01.01.03
Location: Jyderup, Denmark
Sales: $65 million
Description: Jacob Holm Industries (France) SAS
Soultz, France
Tel: 33-389-74-6500
Jacob Holm Industries (Germany) GmbH
Mildenau, Germany
Tel: 49-3733-55070
Jacob Holm Management GmbH
Allschwil, Switzerland
Tel: 41-61-485-5300
Key Personnel
Poul Mikkelsen, CEO; Peter Stoffel, COO: Michael Steen Lunde, Vice President of business development; Hyo-young Kim, Marketing Director; Jos van Hattum; Bruno Guymard
Plants
Soultz, France; Mildenau, Germany
Processes
Hydroentangling, needlepunch
Brand Names
Norafin, Lidro, Rough n’ Soft, Bi-Activ, Duo-Touch, Duo-Clean, Scrubbi, Duplex, Triplex
Major Markets
Cosmetics/hygiene, household, industrial, medical
Increased product diversification as well as a focus on quality control contributed to a jump in sales last year for Jacob Holm Industries. The company’s nonwovens sales reached $65 million last year, compared to $60 million in 2001. While baby wipes continue to comprise the bulk of Jacob Holm’s business, other segments of the wipes market are considered strong growth areas, and most of its new products target these areas.
For one, BiActiv, a wipe comprising a soft side and a rough side, is ideal for cleaning and cosmetic applications, and Rough n’ Soft, a two-layer nonwoven material made entirely from spunlaced substrates, targets household and cosmetic applications. Additionally, Triplex, features a three-layer sandwich construction with a piece of film positioned between two spunlaced layers that can be used in a variety of wipes applications.
These diversification efforts are a direct result of maturity in the baby wipes segment. As growth prospects in baby wipes wane, Jacob Holm has been eager to capitalize on the mass proliferation of wipes into other consumer and industrial areas. Jacob Holm is experiencing 10% growth or better in the household care, cosmetics and institutional and industrial wipes segments, according to Michael Steen Lunde, vice president of business development.
One area of interest is raw material development. Rather than focus on new forming methods and embossing patterns, which can confuse consumers who are used to certain substrate types, adding value to fibers, such as antimicrobial benefits, is one way to boost the effectiveness of wipe products.
“There is a demand on the nonwovens producer to come up with new things, and to do this we really need to invest in our businesses,” Mr. Lunde remarked. “You used to see different nonwoven substrates, but now you are really seeing the same substrate in a variety of different products. What has changed is the lotion.”
While most wipe substrates used in North America and Europe are uniform, Mr. Lunde still sees room for technology in niche areas. He hopes that these new substrates can attract consumers and open up opportunities for wipes. “The challenge is to come up with a specific material to convince customers to incorporate a new substrate into their products,” he said. “This can be difficult because the customer reaps a lot of advantages by using the same material for all of their products including cost, liquidity and fluidity.”
The trend toward uniform products has also led to consolidation within customer-supplier relationships in the nonwovens industry. Global companies, keen on offering the same product throughout the world, are achieving this by purchasing their raw materials from fewer companies.
“A lot of the bigger consumer product companies are cutting down on the number of suppliers they use,” Mr. Lunde remarked. “Companies that used to rely on 14-15 vendors now use three or four. This has impacted a lot of companies in the way that they cater to these companies. It has really increased dependency—for both the supplier and the customer.”
This has also led Jacob Holm to sharpen its focus on quality control. The company has honed its operations to consistently deliver the same product to its customers, a process that has really taken an attitude readjustment, according to Mr. Lunde. “As an industry, we have not explained that small flaws are intrinsic to nonwovens,” he said. “Instead, we have risen to the demand for a uniform product by improving our products.”
In addition to three spunlaced lines, two lines in Soultz, France and one line in Mildenau, Germany, Jacob Holm also operates a needlepunch line in its Mildenau, Germany facility. This operation was acquired through Jacob Holm’ purchase of Norafin in 2000 and does not only target the markets that typically use needlepunched nonwovens. In addition, the output is used to reinforce Jacob Holm’s spunlaced materials and further diversify its offerings to the wipes market.
Outside of wipes, also on Jacob Holm’s radar screen is the medical market. Penetration into this market has already been achieved to some degree through new product introductions, including Duplex, a spunlaced nonwoven laminated to a polyethylene film that targets protective applications in the medical, hygiene and cosmetic segments.
New products and their entry into new markets are expected to help Jacob Holm continue its pattern of double-digit growth. “We have worked hard to make sure we don’t rely too much on just one thing,” Mr. Lunde concluded. “We know this will pay off.”"
Sales: $65 million
Description: Jacob Holm Industries (France) SAS
Soultz, France
Tel: 33-389-74-6500
Jacob Holm Industries (Germany) GmbH
Mildenau, Germany
Tel: 49-3733-55070
Jacob Holm Management GmbH
Allschwil, Switzerland
Tel: 41-61-485-5300
Key Personnel
Poul Mikkelsen, CEO; Peter Stoffel, COO: Michael Steen Lunde, Vice President of business development; Hyo-young Kim, Marketing Director; Jos van Hattum; Bruno Guymard
Plants
Soultz, France; Mildenau, Germany
Processes
Hydroentangling, needlepunch
Brand Names
Norafin, Lidro, Rough n’ Soft, Bi-Activ, Duo-Touch, Duo-Clean, Scrubbi, Duplex, Triplex
Major Markets
Cosmetics/hygiene, household, industrial, medical
Increased product diversification as well as a focus on quality control contributed to a jump in sales last year for Jacob Holm Industries. The company’s nonwovens sales reached $65 million last year, compared to $60 million in 2001. While baby wipes continue to comprise the bulk of Jacob Holm’s business, other segments of the wipes market are considered strong growth areas, and most of its new products target these areas.
For one, BiActiv, a wipe comprising a soft side and a rough side, is ideal for cleaning and cosmetic applications, and Rough n’ Soft, a two-layer nonwoven material made entirely from spunlaced substrates, targets household and cosmetic applications. Additionally, Triplex, features a three-layer sandwich construction with a piece of film positioned between two spunlaced layers that can be used in a variety of wipes applications.
These diversification efforts are a direct result of maturity in the baby wipes segment. As growth prospects in baby wipes wane, Jacob Holm has been eager to capitalize on the mass proliferation of wipes into other consumer and industrial areas. Jacob Holm is experiencing 10% growth or better in the household care, cosmetics and institutional and industrial wipes segments, according to Michael Steen Lunde, vice president of business development.
One area of interest is raw material development. Rather than focus on new forming methods and embossing patterns, which can confuse consumers who are used to certain substrate types, adding value to fibers, such as antimicrobial benefits, is one way to boost the effectiveness of wipe products.
“There is a demand on the nonwovens producer to come up with new things, and to do this we really need to invest in our businesses,” Mr. Lunde remarked. “You used to see different nonwoven substrates, but now you are really seeing the same substrate in a variety of different products. What has changed is the lotion.”
While most wipe substrates used in North America and Europe are uniform, Mr. Lunde still sees room for technology in niche areas. He hopes that these new substrates can attract consumers and open up opportunities for wipes. “The challenge is to come up with a specific material to convince customers to incorporate a new substrate into their products,” he said. “This can be difficult because the customer reaps a lot of advantages by using the same material for all of their products including cost, liquidity and fluidity.”
The trend toward uniform products has also led to consolidation within customer-supplier relationships in the nonwovens industry. Global companies, keen on offering the same product throughout the world, are achieving this by purchasing their raw materials from fewer companies.
“A lot of the bigger consumer product companies are cutting down on the number of suppliers they use,” Mr. Lunde remarked. “Companies that used to rely on 14-15 vendors now use three or four. This has impacted a lot of companies in the way that they cater to these companies. It has really increased dependency—for both the supplier and the customer.”
This has also led Jacob Holm to sharpen its focus on quality control. The company has honed its operations to consistently deliver the same product to its customers, a process that has really taken an attitude readjustment, according to Mr. Lunde. “As an industry, we have not explained that small flaws are intrinsic to nonwovens,” he said. “Instead, we have risen to the demand for a uniform product by improving our products.”
In addition to three spunlaced lines, two lines in Soultz, France and one line in Mildenau, Germany, Jacob Holm also operates a needlepunch line in its Mildenau, Germany facility. This operation was acquired through Jacob Holm’ purchase of Norafin in 2000 and does not only target the markets that typically use needlepunched nonwovens. In addition, the output is used to reinforce Jacob Holm’s spunlaced materials and further diversify its offerings to the wipes market.
Outside of wipes, also on Jacob Holm’s radar screen is the medical market. Penetration into this market has already been achieved to some degree through new product introductions, including Duplex, a spunlaced nonwoven laminated to a polyethylene film that targets protective applications in the medical, hygiene and cosmetic segments.
New products and their entry into new markets are expected to help Jacob Holm continue its pattern of double-digit growth. “We have worked hard to make sure we don’t rely too much on just one thing,” Mr. Lunde concluded. “We know this will pay off.”"