01.01.03
Location: Austell, GA
Sales: $80 million
Description: Key Personnel
Brad Mortimer, president business unit leader; 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
BP Fabrics and Fibers Business Unit reported slightly lower sales of nonwoven fabrics in 2002, caused by a reduction in North American sales as well as the divestment of its European business. Nonwovens executives are not put off by these decreases, recognizing the challenges that exist in BP’s core markets, geotextiles, furniture, bedding and automotive seatings.
“We participate in some pretty tough markets,” explained Edmund Merchlinsky, general manager of industrial fabrics. “Everybody has been expecting a turnaround, but so far, it hasn’t happened.”
The company’s largest end use market for nonwovens, geotextiles, has been characterized by declining demands. BP is trying to offset these issues by exploring new areas of the segment that are ripe for growth. For instance, BP has developed software to help designers learn how BP products can benefit their projects. This software can be accessed directly through BP’s website, www.geotextile.com. Additionally, the company has been sponsoring seminars to educate decision makers on the merits of using geotextiles. “The market penetration is less than only 50%,” said Mr. Merchlinsky. “Broad educational efforts need to be made to get potential customers to understand the products.”
Meanwhile, BP’s activity in the home furnishings market, where it provides interior construction fabrics, has been negatively impacted by economic conditions. Recovery in this market historically has preceded an overall economic upturn and executives would view increased furniture business as a harbinger to total recovery. As it waits for this recovery to occur, BP has been working directly with customers on new products as well as developing fabrics to meet pending antiflammability regulations.
Also impacting the furniture business is the industry’s large-scale exodus to China. Like other textile-based businesses, furniture upholstery has moved east in recent years, in search of lower-paid workforces and commerce-friendly governments.
The only area of BP’s nonwovens market recording growth is automotives where it produces interior fabrics for seating applications. Business in this area has been boosted both by increasing car production rates in North America as well as increased use of needlepunched nonwovens in this area. While there are may other areas in automotives where needlepunched materials could penetrate are used, BP began with this subsegment because it mirrors its business in home furnishings.
Also influencing BP’s business is its potential to be sold. In November 2001, BP temporarily halted efforts to sell its Fabrics & Fibers business unit, which was announced in January 2001, due to economic conditions. While a number of parties were reportedly interested in purchasing the unit, which produces both woven and nonwoven materials, the economic environment financing problems led the company to believe it wouldn’t get a fair valuation for the unit. “We expect that we will be put back on the market when the time comes,” Mr. Merchlinsky predicts. “I think the company is just reviewing the conditions properly before making any big moves.”
Despite its interest in selling the unit, BP continues to consider Fibers & Fabrics an important part of its overall business, and has is selectively investing in improving its machinery and equipment and other aspects of the operations. “BP understands that no one is going to want to buy a rundown business,” Mr. Merchlinsky explained. “If the unit were not kept up, it would only end up costing money rather than saving money.”
While BP has not added any new nonwovens capacity to its operations—it currently produces about 300 million square yards of needlepunched nonwovens for the North American market—it is constantly working on projects to improve its product quality and uniformity. Mr. Merchlinsky said operations are constantly being reviewed to gauge which components are in need of upgrading.
Economic conditions, nevertheless, have led to some restructuring efforts by BP. In February, the company announced that its would reportedly lay off about 20% of its workforce in Seneca, SC. While executives did not specify how many workers were affected by the move, industry watchers estimate that as many 50 jobs were lost in the plan. The Seneca facility produces both woven and nonwoven materials for carpet backing geotextile and fibers for furniture and bedding applications.
Mr. Merchlinsky said the reasons behind the downsizing were two-fold. For one, is to remain cost competitive. Production improvements made staffing requirements less than before; for another the company is committed to remaining cost competitive in response to tightened margins, and created by the layoffs, will help offset pricing pressures in many of the company’s core markets.
Other measures being taken by the company to offset problems in its core markets include working directly with its customers, educating potential consumers and research and development efforts. “It’s all about creating fabrics that allow our customers, both current and future, to satisfy their needs,” Mr. Merchlinsky explained. “We believe this is something that will open up a lot of opportunity down the road.”
Sales: $80 million
Description: Key Personnel
Brad Mortimer, president business unit leader; 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
BP Fabrics and Fibers Business Unit reported slightly lower sales of nonwoven fabrics in 2002, caused by a reduction in North American sales as well as the divestment of its European business. Nonwovens executives are not put off by these decreases, recognizing the challenges that exist in BP’s core markets, geotextiles, furniture, bedding and automotive seatings.
“We participate in some pretty tough markets,” explained Edmund Merchlinsky, general manager of industrial fabrics. “Everybody has been expecting a turnaround, but so far, it hasn’t happened.”
The company’s largest end use market for nonwovens, geotextiles, has been characterized by declining demands. BP is trying to offset these issues by exploring new areas of the segment that are ripe for growth. For instance, BP has developed software to help designers learn how BP products can benefit their projects. This software can be accessed directly through BP’s website, www.geotextile.com. Additionally, the company has been sponsoring seminars to educate decision makers on the merits of using geotextiles. “The market penetration is less than only 50%,” said Mr. Merchlinsky. “Broad educational efforts need to be made to get potential customers to understand the products.”
Meanwhile, BP’s activity in the home furnishings market, where it provides interior construction fabrics, has been negatively impacted by economic conditions. Recovery in this market historically has preceded an overall economic upturn and executives would view increased furniture business as a harbinger to total recovery. As it waits for this recovery to occur, BP has been working directly with customers on new products as well as developing fabrics to meet pending antiflammability regulations.
Also impacting the furniture business is the industry’s large-scale exodus to China. Like other textile-based businesses, furniture upholstery has moved east in recent years, in search of lower-paid workforces and commerce-friendly governments.
The only area of BP’s nonwovens market recording growth is automotives where it produces interior fabrics for seating applications. Business in this area has been boosted both by increasing car production rates in North America as well as increased use of needlepunched nonwovens in this area. While there are may other areas in automotives where needlepunched materials could penetrate are used, BP began with this subsegment because it mirrors its business in home furnishings.
Also influencing BP’s business is its potential to be sold. In November 2001, BP temporarily halted efforts to sell its Fabrics & Fibers business unit, which was announced in January 2001, due to economic conditions. While a number of parties were reportedly interested in purchasing the unit, which produces both woven and nonwoven materials, the economic environment financing problems led the company to believe it wouldn’t get a fair valuation for the unit. “We expect that we will be put back on the market when the time comes,” Mr. Merchlinsky predicts. “I think the company is just reviewing the conditions properly before making any big moves.”
Despite its interest in selling the unit, BP continues to consider Fibers & Fabrics an important part of its overall business, and has is selectively investing in improving its machinery and equipment and other aspects of the operations. “BP understands that no one is going to want to buy a rundown business,” Mr. Merchlinsky explained. “If the unit were not kept up, it would only end up costing money rather than saving money.”
While BP has not added any new nonwovens capacity to its operations—it currently produces about 300 million square yards of needlepunched nonwovens for the North American market—it is constantly working on projects to improve its product quality and uniformity. Mr. Merchlinsky said operations are constantly being reviewed to gauge which components are in need of upgrading.
Economic conditions, nevertheless, have led to some restructuring efforts by BP. In February, the company announced that its would reportedly lay off about 20% of its workforce in Seneca, SC. While executives did not specify how many workers were affected by the move, industry watchers estimate that as many 50 jobs were lost in the plan. The Seneca facility produces both woven and nonwoven materials for carpet backing geotextile and fibers for furniture and bedding applications.
Mr. Merchlinsky said the reasons behind the downsizing were two-fold. For one, is to remain cost competitive. Production improvements made staffing requirements less than before; for another the company is committed to remaining cost competitive in response to tightened margins, and created by the layoffs, will help offset pricing pressures in many of the company’s core markets.
Other measures being taken by the company to offset problems in its core markets include working directly with its customers, educating potential consumers and research and development efforts. “It’s all about creating fabrics that allow our customers, both current and future, to satisfy their needs,” Mr. Merchlinsky explained. “We believe this is something that will open up a lot of opportunity down the road.”