Edmund Merchlinsky, general manager of industrial fabrics. “When BP elects to move forward with our sale, I expect there will continue to be a number of interested parties.”
The proposal to sell was a part of BP’s strategy to focus on its core petrochemical business. At the time the fabrics and fibers unit was put on the selling block so too was the company’s Plastics Fabrication group. In April, this led to the sale of four of BP’s German plants to RKW, Worms, Germany. Included in the sale was BP’s European nonwovens business, named Amoco Deutschland, which operated facilities in Gronau and Wasserberg, Germany. This sale also included BP’s facilities in Nordharn and Michelstadt, which specialize in producing the films for hygiene and medical applications and agricultural films and round bale nettings, respectively. Also in April, BP sold its performance films business to Parkside Flexibles, Staffordshire, U.K., a leading supplier of flexible packaging to consumer brands. Included in this sale were BP’s Darton, U.K. site which produces 18,000 tons of polyethylene films per year, and its Zlotow, Poland facility, where a wide range of flexible packaging materials are manufactured.
Turning back to its nonwovens production, BP Fabrics & Fibers is preparing itself for a rebound in the nonwovens industry as it waits for its parent company to put it back on the market. In terms of sales, about 15-20% of the unit’s business is related to nonwovens while the remaining centers around woven applications. The division produces approximately 300 million square yards of needlepunched nonwovens for the North American market and was able to remain successful despite the difficult economic climate. Still, practically every one of BP’s major business units—which include bedding and furniture, geotextiles, automotives and carpet backing—felt the impact of the economy.
BP’s activities within the furniture segment directly mirrored economic conditions. Because furniture is a segment often hit first by recession and consumer confidence problems, many furniture companies were forced to consolidate and some retailers ceased operations, making it a challenging year for the segment.
Meanwhile, the geotextiles segment has been characterized by flat or negative growth in recent years after having seen strong growth in the years leading up to 1999. Now that the boom times have ended for geotextiles, the market is characterized by a profusion of competitors as well as severe overcapacity issues. Despite these factors, company executives feel that BP is well poised for future growth in this market because of its leadership position and strong market channels. Once growth resumes in geotextiles or some of the excess capacity leaves the market, BP executives fully expect to benefit from this strong position.
BP’s automotives business primarily consists of interior fabrics and this segment was affected by reduced automotive builds as many domestic automotive companies curtailed production to reduce their inventory levels in 2001. So far, 2002 has been more optimistic as automotive builds have begun to rebound.
The carpet backing arm of the business has received a boost from the introduction of Matrix, a needlepunched composite floor covering for carpet backing applications requiring high dimensional stability. For instance, Matrix is ideal for niche areas such as carpeting with strong surface graphics. “This is designed for applications that require increased dimensional stability,” Mr. Merchlinsky explained, “for commercial areas that are more demanding and need toughness.”
While most of its key markets were adversely affected by the poor economy, BP executives said it is a true testament to its strategy that the company was able to remain successful in 2001. Much of this success is related to the company’s intense commitment to its customers. “In every industry that we work in, we work closely with our customers,” Mr. Merchlinsky explained. “We want to develop products that support their needs, and this requires a strong technology base. All of our customers are the leaders in their fields.”
While BP has not made any significant investments in expanding capacity production capabilities, the company has been investing in its most important asset—its employees. With an eye toward the future, BP has improved its training programs and upgraded the skills of its operators. Executives said that this strategy will help them the most once the economy recovers. “This is what we need to do in this business environment,” Mr. Merchlinsky said. “Frankly, I don’t see a lot of growth in our core businesses until the economy improves.”
For now the timeline for a turnaround is uncertain and the past several months have been characterized by a series of ups and downs, with some months registering pluses and some months charting negatives. Because no one has a crystal ball, BP executives will focus on new applications and possibly new geographies while it waits for two things—the economy to recover and a decision from its parent company to sell.