01.01.04
Location: Denver, CO
Sales: $500 MILLION
Description: Key Personnel
Dion Persson, senior vice president, Engineered Products Group; Marvin Mitchell, VP for High Performance Nonwovens; Zain Mahmood, VP for Roofing Materials; Luc Mechelaere, VP of Johns Manville Europe; Jack Leunig, VP for Operations
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
Microlith, DuraGlass, Delta-Aire, DynaWick, DynaWeb, DynaTech, Micro-Aire, MicroLith, Ecomat, Duraglass, and Combimat
Major Markets
Roofing substrates, air and liquid filtration, sorbents, battery separators, geotextiles, flooring substrates and facers for building products
Despite a continued downturn in many of its core markets, building materials specialist Johns Manville was able to report double-digit sales growth in 2003 for nonwovens products. Much of this success can be attributed to an ambitious global expansion strategy, particularly in central and eastern Europe, as well as the development of new products and market areas.
The Denver-based company operates through three groups—Engineered Products, Insulation and Roofing Systems. The Engineered Products business, which contains JM’s nonwovens operations, is divided into three global segments—Reinforcement Fibers, Roofing Materials and High Performance Nonwovens (a combination of glass and synthetic mats and filtration media). Each division is managed by global teams, allowing the company to respond to global trends.
High Performance Nonwovens and Roofing Materials, the two areas related to nonwovens, are led by Marvin Mitchell and Zain Mahmood, respectively. Operating the business through comprehensive global teams allows the company to serve its customers regionally while responding to their needs locally. This structure has also allowed JM to look at capacities and products from a global standpoint, allowing capacity adjustment and other modifications to meet the company’s global needs. This has resulted in a continued translation of capacity between Europe and North America.
In North America, JM produces nonwovens in Ohio, Mississippi, South Carolina and Tennessee. The Richland, MS-based meltblown operation has seen significant improvements in the past year. Now executives are focused on getting all of its capacity used before expanding further, either in the U.S. or Europe.
Still, capacity is tight in Europe where JM has four facilities in Germany, all centering on glass mat, spunbond and air media technology, as well as a large fiberglass operation in Slovakia. The Slovakian site, acquired from Skloplast in early 2001, has been at the heart of JM’s investment strategy. A new glass fiber furnace representing an $85 million investment is set to start in October. “We will continue to invest in Central European markets,” said Mr. Mitchell. “This area continues to grow and as it does, it will translate into great opportunities.”
And, chances are it won’t be long before a nonwovens operation is put in place in the region as JM is in the final stages of determining where to locate the next spunbond line to support demand. This interest in Central and Eastern Europe is the result of the region’s strong growth prospects. As these countries gain EU status and as their economies improve, they will experience growth in many of the markets JM serves. Additionally, the area boasts a solid infrastructure and a highly skilled workforce.
Included in High Performance Nonwovens are air and liquid filtration, sorbents, battery separators and geotextiles. To the filtration market, JM offers both glass-based and synthetic media using four different technologies. Growth in synthetic media is in the double-digit range thanks to increased awareness over the importance of air and water quality on a global level. Particularly in Asia, where the threat of highly contagious diseases is prompting increased use of high efficiency air media.
One subset seeing significant gains is the cleanroom market where low boron, microfiber-based media was introduced to boost JM’s presence. “We are currently evaluating new market areas that look very attractive,” Mr. Mitchell said. “We are trying to determine where high value products make the most sense.”
Another area showing promise is battery separators with sales more or less split between North America and Europe. In geotextiles, demand is growing significantly in Asia and Europe but in the U.S.; JM has been hurt by the cost advantage of polypropylene over polyester.
Still first and foremost, Johns Manville is a building products producer and much of its efforts are focused on expanding its depth in this market. In April, the company introduced the DuraGlass 8200 series, a new glass fiber nonwoven with a unique, formaldehyde-free binder for architectural panels and facings. Product benefits of this flame resistant nonwoven include resiliency, durability, sag resistance, and an ability to laminate to multiple aesthetic cover materials.
Meanwhile, on the roofing side of the business, JM’s Duragrid glass scrim-reinforced polyester product continues to be successful. Combining the benefits of both glass and polyester in one product allows roofing companies to run their manufacturing processes at faster speeds, thus upping their capacity.
In short, JM has been able to grow its nonwoven product lives and sales through a number of strategies, with new product development and globalization chief among them. But outside factors, such as economic conditions, can greatly impact sales. On the commercial side, improvements in sales have come as companies, entering recovery mode, have begun allotting discretionary spending on capital projects. Meanwhile, JM’s residential business has benefited from record numbers in housing starts as well as increased home improvement projects spurred by lower interest rates. As interest rates climb, as they are predicted to do in coming months, JM does not think it would influence the business too badly. “We are not that sensitive to interest rates,” Mr. Mahmood said. “We are only susceptible if they affect the entire economy.”
Sales: $500 MILLION
Description: Key Personnel
Dion Persson, senior vice president, Engineered Products Group; Marvin Mitchell, VP for High Performance Nonwovens; Zain Mahmood, VP for Roofing Materials; Luc Mechelaere, VP of Johns Manville Europe; Jack Leunig, VP for Operations
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
Microlith, DuraGlass, Delta-Aire, DynaWick, DynaWeb, DynaTech, Micro-Aire, MicroLith, Ecomat, Duraglass, and Combimat
Major Markets
Roofing substrates, air and liquid filtration, sorbents, battery separators, geotextiles, flooring substrates and facers for building products
Despite a continued downturn in many of its core markets, building materials specialist Johns Manville was able to report double-digit sales growth in 2003 for nonwovens products. Much of this success can be attributed to an ambitious global expansion strategy, particularly in central and eastern Europe, as well as the development of new products and market areas.
The Denver-based company operates through three groups—Engineered Products, Insulation and Roofing Systems. The Engineered Products business, which contains JM’s nonwovens operations, is divided into three global segments—Reinforcement Fibers, Roofing Materials and High Performance Nonwovens (a combination of glass and synthetic mats and filtration media). Each division is managed by global teams, allowing the company to respond to global trends.
High Performance Nonwovens and Roofing Materials, the two areas related to nonwovens, are led by Marvin Mitchell and Zain Mahmood, respectively. Operating the business through comprehensive global teams allows the company to serve its customers regionally while responding to their needs locally. This structure has also allowed JM to look at capacities and products from a global standpoint, allowing capacity adjustment and other modifications to meet the company’s global needs. This has resulted in a continued translation of capacity between Europe and North America.
In North America, JM produces nonwovens in Ohio, Mississippi, South Carolina and Tennessee. The Richland, MS-based meltblown operation has seen significant improvements in the past year. Now executives are focused on getting all of its capacity used before expanding further, either in the U.S. or Europe.
Still, capacity is tight in Europe where JM has four facilities in Germany, all centering on glass mat, spunbond and air media technology, as well as a large fiberglass operation in Slovakia. The Slovakian site, acquired from Skloplast in early 2001, has been at the heart of JM’s investment strategy. A new glass fiber furnace representing an $85 million investment is set to start in October. “We will continue to invest in Central European markets,” said Mr. Mitchell. “This area continues to grow and as it does, it will translate into great opportunities.”
And, chances are it won’t be long before a nonwovens operation is put in place in the region as JM is in the final stages of determining where to locate the next spunbond line to support demand. This interest in Central and Eastern Europe is the result of the region’s strong growth prospects. As these countries gain EU status and as their economies improve, they will experience growth in many of the markets JM serves. Additionally, the area boasts a solid infrastructure and a highly skilled workforce.
Included in High Performance Nonwovens are air and liquid filtration, sorbents, battery separators and geotextiles. To the filtration market, JM offers both glass-based and synthetic media using four different technologies. Growth in synthetic media is in the double-digit range thanks to increased awareness over the importance of air and water quality on a global level. Particularly in Asia, where the threat of highly contagious diseases is prompting increased use of high efficiency air media.
One subset seeing significant gains is the cleanroom market where low boron, microfiber-based media was introduced to boost JM’s presence. “We are currently evaluating new market areas that look very attractive,” Mr. Mitchell said. “We are trying to determine where high value products make the most sense.”
Another area showing promise is battery separators with sales more or less split between North America and Europe. In geotextiles, demand is growing significantly in Asia and Europe but in the U.S.; JM has been hurt by the cost advantage of polypropylene over polyester.
Still first and foremost, Johns Manville is a building products producer and much of its efforts are focused on expanding its depth in this market. In April, the company introduced the DuraGlass 8200 series, a new glass fiber nonwoven with a unique, formaldehyde-free binder for architectural panels and facings. Product benefits of this flame resistant nonwoven include resiliency, durability, sag resistance, and an ability to laminate to multiple aesthetic cover materials.
Meanwhile, on the roofing side of the business, JM’s Duragrid glass scrim-reinforced polyester product continues to be successful. Combining the benefits of both glass and polyester in one product allows roofing companies to run their manufacturing processes at faster speeds, thus upping their capacity.
In short, JM has been able to grow its nonwoven product lives and sales through a number of strategies, with new product development and globalization chief among them. But outside factors, such as economic conditions, can greatly impact sales. On the commercial side, improvements in sales have come as companies, entering recovery mode, have begun allotting discretionary spending on capital projects. Meanwhile, JM’s residential business has benefited from record numbers in housing starts as well as increased home improvement projects spurred by lower interest rates. As interest rates climb, as they are predicted to do in coming months, JM does not think it would influence the business too badly. “We are not that sensitive to interest rates,” Mr. Mahmood said. “We are only susceptible if they affect the entire economy.”