01.01.05
Location: Linz, Austria
Sales: $128 million
Description: Key Personnel
Michel Haudrechy, CEO; Andreas Matje, CFO; Wolfgang Aue, group marketing manager; Roland Konrad, group sales manager; Philippe Delmas, group research and development manager, Michel Haudrechy, president, Bidim; John Smith, managing director, Polyfelt Asia
Plants
Linz, Austria; Bezons, France, Kuala Lumpar, Malaysia, Albury, Australia
ISO Status
ISO 9001:2000
Processes
Spunbond and needlepunch
Brand Names
Polyfelt, Bidim (geotextiles and geocomposites), Polyline, Polymat, Megadrain, Envirofelt, Enviromat, Polyfelt AR, Polyfelt Hydrocomp, Polyfelt Rock PEC, Polyfelt Rock GX
Major Markets
Geotextiles and geosynthetics
With sales topping the €103 million mark, geotextiles specialist Polyfelt, Linz, Austria, managed to maintain a steady growth rate of 8% in 2004 in the face of challenging market conditions. “Sales and earnings growth were satisfactory despite some negative effects from U.S. dollar devaluation against the Euro. Although raw material costs were rising significantly, Polyfelt was able to achieve good margins from value-added products,” commented Wolfgang Aue, group marketing manager. He added that the geotextile markets in Europe are growing at a fairly low rate with construction business growth in most European countries below GDP growth.
Of Polyfelt’s 40,000 metric tons of capacity, the majority (70%) targets European markets while Asia/Australia account for approximately a quarter of the company’s business and the rest of the world makes up the remainder. In terms of exports, about 90% of Polyfelt’s sales continue to be generated outside of Austria, which Mr. Aue described as a well-developed geosynthetics market with moderate growth rates.
In discussing the current state of the market, Mr. Aue named product and service quality as key factors shaping the global geotextiles business. “However,” he said, “the trend for unification of standards will push commoditization further. We are seeing commoditization in main application areas, especially in infrastructure development where there are fair chances for smaller niches with special, value-added products and services.” Mr. Aue explained that in spite of such market forces, Polyfelt has been able to maintain a leadership position by building long-term, reliable relationships with its customers.
Polyfelt’s biggest news this year comes in the form of a new 9500 metric ton high performance geotextiles line in Linz, which came onstream in April. The €11 million investment is designed to increase production capacity for geotextiles and further develop the company’s own cutting-edge technology. Polyfelt’s Linz site is expected to benefit from its close proximity to new EU members and the other growth markets of Central and Eastern Europe. Additionally, the company’s newest sales office in New Delhi is expected to help Polyfelt gain a foothold in the booming Indian market for geotextiles.
Commenting on the company’s latest expansion, Mr. Aue described the line as a newly developed, unique draw-off and lay-down-system combined with water jet bonding. “The new plant was designed to achieve advanced product quality and to significantly reduce maintaining cycles and cost.” He added that further expansions are being considered but are not yet specifically planned.
Recent new product efforts in its core market of civil engineering have centered on reinforced high strength geotextiles with different kinds of polymeric yarns such as Polyfelt Rock HM (a polypropylene/aramide bicomponent). Also new from Polyfelt is Geodetect, which is an innovative geotextile-based monitoring system. It consists of Polyfelt Rock PEC high strength geotextiles equipped with optic fibers linked to a monitoring device and a computer.
The system is designed to increase the safety of civil-engineering infrastructure through cost-effective predictive maintenance, especially in sensitive areas. Geodetect is a system developed for the measurement of strain in application areas such as roads and railways, retaining walls, tunnels and other underground structures and pipes (for gas, water or oil).
Looking ahead, Polyfelt’s long-term growth strategy promises to be influenced by the outcome of its planned sale by owner OMV. OMV is seeking a strong investor for the company, capable of fully supporting it in consolidating its international position. The major requirements for investors are a sustainable and profitable investment plan and safeguard for Polyfelt’s Linz headquarters. The decision to sell Polyfelt to a strong investor is a logical step as Polyfelt’s specialization in geosynthetics is continuously moving away from OMV’s business focus. A leading Central European oil and gas supplier, OMV acquired Polyfelt from Chemie Linz AG in 1988.
According to Polyfelt, the move is intended to streamline OMV’s portfolio and enable greater focus on OMV’s core business. Negotiations are being conducted confidentially, according to a recent press release from the company. “The divestment creates a win-win situation for both sides,” commented Gerhard Roiss, OMV associate managing director responsible for Polyfelt. OMV will be in a position to concentrate more on developing its core business. Polyfelt will be able to focus more strongly on its international growth. We are committed to ensuring that Polyfelt takes a partner that will uphold the company’s values and support strategic growth in geosynthetics,” said Mr. Roiss.
Sales: $128 million
Description: Key Personnel
Michel Haudrechy, CEO; Andreas Matje, CFO; Wolfgang Aue, group marketing manager; Roland Konrad, group sales manager; Philippe Delmas, group research and development manager, Michel Haudrechy, president, Bidim; John Smith, managing director, Polyfelt Asia
Plants
Linz, Austria; Bezons, France, Kuala Lumpar, Malaysia, Albury, Australia
ISO Status
ISO 9001:2000
Processes
Spunbond and needlepunch
Brand Names
Polyfelt, Bidim (geotextiles and geocomposites), Polyline, Polymat, Megadrain, Envirofelt, Enviromat, Polyfelt AR, Polyfelt Hydrocomp, Polyfelt Rock PEC, Polyfelt Rock GX
Major Markets
Geotextiles and geosynthetics
With sales topping the €103 million mark, geotextiles specialist Polyfelt, Linz, Austria, managed to maintain a steady growth rate of 8% in 2004 in the face of challenging market conditions. “Sales and earnings growth were satisfactory despite some negative effects from U.S. dollar devaluation against the Euro. Although raw material costs were rising significantly, Polyfelt was able to achieve good margins from value-added products,” commented Wolfgang Aue, group marketing manager. He added that the geotextile markets in Europe are growing at a fairly low rate with construction business growth in most European countries below GDP growth.
Of Polyfelt’s 40,000 metric tons of capacity, the majority (70%) targets European markets while Asia/Australia account for approximately a quarter of the company’s business and the rest of the world makes up the remainder. In terms of exports, about 90% of Polyfelt’s sales continue to be generated outside of Austria, which Mr. Aue described as a well-developed geosynthetics market with moderate growth rates.
In discussing the current state of the market, Mr. Aue named product and service quality as key factors shaping the global geotextiles business. “However,” he said, “the trend for unification of standards will push commoditization further. We are seeing commoditization in main application areas, especially in infrastructure development where there are fair chances for smaller niches with special, value-added products and services.” Mr. Aue explained that in spite of such market forces, Polyfelt has been able to maintain a leadership position by building long-term, reliable relationships with its customers.
Polyfelt’s biggest news this year comes in the form of a new 9500 metric ton high performance geotextiles line in Linz, which came onstream in April. The €11 million investment is designed to increase production capacity for geotextiles and further develop the company’s own cutting-edge technology. Polyfelt’s Linz site is expected to benefit from its close proximity to new EU members and the other growth markets of Central and Eastern Europe. Additionally, the company’s newest sales office in New Delhi is expected to help Polyfelt gain a foothold in the booming Indian market for geotextiles.
Commenting on the company’s latest expansion, Mr. Aue described the line as a newly developed, unique draw-off and lay-down-system combined with water jet bonding. “The new plant was designed to achieve advanced product quality and to significantly reduce maintaining cycles and cost.” He added that further expansions are being considered but are not yet specifically planned.
Recent new product efforts in its core market of civil engineering have centered on reinforced high strength geotextiles with different kinds of polymeric yarns such as Polyfelt Rock HM (a polypropylene/aramide bicomponent). Also new from Polyfelt is Geodetect, which is an innovative geotextile-based monitoring system. It consists of Polyfelt Rock PEC high strength geotextiles equipped with optic fibers linked to a monitoring device and a computer.
The system is designed to increase the safety of civil-engineering infrastructure through cost-effective predictive maintenance, especially in sensitive areas. Geodetect is a system developed for the measurement of strain in application areas such as roads and railways, retaining walls, tunnels and other underground structures and pipes (for gas, water or oil).
Looking ahead, Polyfelt’s long-term growth strategy promises to be influenced by the outcome of its planned sale by owner OMV. OMV is seeking a strong investor for the company, capable of fully supporting it in consolidating its international position. The major requirements for investors are a sustainable and profitable investment plan and safeguard for Polyfelt’s Linz headquarters. The decision to sell Polyfelt to a strong investor is a logical step as Polyfelt’s specialization in geosynthetics is continuously moving away from OMV’s business focus. A leading Central European oil and gas supplier, OMV acquired Polyfelt from Chemie Linz AG in 1988.
According to Polyfelt, the move is intended to streamline OMV’s portfolio and enable greater focus on OMV’s core business. Negotiations are being conducted confidentially, according to a recent press release from the company. “The divestment creates a win-win situation for both sides,” commented Gerhard Roiss, OMV associate managing director responsible for Polyfelt. OMV will be in a position to concentrate more on developing its core business. Polyfelt will be able to focus more strongly on its international growth. We are committed to ensuring that Polyfelt takes a partner that will uphold the company’s values and support strategic growth in geosynthetics,” said Mr. Roiss.