01.01.07
Location: Aalborg, Denmark
Sales: $222 million
Description: Key Personnel
Michael Meulengracht, managing director; Mikael Staal Axelsen, general manager, Personal Care Division; Jorgen Bech Madsen, general manager, Technical Division; Kenneth Mynster Dolmer, purchasing director; Ole Houmann, Finance Director
Plants
Two in Aalborg; one in Malaysia, two in the Czech Republic
ISO Status
DS/EN ISO 9001 Quality management 1991:2000; DS/ISO 14001 Environmental management 2001; DS 2403 Energy management
Processes
Drylaid, carded, needlepunched, thermalbonded, spunbond/ meltblown
Brand Names
Fibertex, Flexback, Formtex, Compoflex, Multigeo, Superflor, Weedseal, Fiberforce, Fibergreen, Fibertex patio, Fibertex universal, Fiberacoustic, Two-in-One, Comfortback, Matchback, Woodback, Q-match, Making the perfect match
Major Markets
Industrial textiles-primary and secondary carpet backings, automotive, furniture and bedding, filtration; technical textiles—building and construction, composites, do-it-yourself, horticulture; hygiene; protective clothing; packaging
Describing the year as challenging was Danish nonwovens producer Fibertex, who reported 16% sales growth but admitted that earnings did not follow this growth trend, due largely to external problems, namely raw material increases. According to the company, sales were $222 million compared to $195 million in 2005 while earnings declined to $5.5 million.
In addition to raw material price increases, Fibertex’s earnings were negatively impacted by complications associated with bringing a six-meter, state-of-the-art NSC needleloom onstream at its Czech Republic facility. While this problem has been fixed, it did lead to a delay in transferring two older lines from the Czech site, which Fibertex acquired from Vigona in 2004.
“We did face problems in our Czech operation with manufacturing efficiency on an existing line. That has been fixed,” said Michael Meulengracht, who replaced retired Knud Waede Hansen as Fibertex managing director in January.
The Czech operation, acquired from Vigona in 2004, currently includes thermal bonding, drylaid and needlepunching machines. Fibertex is reconfiguring an older drylaid line at the site to offer a new technology and will then decide if it’s wise to add news lines there as well.
Fibertex purchased the Czech operation in 2004, partly to better target Central and Eastern Europe and partly to increase its role in technical markets. Currently, a big portion of the output in the Czech Republic serves the automotives market, where there is always pressure to keep costs down. However, Fibertex is benefiting from the location of this operation as many of the Tier One automotive suppliers have operations in the Eastern Block countries. Other markets being served by Fibertex’s technical division include furniture and bedding, filtration and geotextiles.
In addition to the Vigona site, Fibertex runs a needlepunch operation from its Aalborg, Denmark facility to target technical markets. As a whole, Fibertex’s technical division increased its sales 9% in 2006 to reach $90 million.
Meanwhile, Fibertex’s hygiene business—which grew sales 20% to $135.5 million last year—continues to benefit from new investment, the latest of which, a new Reifenhauser line, began operating at Fibertex’s Aalborg headquarters in January. The new line, the facility’s third spunmelt machine, increased capacity there by 50% and is already contributing to the bottom line, according to Mr. Meulengracht.
“Hygiene still performs well for us,” he said. “It’s all about providing a solid package there, running at an acceptable capacity utilization.”
In addition to three lines in Aalborg, Fibertex operates two Reifenhauser spunmelt lines serving the hygiene market at its Malaysian facility near Kaula Lumpur. These lines serve the Asia-Pacific regions as well as Europe. “Asia-Pacific is growing significantly because the developing countries are full of people who are improving their lifestyles,” Mr. Meulengracht said. “There are 100 million people in China who have enough money for hygiene products.”
Also benefiting Fibertex’s Asian-Pacific business is lack of local competition. Products being made by Asian companies continue to be sub-quality compared to Western competitors.
During the past decade, much of Fibertex’s growth has come from new investments, including the construction of lines as well as investment of new businesses. Currently, no new capacity is planned but executives insist the company is still in growth mode. “There are a lot of ways to achieve growth,” said Mr. Meulengracht. “It can be joint ventures, capacity expansions, acquisitions, etc.”
Sales: $222 million
Description: Key Personnel
Michael Meulengracht, managing director; Mikael Staal Axelsen, general manager, Personal Care Division; Jorgen Bech Madsen, general manager, Technical Division; Kenneth Mynster Dolmer, purchasing director; Ole Houmann, Finance Director
Plants
Two in Aalborg; one in Malaysia, two in the Czech Republic
ISO Status
DS/EN ISO 9001 Quality management 1991:2000; DS/ISO 14001 Environmental management 2001; DS 2403 Energy management
Processes
Drylaid, carded, needlepunched, thermalbonded, spunbond/ meltblown
Brand Names
Fibertex, Flexback, Formtex, Compoflex, Multigeo, Superflor, Weedseal, Fiberforce, Fibergreen, Fibertex patio, Fibertex universal, Fiberacoustic, Two-in-One, Comfortback, Matchback, Woodback, Q-match, Making the perfect match
Major Markets
Industrial textiles-primary and secondary carpet backings, automotive, furniture and bedding, filtration; technical textiles—building and construction, composites, do-it-yourself, horticulture; hygiene; protective clothing; packaging
Describing the year as challenging was Danish nonwovens producer Fibertex, who reported 16% sales growth but admitted that earnings did not follow this growth trend, due largely to external problems, namely raw material increases. According to the company, sales were $222 million compared to $195 million in 2005 while earnings declined to $5.5 million.
In addition to raw material price increases, Fibertex’s earnings were negatively impacted by complications associated with bringing a six-meter, state-of-the-art NSC needleloom onstream at its Czech Republic facility. While this problem has been fixed, it did lead to a delay in transferring two older lines from the Czech site, which Fibertex acquired from Vigona in 2004.
“We did face problems in our Czech operation with manufacturing efficiency on an existing line. That has been fixed,” said Michael Meulengracht, who replaced retired Knud Waede Hansen as Fibertex managing director in January.
The Czech operation, acquired from Vigona in 2004, currently includes thermal bonding, drylaid and needlepunching machines. Fibertex is reconfiguring an older drylaid line at the site to offer a new technology and will then decide if it’s wise to add news lines there as well.
Fibertex purchased the Czech operation in 2004, partly to better target Central and Eastern Europe and partly to increase its role in technical markets. Currently, a big portion of the output in the Czech Republic serves the automotives market, where there is always pressure to keep costs down. However, Fibertex is benefiting from the location of this operation as many of the Tier One automotive suppliers have operations in the Eastern Block countries. Other markets being served by Fibertex’s technical division include furniture and bedding, filtration and geotextiles.
In addition to the Vigona site, Fibertex runs a needlepunch operation from its Aalborg, Denmark facility to target technical markets. As a whole, Fibertex’s technical division increased its sales 9% in 2006 to reach $90 million.
Meanwhile, Fibertex’s hygiene business—which grew sales 20% to $135.5 million last year—continues to benefit from new investment, the latest of which, a new Reifenhauser line, began operating at Fibertex’s Aalborg headquarters in January. The new line, the facility’s third spunmelt machine, increased capacity there by 50% and is already contributing to the bottom line, according to Mr. Meulengracht.
“Hygiene still performs well for us,” he said. “It’s all about providing a solid package there, running at an acceptable capacity utilization.”
In addition to three lines in Aalborg, Fibertex operates two Reifenhauser spunmelt lines serving the hygiene market at its Malaysian facility near Kaula Lumpur. These lines serve the Asia-Pacific regions as well as Europe. “Asia-Pacific is growing significantly because the developing countries are full of people who are improving their lifestyles,” Mr. Meulengracht said. “There are 100 million people in China who have enough money for hygiene products.”
Also benefiting Fibertex’s Asian-Pacific business is lack of local competition. Products being made by Asian companies continue to be sub-quality compared to Western competitors.
During the past decade, much of Fibertex’s growth has come from new investments, including the construction of lines as well as investment of new businesses. Currently, no new capacity is planned but executives insist the company is still in growth mode. “There are a lot of ways to achieve growth,” said Mr. Meulengracht. “It can be joint ventures, capacity expansions, acquisitions, etc.”