01.01.03
Location: Dierdorf, Germany
Sales: $92 million
Description: Key Personnel
Michael Haddon, managing director
Plant
Dierdorf Germany
ISO Status
ISO 9001
Processes
Drylaid, chemical bonded, thermal bonded, needlepunched, air through bonded
Brand Names
Paratherm, Paramoll, Paraskin, Paraprint, Parabond, Parafil, Paratherm loft, Paraform
Despite difficult economic conditions in its domestic market, Germany, as well as all of Europe, Lohmann Vliesstoffe GmbH and sister company TWE Group were able to report solid performances in 2002. One year after the companies started their affiliation—through TWE’s purchase of Lohmann—they are optimistic for the future. Success has been achieved by not only being active in the market but also by being very specific about the type of market segments it wishes to be involved in and investing in all of its technologies to support this effort, according to Michael Haddon, managing director of Lohmann.
With major markets including automotives, interior decoration, filtration, medical, hygiene, roofing, footwear and conveyor belts, Lohmann is gaining share in all of its key markets. While hygiene continues to be Lohmann’s largest market, representing 40% of its annual sales, Mr. Haddon said conditions in this segment are not necessarily as difficult as some perceive.
“Despite its often maligned reputation, hygiene is still a business that can be mutually beneficial for all parties involved,” Mr. Haddon explained. “We are comfortable with having a mixed bag of technical applications to offset this. That has been further enhanced since joining the TWE group.”
Lohmann can produce 13,000 tons of nonwoven materials annually. Of this capacity needlepunch and resin bonding comprise 30% each while air through bonding represents the remaining 40%. Meanwhile, 100% of the 10,000 tons of nonwovens TWE produces annually are needlepunched. Its major market is currently household products but TWE is increasing its focus on technical applications including automotives. For now, the two companies operate as two legally separate entities but are able to benefit from the many synergies that exist between them. Currently, about 10% of the companies’ businesses cross over each other, and executives expect this percentage to rise as time goes on.
“TWE has and still is growing and the link up of Lohmann and TWE has brought few problems in the market as the two companies serve very different customer bases,” Mr. Haddon explained. “This is one of the major reasons why the two companies operate as separate entities although we obviously try to make the most of any synergy that exists between them.”
Also included under the same corporate umbrella is smaller roll goods producer Kahnes, a German producer of 5000 tons of needlepunch material per year. This division contributes approximately $9 million annually in sales to the organization. As the group continues to search for future growth, surely future acquisitions will be a focus.
For instance the group recently acquired Hildener Filz, a German based producer of needlepunched and spunlaced nonwovens. These acquisitions as well as past capital investment initiatives prove that Lohmann and its affiliated companies are serious about future growth, by whichever means necessary. “This tradition of organic growth will be supplemented by capital investments and expansion,” Mr. Haddon explained.
Sales: $92 million
Description: Key Personnel
Michael Haddon, managing director
Plant
Dierdorf Germany
ISO Status
ISO 9001
Processes
Drylaid, chemical bonded, thermal bonded, needlepunched, air through bonded
Brand Names
Paratherm, Paramoll, Paraskin, Paraprint, Parabond, Parafil, Paratherm loft, Paraform
Despite difficult economic conditions in its domestic market, Germany, as well as all of Europe, Lohmann Vliesstoffe GmbH and sister company TWE Group were able to report solid performances in 2002. One year after the companies started their affiliation—through TWE’s purchase of Lohmann—they are optimistic for the future. Success has been achieved by not only being active in the market but also by being very specific about the type of market segments it wishes to be involved in and investing in all of its technologies to support this effort, according to Michael Haddon, managing director of Lohmann.
With major markets including automotives, interior decoration, filtration, medical, hygiene, roofing, footwear and conveyor belts, Lohmann is gaining share in all of its key markets. While hygiene continues to be Lohmann’s largest market, representing 40% of its annual sales, Mr. Haddon said conditions in this segment are not necessarily as difficult as some perceive.
“Despite its often maligned reputation, hygiene is still a business that can be mutually beneficial for all parties involved,” Mr. Haddon explained. “We are comfortable with having a mixed bag of technical applications to offset this. That has been further enhanced since joining the TWE group.”
Lohmann can produce 13,000 tons of nonwoven materials annually. Of this capacity needlepunch and resin bonding comprise 30% each while air through bonding represents the remaining 40%. Meanwhile, 100% of the 10,000 tons of nonwovens TWE produces annually are needlepunched. Its major market is currently household products but TWE is increasing its focus on technical applications including automotives. For now, the two companies operate as two legally separate entities but are able to benefit from the many synergies that exist between them. Currently, about 10% of the companies’ businesses cross over each other, and executives expect this percentage to rise as time goes on.
“TWE has and still is growing and the link up of Lohmann and TWE has brought few problems in the market as the two companies serve very different customer bases,” Mr. Haddon explained. “This is one of the major reasons why the two companies operate as separate entities although we obviously try to make the most of any synergy that exists between them.”
Also included under the same corporate umbrella is smaller roll goods producer Kahnes, a German producer of 5000 tons of needlepunch material per year. This division contributes approximately $9 million annually in sales to the organization. As the group continues to search for future growth, surely future acquisitions will be a focus.
For instance the group recently acquired Hildener Filz, a German based producer of needlepunched and spunlaced nonwovens. These acquisitions as well as past capital investment initiatives prove that Lohmann and its affiliated companies are serious about future growth, by whichever means necessary. “This tradition of organic growth will be supplemented by capital investments and expansion,” Mr. Haddon explained.