01.01.04
Location: Nakkila, Finland
Sales: $87.5 Million
Description: Key Personnel
Suominen Corporation: Heikki Bergholm, president and CEO, Harri Myllylä, senior vice president, Esa Palttala, vice president, Nonwovens; Juha Henttonen, vice president, Flexible Packaging and Webbing products, Margareta Huldén, vice president, products and process development; Arto Kiiskinen, vice president, chief financial officer, finance.
Suominen Nonwovens: Teppo Lainio, production director, Kari Granfors, sales director
Plant
Nakkila, Finland
ISO Status
ISO 9001, 14001 environmental certification
Processes
Hydroentangled, thermal bonded
Brand Names
Novelin, Fibrella
Major Markets
Wipes, hygiene, medical
A 13% drop in 2003 nonwovens sales for Suominen Nonwovens can reportedly be blamed on price competition in the market for spunlaced nonwovens. While demand for these products, mainly from the European wet wipes market, continued to grow, new players lessened Suominen’s marketshare. Additionally, sales of thermal bonded nonwovens for the hygiene and healthcare markets declined.
This lower capacity utilization across Suominen’s production lines in Nakkila, Finland led to uneven production loads for a part of the year, which ultimately impacted profits. This situation, however, was resolved by the end of the year.
Still, for the first six months of 2004, nonwovens sales at Suominen continued their decline due to weak pricing. Net sales dropped 4% to E37.9 million. These lower costs could not offset increased sales volumes of hydroentangled wiping products caused U.S. gains and substantial increase in the sales volumes of hygiene and healthcare products.
In October 2003, Suominen acquired Dutch wet wipes converter Codi International, the third largest wipes manufacturer in Europe. This acquisition has allowed Suominen to move forward with its strategy of wet wipes manufacturing, an area in which it previously supplied nonwoven roll goods. The Codi acquisition is now an independent business area called Suominen Wet Wipes, which is worth about E60 million. According to Codi’s financial statements for 2002, nets sales were E85.2 million while operating profit was E6.7 million. It has an average staff of 346 employees. Sales are split between baby care products and personal hygiene and household cleaning wipes.
Currently about 80% of nonwovens output is spunlaced and main markets include wipes, healthcare and medical.
The remaining 20% of Suominen’s output is thermal bonding, although its capacity was reduced somewhat in 2001 when an older line was closed. Some of this capacity was recouped through the aforementioned modernization program. This market has lately been characterized by competition from spunbonded materials, particularly in topsheets for hygiene items. Suominen has been examining niche areas such as feminine hygiene and adult incontinence to regain marketshare.
For now, the company will continue to focus on aligning its new business organization, which began with the Codi Acquisition. As a corporation, Suominen is now comprised of four major areas: Suominen Wet Wipes, Suominen Nonwovens and Suominen Flexible Packaging Group. Webbing Products, formerly its own division, has been integrated into other business operations. Each is responsible for its own operation but supported by common product and process development, purchasing, logistics and financial performance.
Currently the nonwovens segment is the largest of the three areas, comprising more than half of sales. Suominen will continue to focus on its core areas of wipes, health care and medical applications, to continue growth, particularly in Europe.
Sales: $87.5 Million
Description: Key Personnel
Suominen Corporation: Heikki Bergholm, president and CEO, Harri Myllylä, senior vice president, Esa Palttala, vice president, Nonwovens; Juha Henttonen, vice president, Flexible Packaging and Webbing products, Margareta Huldén, vice president, products and process development; Arto Kiiskinen, vice president, chief financial officer, finance.
Suominen Nonwovens: Teppo Lainio, production director, Kari Granfors, sales director
Plant
Nakkila, Finland
ISO Status
ISO 9001, 14001 environmental certification
Processes
Hydroentangled, thermal bonded
Brand Names
Novelin, Fibrella
Major Markets
Wipes, hygiene, medical
A 13% drop in 2003 nonwovens sales for Suominen Nonwovens can reportedly be blamed on price competition in the market for spunlaced nonwovens. While demand for these products, mainly from the European wet wipes market, continued to grow, new players lessened Suominen’s marketshare. Additionally, sales of thermal bonded nonwovens for the hygiene and healthcare markets declined.
This lower capacity utilization across Suominen’s production lines in Nakkila, Finland led to uneven production loads for a part of the year, which ultimately impacted profits. This situation, however, was resolved by the end of the year.
Still, for the first six months of 2004, nonwovens sales at Suominen continued their decline due to weak pricing. Net sales dropped 4% to E37.9 million. These lower costs could not offset increased sales volumes of hydroentangled wiping products caused U.S. gains and substantial increase in the sales volumes of hygiene and healthcare products.
In October 2003, Suominen acquired Dutch wet wipes converter Codi International, the third largest wipes manufacturer in Europe. This acquisition has allowed Suominen to move forward with its strategy of wet wipes manufacturing, an area in which it previously supplied nonwoven roll goods. The Codi acquisition is now an independent business area called Suominen Wet Wipes, which is worth about E60 million. According to Codi’s financial statements for 2002, nets sales were E85.2 million while operating profit was E6.7 million. It has an average staff of 346 employees. Sales are split between baby care products and personal hygiene and household cleaning wipes.
Currently about 80% of nonwovens output is spunlaced and main markets include wipes, healthcare and medical.
The remaining 20% of Suominen’s output is thermal bonding, although its capacity was reduced somewhat in 2001 when an older line was closed. Some of this capacity was recouped through the aforementioned modernization program. This market has lately been characterized by competition from spunbonded materials, particularly in topsheets for hygiene items. Suominen has been examining niche areas such as feminine hygiene and adult incontinence to regain marketshare.
For now, the company will continue to focus on aligning its new business organization, which began with the Codi Acquisition. As a corporation, Suominen is now comprised of four major areas: Suominen Wet Wipes, Suominen Nonwovens and Suominen Flexible Packaging Group. Webbing Products, formerly its own division, has been integrated into other business operations. Each is responsible for its own operation but supported by common product and process development, purchasing, logistics and financial performance.
Currently the nonwovens segment is the largest of the three areas, comprising more than half of sales. Suominen will continue to focus on its core areas of wipes, health care and medical applications, to continue growth, particularly in Europe.