01.01.03
Location: Denver, CO
Sales: $525 million
Description: Key Personnel
Chuck Griffith, senior vice president, engineered products Group; Marvin Mitchell, global leader for high performance nonwovens; Zain Mahmood, global leader for roofing materials; Luc Mechelaere, vice president of Johns Manville Europe; Dick LeBoeuf, senior director global manufacturing
Plants
Waterville, OH; Defiance, OH; Richland, MS, Spartanburg, SC, Etowah, TN; Bobingen, Berlin, Wertheim, Karlstein and Steinach, Germany; Shanghai, China; Trnava, Slovakia
ISO Status
Spartanburg, SC and Defiance, OH ISO 9002 certified; Bobingen and Berlin, Germany ISO 9001 certified; Waterville, OH ISO 9002 certified; Etowah, TN ISO 9002 certified
Processes
Airlaid (glass and synthetic), wetlaid, calendered, melt blown, spunbonded, needlepunched, thermal bonded
Brand Names
Delta-Aire, DynaWick, DynaWeb, DynaTech, Micro-Aire
Major Markets
Roofing substrates, air and liquid filtration, sorbents, battery separators, geotextiles, flooring and moldables (heterofil)
Undergoing reorganization this year was roofing and construction specialist Johns Manville, Denver, CO, which is owned by Berkshire Hathaway. JM is comprised of three operating groups—Engineered Products, Insulation and Roofing systems. The Engineered Products group, which houses JM’s nonwovens business, has recently been divided into three global segments—reinforcement fibers, roofing materials and high-performance nonwovens, which is a combination of the former specialty mats and filtration segments. These divisions are now managed by global teams, allowing the company to react globally to market trends.
The two subdivisions relating to JM’s nonwovens business, high performance nonwovens and roofing, are led by business leaders Marvin Mitchell and Zain Mahmood, respectively.
Mr. Mitchell said the reorganization reflects the nature of JM’s global operations. “We were seeing that we had the same customers in both regions and to serve them locally, we had to operate globally,” he said.
Additionally, this business structure has allowed JM to look at capacities and products from a global standpoint, something the company hadn’t done before. Therefore capacity can be adjusted to meet the needs of JM’s global business rather than only adapting to regional shifts. “Looking at capacity and products from a global standpoint is completely new to us,” Mr. Mahmood explained. “We have not leveraged our business, to this degree, from a global standpoint before.”
Still, operating from a global perspective can be difficult, as codes in many of the markets in which JM participates tend to vary. Currently, about 25% of the products manufactured by JM are offered in the same form throughout the world. While the world is getting smaller in terms of preferences, JM executives do not expect harmonization to occur in the next five years due to the high number of countries in which it does business. Even within Europe, codes vary across regions. “Maybe in the next five to seven years, we’ll see some larger European codes,” Mr. Mahmood explained. “But, even that is going to be difficult because there are so many codes.”
In terms of global penetration, the performance nonwovens business, which includes air and liquid filtration, sorbents, battery separators and geotextiles, is split between North America and Europe. On the roofing substrate side of the business, North America comprises nearly 65% of sales while Europe represents almost 35%. JM’s Asian sales represent less than 5% of the company’s total business.
Globally, Eastern Europe continues to be of strong importance to JM, a fact that is clearly evident in recent investment initiatives made in the region. In January 2001, JM purchased Skloplast, a fiberglass manufacturing company located in Trnava, Slovakia. Soon after purchasing the site, JM added a second fiberglass furnace to the operation, and, in April 2003, announced its intent to invest $85 million in a greenfield glass fiber operation there. This new capacity will mainly support JM’s reinforcements business but some of the capacity will be earmarked for roofing applications.
Executives say that the reasons for interest in Eastern Europe are three-fold. For one, the region is in a recovery phase, meaning there are a lot of growth opportunities in JM’s core markets. Additionally, a strong network of prominent colleges and universities has created a highly skilled labor base. Finally, these laborers work for lower wages than workers in Western Europe.
While no nonwovens are currently being produced in Eastern Europe by JM, executives said that it won’t be long before some type of glass mat or spunbond operation is established there. This capacity would help fuel the building boom currently going on in Eastern and Central Europe while providing added capacity to Western European and North American markets, according to executives.
Turning toward Western Europe, JM has facilities in Berlin, Wertheim, Karlstein and Steinach, Germany. The most recent investment in this region was the construction of a new spunbond line in Berlin at the end of 2001, doubling JM’s capacity in the region. Capable of producing high-end materials targeting the service filtration, high-end roofing and specialty end use markets, the new line is already operating at full capacity. To increase its production, JM is currently debottlenecking the line, a move that should boost capacity by about 25% when complete during the first quarter of next year.
Meanwhile the company’s Wertheim, Germany site recently became the home of two glass air media lines, which were formerly housed in Parkersburg, WV. Executives said that this move made logistical sense because the bulk of the affected lines’ output was being shipped to European customers.
In North America, JM produces nonwovens in Ohio, Mississippi, South Carolina and Tennessee. While no new capacity has been added at these sites recently—nor is any planned in the near-term—executives are considering adding the ability to coat polyester glass mats to one of its North American operations. This portion of JM’s business has achieved considerable success in Europe in gypsum and flooring and executives feel it has a place in North America.
The high-performance nonwovens side of the business has recorded growth in the double-digit range in 2002 and into 2003. This was caused by success in the gypsum wallboard market where JM provides glass mats for exterior sheeting as well as in duct liners. In Europe, JM has recorded significant growth in battery separators and in flooring markets, which have benefited from the emergence of vinyl flooring styles that are backed by glass mat reinforcements. This flooring style has become particularly popular in Eastern Europe, according to executives, and JM has been working on various new product designs to meet customer preferences.
Meanwhile, roofing substrates has been boosted by the refinancing craze that has taken hold of North America in recent months. Currently this segment is seeing 8-9% annual growth, mainly in residential markets. European roofing is flat despite significant growth in Eastern Europe.
Also boosting JM’s roofing business is the recently introduced Duragrid glass scrim reinforced polyester product. This material allows roofing companies to run their manufacturing processes at faster speeds, giving them room for additional capacity.
In geotextiles, JM’s polyester-based products continue to find their place in Europe, unlike the U.S., where polypropylene-based products are preferred over JM’s polyester nonwovens. In Asia, demand for geotextiles has been boosted by construction efforts, particularly those surrounding preparation for the Winter Olympics, which will be held in Beijing in 2008.
Looking ahead, JM hopes in the next two years, that GDP growth will return to levels characteristic of the 1990s. “The slowdown in 2000-2003 has allowed us to basically serve our markets with existing capacity,” Mr. Mitchell explained. “Hopefully all of that is coming to an end and we will need new capacity in all areas to meet demands.”
Also high on JM’s list is acquisition, something there will be a lot of in construction as the industry grapples with asbestos issues and growth opportunities. “We are well positioned to move ahead,” Mr. Mahmood explained. “All we need now is to find the right partners and look for strategic fits.”
Sales: $525 million
Description: Key Personnel
Chuck Griffith, senior vice president, engineered products Group; Marvin Mitchell, global leader for high performance nonwovens; Zain Mahmood, global leader for roofing materials; Luc Mechelaere, vice president of Johns Manville Europe; Dick LeBoeuf, senior director global manufacturing
Plants
Waterville, OH; Defiance, OH; Richland, MS, Spartanburg, SC, Etowah, TN; Bobingen, Berlin, Wertheim, Karlstein and Steinach, Germany; Shanghai, China; Trnava, Slovakia
ISO Status
Spartanburg, SC and Defiance, OH ISO 9002 certified; Bobingen and Berlin, Germany ISO 9001 certified; Waterville, OH ISO 9002 certified; Etowah, TN ISO 9002 certified
Processes
Airlaid (glass and synthetic), wetlaid, calendered, melt blown, spunbonded, needlepunched, thermal bonded
Brand Names
Delta-Aire, DynaWick, DynaWeb, DynaTech, Micro-Aire
Major Markets
Roofing substrates, air and liquid filtration, sorbents, battery separators, geotextiles, flooring and moldables (heterofil)
Undergoing reorganization this year was roofing and construction specialist Johns Manville, Denver, CO, which is owned by Berkshire Hathaway. JM is comprised of three operating groups—Engineered Products, Insulation and Roofing systems. The Engineered Products group, which houses JM’s nonwovens business, has recently been divided into three global segments—reinforcement fibers, roofing materials and high-performance nonwovens, which is a combination of the former specialty mats and filtration segments. These divisions are now managed by global teams, allowing the company to react globally to market trends.
The two subdivisions relating to JM’s nonwovens business, high performance nonwovens and roofing, are led by business leaders Marvin Mitchell and Zain Mahmood, respectively.
Mr. Mitchell said the reorganization reflects the nature of JM’s global operations. “We were seeing that we had the same customers in both regions and to serve them locally, we had to operate globally,” he said.
Additionally, this business structure has allowed JM to look at capacities and products from a global standpoint, something the company hadn’t done before. Therefore capacity can be adjusted to meet the needs of JM’s global business rather than only adapting to regional shifts. “Looking at capacity and products from a global standpoint is completely new to us,” Mr. Mahmood explained. “We have not leveraged our business, to this degree, from a global standpoint before.”
Still, operating from a global perspective can be difficult, as codes in many of the markets in which JM participates tend to vary. Currently, about 25% of the products manufactured by JM are offered in the same form throughout the world. While the world is getting smaller in terms of preferences, JM executives do not expect harmonization to occur in the next five years due to the high number of countries in which it does business. Even within Europe, codes vary across regions. “Maybe in the next five to seven years, we’ll see some larger European codes,” Mr. Mahmood explained. “But, even that is going to be difficult because there are so many codes.”
In terms of global penetration, the performance nonwovens business, which includes air and liquid filtration, sorbents, battery separators and geotextiles, is split between North America and Europe. On the roofing substrate side of the business, North America comprises nearly 65% of sales while Europe represents almost 35%. JM’s Asian sales represent less than 5% of the company’s total business.
Globally, Eastern Europe continues to be of strong importance to JM, a fact that is clearly evident in recent investment initiatives made in the region. In January 2001, JM purchased Skloplast, a fiberglass manufacturing company located in Trnava, Slovakia. Soon after purchasing the site, JM added a second fiberglass furnace to the operation, and, in April 2003, announced its intent to invest $85 million in a greenfield glass fiber operation there. This new capacity will mainly support JM’s reinforcements business but some of the capacity will be earmarked for roofing applications.
Executives say that the reasons for interest in Eastern Europe are three-fold. For one, the region is in a recovery phase, meaning there are a lot of growth opportunities in JM’s core markets. Additionally, a strong network of prominent colleges and universities has created a highly skilled labor base. Finally, these laborers work for lower wages than workers in Western Europe.
While no nonwovens are currently being produced in Eastern Europe by JM, executives said that it won’t be long before some type of glass mat or spunbond operation is established there. This capacity would help fuel the building boom currently going on in Eastern and Central Europe while providing added capacity to Western European and North American markets, according to executives.
Turning toward Western Europe, JM has facilities in Berlin, Wertheim, Karlstein and Steinach, Germany. The most recent investment in this region was the construction of a new spunbond line in Berlin at the end of 2001, doubling JM’s capacity in the region. Capable of producing high-end materials targeting the service filtration, high-end roofing and specialty end use markets, the new line is already operating at full capacity. To increase its production, JM is currently debottlenecking the line, a move that should boost capacity by about 25% when complete during the first quarter of next year.
Meanwhile the company’s Wertheim, Germany site recently became the home of two glass air media lines, which were formerly housed in Parkersburg, WV. Executives said that this move made logistical sense because the bulk of the affected lines’ output was being shipped to European customers.
In North America, JM produces nonwovens in Ohio, Mississippi, South Carolina and Tennessee. While no new capacity has been added at these sites recently—nor is any planned in the near-term—executives are considering adding the ability to coat polyester glass mats to one of its North American operations. This portion of JM’s business has achieved considerable success in Europe in gypsum and flooring and executives feel it has a place in North America.
The high-performance nonwovens side of the business has recorded growth in the double-digit range in 2002 and into 2003. This was caused by success in the gypsum wallboard market where JM provides glass mats for exterior sheeting as well as in duct liners. In Europe, JM has recorded significant growth in battery separators and in flooring markets, which have benefited from the emergence of vinyl flooring styles that are backed by glass mat reinforcements. This flooring style has become particularly popular in Eastern Europe, according to executives, and JM has been working on various new product designs to meet customer preferences.
Meanwhile, roofing substrates has been boosted by the refinancing craze that has taken hold of North America in recent months. Currently this segment is seeing 8-9% annual growth, mainly in residential markets. European roofing is flat despite significant growth in Eastern Europe.
Also boosting JM’s roofing business is the recently introduced Duragrid glass scrim reinforced polyester product. This material allows roofing companies to run their manufacturing processes at faster speeds, giving them room for additional capacity.
In geotextiles, JM’s polyester-based products continue to find their place in Europe, unlike the U.S., where polypropylene-based products are preferred over JM’s polyester nonwovens. In Asia, demand for geotextiles has been boosted by construction efforts, particularly those surrounding preparation for the Winter Olympics, which will be held in Beijing in 2008.
Looking ahead, JM hopes in the next two years, that GDP growth will return to levels characteristic of the 1990s. “The slowdown in 2000-2003 has allowed us to basically serve our markets with existing capacity,” Mr. Mitchell explained. “Hopefully all of that is coming to an end and we will need new capacity in all areas to meet demands.”
Also high on JM’s list is acquisition, something there will be a lot of in construction as the industry grapples with asbestos issues and growth opportunities. “We are well positioned to move ahead,” Mr. Mahmood explained. “All we need now is to find the right partners and look for strategic fits.”