01.01.04
Location: Aalborg, Denmark
Sales: $107 MILLION
Description: Key Personnel
Knud Waede Hansen, managing director; Knud Erik Justesen, deputy managing director; Jorgen Bech Masen, general manager, needlepunch division; Mikael Staal Axelsen, general manager, personal care division; Etienne Ficht, business development manager
Plants
Two in Aalborg; one in Malaysia, two in Czech Republic
ISO Status
ISO 9001 certified, 1991; DES ISO 14001 environmental certification, 2001
Processes
Drylaid, needlepunched, spunbond/meltblown, thermal bond
Brand Names
Fibertex, Matchback, Comfortback, Flexback, Two-in-One, formtex, Superflor, Alupor
Major Markets
Industrial textiles—primary and secondary carpet backings, automotive, furniture and bedding; technical textiles—building and construction, horticulture; hygiene; protective clothing; packaging.
An ambitious global expansion strategy is clearly evident through the recent activities of Aalborg, Denmark-based Fibertex A/S. Just one year after building a spunmelt facility in Nilai, Malaysia, the company has already announced plans to add a second line to this operation. And, the acquisition of a Czech roll goods producer will boost Fibertex’s technical business, particularly in Central Europe.
“Our top priority is to become more global for a number of reasons,” said Knud Waede Hansen, managing director. “It boosts our credibility with large customers and brings us closer to markets we want to enter.”
Mr. Hansen is cognizant of the importance of prudence when expanding.
“You need to have a controlled expansion,” he explained. “You don’t want to fall into a trap of expanding too quickly.”
Currently, about 80% of Fibertex’s $130 million annual sales are generated within Europe, with the remaining split between North America and the Far East. This breakdown is expected to change as the company’s Malaysian operation—which represented only $3 million of total sales last year—contributes more. The successful startup of this line has already been proven through Fibertex’s decision, announced in April, to add a second line on a sharp increase in demand for nonwovens from the personal care segment. Representing a E36 million investment, the second line will reportedly have a 25% higher output than the existing line and be the first-of-its-kind operation in Southeast Asia when it comes onstream in mid-2005.
Adding a second line will benefit the Asian business in a number of ways “For an optimal operation, it’s better to have two lines for critical mass,” Mr. Hansen said. “This makes your operation more efficient. If you have a minor breakdown, it doesn’t throw everything off.”
The addition of the Malaysian operations has made personal care the larger of Fibertex’s two divisions, representing $70 million in annual sales. This segment, which Fibertex first entered in 1997, has been successful thanks to a strong commitment to producing soft, lightweight products for the market.
Meanwhile, Fibertex’s technical division is poised to benefit from the recent acquisition of Vigona, a Svitavy, Czech Republic-based manufacturer of needlepunched and thermal bonded nonwovens. This acquisition not only increases Fibertex’s presence in Eastern Europe, where manufacturing costs are considerably lower, it also provides access to markets such as specialty automotives, a booming business in this region.
With current sales of about DKK60 million, Vigona currently operates three facilities in the Czech Republic and employs 220 people. After spending DKK35 million for the company, Fibertex expects to invest as much as DKK200 million in improving the two Vigona sites located in Svitavy. While plans for the third site, located in Opatov, are unclear, executives said it could likely be consolidated into the two larger sites and closed.
This investment in the technical side of the business parallels recent investments in the personal care segment. While much attention has been paid to spunmelt during the past six years, executives are keen to express their continued commitment to technical applications. In August 2003, the company installed a new needlepunch line in Aalborg, which not only added capacity but also improved the quality of product offerings. This investment was followed by the construction of a large storage facility to improve logistics. Beyond automotives, key markets for the technical division include furniture and bedding and construction.
Having interests in both personal care and technical markets allows Fibertex enjoy the benefits of two worlds. In hygiene, the focus tends to be on a few big customers who are highly price conscious; in technical, customers tend to be more diversified with many different customers and applications as well as the ability to offer value-added properties. “It’s important to focus on developing new products and new niche markets,” Mr. Hansen said. “To do this, though, you need a certain capacity, so you can be taken seriously on the market.”
Sales: $107 MILLION
Description: Key Personnel
Knud Waede Hansen, managing director; Knud Erik Justesen, deputy managing director; Jorgen Bech Masen, general manager, needlepunch division; Mikael Staal Axelsen, general manager, personal care division; Etienne Ficht, business development manager
Plants
Two in Aalborg; one in Malaysia, two in Czech Republic
ISO Status
ISO 9001 certified, 1991; DES ISO 14001 environmental certification, 2001
Processes
Drylaid, needlepunched, spunbond/meltblown, thermal bond
Brand Names
Fibertex, Matchback, Comfortback, Flexback, Two-in-One, formtex, Superflor, Alupor
Major Markets
Industrial textiles—primary and secondary carpet backings, automotive, furniture and bedding; technical textiles—building and construction, horticulture; hygiene; protective clothing; packaging.
An ambitious global expansion strategy is clearly evident through the recent activities of Aalborg, Denmark-based Fibertex A/S. Just one year after building a spunmelt facility in Nilai, Malaysia, the company has already announced plans to add a second line to this operation. And, the acquisition of a Czech roll goods producer will boost Fibertex’s technical business, particularly in Central Europe.
“Our top priority is to become more global for a number of reasons,” said Knud Waede Hansen, managing director. “It boosts our credibility with large customers and brings us closer to markets we want to enter.”
Mr. Hansen is cognizant of the importance of prudence when expanding.
“You need to have a controlled expansion,” he explained. “You don’t want to fall into a trap of expanding too quickly.”
Currently, about 80% of Fibertex’s $130 million annual sales are generated within Europe, with the remaining split between North America and the Far East. This breakdown is expected to change as the company’s Malaysian operation—which represented only $3 million of total sales last year—contributes more. The successful startup of this line has already been proven through Fibertex’s decision, announced in April, to add a second line on a sharp increase in demand for nonwovens from the personal care segment. Representing a E36 million investment, the second line will reportedly have a 25% higher output than the existing line and be the first-of-its-kind operation in Southeast Asia when it comes onstream in mid-2005.
Adding a second line will benefit the Asian business in a number of ways “For an optimal operation, it’s better to have two lines for critical mass,” Mr. Hansen said. “This makes your operation more efficient. If you have a minor breakdown, it doesn’t throw everything off.”
The addition of the Malaysian operations has made personal care the larger of Fibertex’s two divisions, representing $70 million in annual sales. This segment, which Fibertex first entered in 1997, has been successful thanks to a strong commitment to producing soft, lightweight products for the market.
Meanwhile, Fibertex’s technical division is poised to benefit from the recent acquisition of Vigona, a Svitavy, Czech Republic-based manufacturer of needlepunched and thermal bonded nonwovens. This acquisition not only increases Fibertex’s presence in Eastern Europe, where manufacturing costs are considerably lower, it also provides access to markets such as specialty automotives, a booming business in this region.
With current sales of about DKK60 million, Vigona currently operates three facilities in the Czech Republic and employs 220 people. After spending DKK35 million for the company, Fibertex expects to invest as much as DKK200 million in improving the two Vigona sites located in Svitavy. While plans for the third site, located in Opatov, are unclear, executives said it could likely be consolidated into the two larger sites and closed.
This investment in the technical side of the business parallels recent investments in the personal care segment. While much attention has been paid to spunmelt during the past six years, executives are keen to express their continued commitment to technical applications. In August 2003, the company installed a new needlepunch line in Aalborg, which not only added capacity but also improved the quality of product offerings. This investment was followed by the construction of a large storage facility to improve logistics. Beyond automotives, key markets for the technical division include furniture and bedding and construction.
Having interests in both personal care and technical markets allows Fibertex enjoy the benefits of two worlds. In hygiene, the focus tends to be on a few big customers who are highly price conscious; in technical, customers tend to be more diversified with many different customers and applications as well as the ability to offer value-added properties. “It’s important to focus on developing new products and new niche markets,” Mr. Hansen said. “To do this, though, you need a certain capacity, so you can be taken seriously on the market.”