01.01.05
Location: Tel Aviv, Israel
Sales: $123 million
Description: Key Personnel
Shuki Goldwasser, chairman; Nir Peleg, CEO; Achai Bonneh, vice president of technology; Sari Goldwasser-Uri, vice president of sales
Plants
Tel Aviv, Israel; Mocksville, NC
ISO Status
ISO 9002 Certified
Processes
Spunbonded, meltblown
Brand name
Zebra
Major Markets
Hygiene, medical, filtration, construction, agriculture, furniture, upholstery
Avgol executives have described 2004 as another successful year in the company’s history. The Tel Aviv, Israel-based company was able to increase its nonwovens sales from $106 million to $123 million thanks to strong customer relationships as well as increased nonwovens output.
“A key contribution to our growth is the continuing confidence and trust we receive from our customers in growing their activities with us, thus enabling us to concentrate on efficacy to serve them according to their expectations and using our creativity for new products, which will help them benefit in the future,” said company chairman Shuki Goldwasser.
Avgol currently runs five spunmelt lines in two Israeli facilities as well as two lines in Mocksville, NC. Additionally, future growth is expected through the start up of a third North Carolina line during the fourth quarter of 2005, which will bring Avgol’s worldwide capacity to exceed 80,000 tons.
The new North American line responds to customer demand in that region. Nearly 75% of the company’s business is conducted in North America and this business has continued to thrive thanks to the North American lines. Avgol first entered North America in 2001 when it purchased the Mocksville, NC site, containing a Reifenhauser spunmelt line, from Unifi. A second line was added last year.
In addition to its facilities in North Carolina and Israel, Avgol operates a 50/50 joint venture with Hubei Goldkinglong Investment Stock Co. Ltd. dedicated to the production of spunmelt nonwovens in China. Located 300 miles southwest of Shanghai, in
Jingmen City’s High Tech Development Area, this HGD joint venture company began production on a 3.2-meter-wide SM”X”S Reifenhaeuser line in January 2005 to meet Chinese demand for spunmelt fabrics. Key markets include hygiene and medical in both China and other Asian countries. The first Reifenhauser line, a 3.2-meter-wide SM”X”S machine, will produce 10,000 metric tons per year and will include Avgol’s proprietary technology and spunmelt technology know how.
According to executives, the Chinese joint venture is the result of a strategic decision to target markets prime for future growth. Future investments will also center on this philosophy and be located in proximity to key growth areas.
Currently 100% of its more than 60,000 tons of nonwovens output consists of polypropylene-based spunmelt. In the past year, polypropylene has fallen victim to severe price fluctuations, which have had significant impact on the nonwovens industry. Avgol was able to thrive despite these challenges but executives recognize their impact on the industry. “We were able to achieve our goals in 2004 despite the dramatic hike in the price of resin throughout the year,” Mr. Goldwasser said. “This is a devastating situation for the industry and I assume only the companies that are efficient enough can survive a “ride” of this nature. Long term, we believe that this is not a healthy trend and will continue causing margins to shrink, which will have a very grim implication on new investments.”"
Sales: $123 million
Description: Key Personnel
Shuki Goldwasser, chairman; Nir Peleg, CEO; Achai Bonneh, vice president of technology; Sari Goldwasser-Uri, vice president of sales
Plants
Tel Aviv, Israel; Mocksville, NC
ISO Status
ISO 9002 Certified
Processes
Spunbonded, meltblown
Brand name
Zebra
Major Markets
Hygiene, medical, filtration, construction, agriculture, furniture, upholstery
Avgol executives have described 2004 as another successful year in the company’s history. The Tel Aviv, Israel-based company was able to increase its nonwovens sales from $106 million to $123 million thanks to strong customer relationships as well as increased nonwovens output.
“A key contribution to our growth is the continuing confidence and trust we receive from our customers in growing their activities with us, thus enabling us to concentrate on efficacy to serve them according to their expectations and using our creativity for new products, which will help them benefit in the future,” said company chairman Shuki Goldwasser.
Avgol currently runs five spunmelt lines in two Israeli facilities as well as two lines in Mocksville, NC. Additionally, future growth is expected through the start up of a third North Carolina line during the fourth quarter of 2005, which will bring Avgol’s worldwide capacity to exceed 80,000 tons.
The new North American line responds to customer demand in that region. Nearly 75% of the company’s business is conducted in North America and this business has continued to thrive thanks to the North American lines. Avgol first entered North America in 2001 when it purchased the Mocksville, NC site, containing a Reifenhauser spunmelt line, from Unifi. A second line was added last year.
In addition to its facilities in North Carolina and Israel, Avgol operates a 50/50 joint venture with Hubei Goldkinglong Investment Stock Co. Ltd. dedicated to the production of spunmelt nonwovens in China. Located 300 miles southwest of Shanghai, in
Jingmen City’s High Tech Development Area, this HGD joint venture company began production on a 3.2-meter-wide SM”X”S Reifenhaeuser line in January 2005 to meet Chinese demand for spunmelt fabrics. Key markets include hygiene and medical in both China and other Asian countries. The first Reifenhauser line, a 3.2-meter-wide SM”X”S machine, will produce 10,000 metric tons per year and will include Avgol’s proprietary technology and spunmelt technology know how.
According to executives, the Chinese joint venture is the result of a strategic decision to target markets prime for future growth. Future investments will also center on this philosophy and be located in proximity to key growth areas.
Currently 100% of its more than 60,000 tons of nonwovens output consists of polypropylene-based spunmelt. In the past year, polypropylene has fallen victim to severe price fluctuations, which have had significant impact on the nonwovens industry. Avgol was able to thrive despite these challenges but executives recognize their impact on the industry. “We were able to achieve our goals in 2004 despite the dramatic hike in the price of resin throughout the year,” Mr. Goldwasser said. “This is a devastating situation for the industry and I assume only the companies that are efficient enough can survive a “ride” of this nature. Long term, we believe that this is not a healthy trend and will continue causing margins to shrink, which will have a very grim implication on new investments.”"