01.01.05
Location: Austell, GA
Sales: $82 million
Description: Key Personnel
Donald Mercer, CEO; Jim Bryja, vice president, sales and marketing; Edmund Merchlinsky, vice president, business management; Rush Clark, vice president, supply chain; Tom Lahey, sales manager, Geotextiles; Ralph Clements, vice president, manufacturing and engineering; Maryellen Queen, vice president, new business development; Phil Barnes, CFO; John Stover, General Counsel
Plants
Hazlehurst, GA; Nashville, GA; Seneca, SC
Processes
Needlepunched, RFX fabric process
Brand Names
AdBac, Duon, Petromat, RFX, Matrix, ProGuard, Petrotac
Major Markets
Geotextiles, furniture fabrics, packaging, automotive, carpet backing, industrial applications
Propex Fabrics Inc., formerly known as Amoco Fabrics and Fibers Company, is an Austell, GA-based needlepunched fabric manufacturer. Amoco Fabrics and Fibers was purchased by a group of investors on December 1, 2004.
Former parent BP plc had placed the company, a maker of woven and nonwoven substrates, on the selling block in 2001 but canceled the sale after a few months when market conditions made fetching a fair price unlikely. The unit was put back on the market early last year. So far, the transition from a subsidiary of a multinational corporation to a stand-alone company has been smooth.
“I believe we have had little immediate impact from the company’s transition to new ownership,” said Edmund Merchlinsky, vice president, business management. “While under BP ownership, we operated with a great deal of autonomy. Where we had some integration with our parent, for example, in IT systems, we made changes in our systems to disengage and allow independent operations and a seamless transition for our customers.”
In 2004, sales of nonwoven fabrics increased about 3% in terms of volume to 300 million square yards. Key product applications include geotextiles, furniture, carpet backing and automotives.
Despite competition, demand for nonwoven geotextiles grew in 2004, offsetting slight declines in other nonwoven products sold by Propex. “We see nonwoven geotextiles as a very competitive business in North America,” said Mr. Merchlinsky. “There is excess supply and strong price competition. New product offerings are limited. Some new products use nonwovens as part of a composite. For example, we offer two high performance paving fabrics, Pro-Guard and Petrotac —which include a nonwoven fabric as part of a composite structure. We see geotextiles as having good growth opportunities.”
Meanwhile, demand for nonwoven fabrics in the furniture and bedding industries continues to be impacted by the ongoing migration of the furniture manufacturing industry to Asia. One bright spot in this market, however, is the flame retardant legislation regulating the bedding industry in California, legislation that is expected to be followed by a nation-wide law. “We are evaluating our nonwovens technology to help our customers economically meet these requirements,” Mr. Merchlinsky said. “These flame resistance requirements are expected to expand to the entire U.S. within several years.”
Propex’s other key nonwovens application, automotive, has remained relatively constant due to flat production levels in North America.
Beyond these core areas, Propex assesses the value new products outside of these core areas can bring to its business. One example of this is Matrix, a differentiated carpet backing designed for carpets requiring high pattern definition and made from a woven/nonwoven composite structure.
While new product development is important, Propex is placing emphasis on improving the quality and competitiveness of existing products. “Our developments in nonwovens manufacturing technology are targeted on reducing waste and other manufacturing costs, as well as improving fabric uniformity and quality,” Mr. Merchlinsky said. “Product developments have focused on product improvements, generally designed to improve cost or performance, as well as developments using different materials than polypropylene.”
In addition to needlepunch nonwovens production, Propex can weave, film coat, laminate and emboss fabrics, allowing it to create products that add value to its customers. “Propex will continue to support and look for opportunities to grow in its core businesses,” Mr. Merchlinsky said. “We also believe we have opportunities we can develop with new products and with materials other than polypropylene.”
Currently, Propex purchases polypropylene from its former parent as well as a number of other suppliers. In the last several years, increases in polypropylene pricing have challenged Propex and other suppliers of polypropylene-based fabrics. “Although polypropylene is the primary raw material for the majority of the fabrics we offer, we believe longer term growth for our business will result from development of new products and working with alternate raw materials,” Mr. Merchlinsky said.
Sales: $82 million
Description: Key Personnel
Donald Mercer, CEO; Jim Bryja, vice president, sales and marketing; Edmund Merchlinsky, vice president, business management; Rush Clark, vice president, supply chain; Tom Lahey, sales manager, Geotextiles; Ralph Clements, vice president, manufacturing and engineering; Maryellen Queen, vice president, new business development; Phil Barnes, CFO; John Stover, General Counsel
Plants
Hazlehurst, GA; Nashville, GA; Seneca, SC
Processes
Needlepunched, RFX fabric process
Brand Names
AdBac, Duon, Petromat, RFX, Matrix, ProGuard, Petrotac
Major Markets
Geotextiles, furniture fabrics, packaging, automotive, carpet backing, industrial applications
Propex Fabrics Inc., formerly known as Amoco Fabrics and Fibers Company, is an Austell, GA-based needlepunched fabric manufacturer. Amoco Fabrics and Fibers was purchased by a group of investors on December 1, 2004.
Former parent BP plc had placed the company, a maker of woven and nonwoven substrates, on the selling block in 2001 but canceled the sale after a few months when market conditions made fetching a fair price unlikely. The unit was put back on the market early last year. So far, the transition from a subsidiary of a multinational corporation to a stand-alone company has been smooth.
“I believe we have had little immediate impact from the company’s transition to new ownership,” said Edmund Merchlinsky, vice president, business management. “While under BP ownership, we operated with a great deal of autonomy. Where we had some integration with our parent, for example, in IT systems, we made changes in our systems to disengage and allow independent operations and a seamless transition for our customers.”
In 2004, sales of nonwoven fabrics increased about 3% in terms of volume to 300 million square yards. Key product applications include geotextiles, furniture, carpet backing and automotives.
Despite competition, demand for nonwoven geotextiles grew in 2004, offsetting slight declines in other nonwoven products sold by Propex. “We see nonwoven geotextiles as a very competitive business in North America,” said Mr. Merchlinsky. “There is excess supply and strong price competition. New product offerings are limited. Some new products use nonwovens as part of a composite. For example, we offer two high performance paving fabrics, Pro-Guard and Petrotac —which include a nonwoven fabric as part of a composite structure. We see geotextiles as having good growth opportunities.”
Meanwhile, demand for nonwoven fabrics in the furniture and bedding industries continues to be impacted by the ongoing migration of the furniture manufacturing industry to Asia. One bright spot in this market, however, is the flame retardant legislation regulating the bedding industry in California, legislation that is expected to be followed by a nation-wide law. “We are evaluating our nonwovens technology to help our customers economically meet these requirements,” Mr. Merchlinsky said. “These flame resistance requirements are expected to expand to the entire U.S. within several years.”
Propex’s other key nonwovens application, automotive, has remained relatively constant due to flat production levels in North America.
Beyond these core areas, Propex assesses the value new products outside of these core areas can bring to its business. One example of this is Matrix, a differentiated carpet backing designed for carpets requiring high pattern definition and made from a woven/nonwoven composite structure.
While new product development is important, Propex is placing emphasis on improving the quality and competitiveness of existing products. “Our developments in nonwovens manufacturing technology are targeted on reducing waste and other manufacturing costs, as well as improving fabric uniformity and quality,” Mr. Merchlinsky said. “Product developments have focused on product improvements, generally designed to improve cost or performance, as well as developments using different materials than polypropylene.”
In addition to needlepunch nonwovens production, Propex can weave, film coat, laminate and emboss fabrics, allowing it to create products that add value to its customers. “Propex will continue to support and look for opportunities to grow in its core businesses,” Mr. Merchlinsky said. “We also believe we have opportunities we can develop with new products and with materials other than polypropylene.”
Currently, Propex purchases polypropylene from its former parent as well as a number of other suppliers. In the last several years, increases in polypropylene pricing have challenged Propex and other suppliers of polypropylene-based fabrics. “Although polypropylene is the primary raw material for the majority of the fabrics we offer, we believe longer term growth for our business will result from development of new products and working with alternate raw materials,” Mr. Merchlinsky said.