01.01.07
Location: Allschwil, Switzerland
Sales: $104 million
Description: Key Personnel
Poul Mikkelsen, chairman; Stephen Landon, president and COO; Michael Norboge, vice president sales & business development; Finn Schoning, group controller; Jack Richardson, vice president USA operations; Alain Herberle, France operations; Francois Wurffel, global production
Plants
Asheville, NC; Soultz, France.
Processes
Hydroentangling (including standard & specialty applications)
Brand names
Rn’S, Lidro, TAU
Major Markets
Wipes, hygiene, packaging, automotive, industrial (various)
Jacob Holm’s large scale dry carded spunlace line continues to ramp up in Asheville, NC, allowing the Switzerland-based company to continue its growth pattern with sales climbing from $91 million in 2005 to $104 million in 2006. Jacob Holm’s U.S. line, which was added in 2005, is being called the widest and fastest dry carded spunlace line in the world by executives who report that the line is already oversold. Growth is continuing into 2007, thanks to major new agreements with leading global and U.S. marketers for personal hygiene and disinfectant wipe applications covering 2007 and 2008.
“Presently 2007, has seen exceptional growth and demand for spunlace in the U.S.,” said company president Stephen Landon.
Additional growth can be attributed to optimization of the company’s two French lines. Volume growth occurred in both existing and new markets.
Meanwhile, earnings growth was described as “satisfactory but below budget” with U.S. volumes increasing significantly from start up and European margins under pressure due to excess market capacity. However, significant operational improvements increased both capacity and capabilities in France and fixed costs were reduced, according to Mr. Landon. “These successes helped to partly offset the margin squeeze from unprecedented and ongoing raw material cost rises. These cost increases together with global supply constraints on cellulosic fibers could impact our short-term progress and put marginal product platforms at risk” he said.
With three spunlace lines, the bulk of Jacob Holm’s output serves the wipes market, which has shown exceptional strength since early 2007, according to the company. New and interesting wipes applications continue to be introduced in Europe, North America, Asia and the Near East as more established wipes programs are holding or gaining volumes, Mr. Landon said.
Also benefiting the spunlace market in general is recent consolidation in both North America and Europe, which Mr. Landon said should provide improved stability in general. “Until recently, there have been a large number of individual spunlace producers especially in Western Europe, all roughly the same size and scale and all seeking sustainable volumes and pricing from a finite marketplace,” he said. “The marketplace will likely see increased emphasis on product and segment development from the lower number of spunlace producers, which will be a good development for all concerned.”
In March 2007, Jacob Holm sold off its Norafin / STA unit after establishing it as a separate company in July 2006. The unit was spun off to perform under the Norafin name and will focus on four specialized segments. Jacob Holm, meanwhile, will continue to retain and expand its business development and research resources supported by its operations in the U.S. and Europe. The focus will remain on diversifying its business beyond consumer wipes through new technology and innovation. Among its proven competencies already are layered products, the inclusion of scrims and nettings, heavy and lightweight specialties, thermal and hydroembossing and the ability to produce higher caliber products at low basis weights, according to Mr. Landon.
“The surface has only been scratched on the full range of applications in which spunlace can perform technically and economically and Jacob Holm is working diligently on finding and developing these new applications.”
Areas being examined by Jacob Holm include commercial construction, disease prevention and specialty packaging and closures, he added.
Sales: $104 million
Description: Key Personnel
Poul Mikkelsen, chairman; Stephen Landon, president and COO; Michael Norboge, vice president sales & business development; Finn Schoning, group controller; Jack Richardson, vice president USA operations; Alain Herberle, France operations; Francois Wurffel, global production
Plants
Asheville, NC; Soultz, France.
Processes
Hydroentangling (including standard & specialty applications)
Brand names
Rn’S, Lidro, TAU
Major Markets
Wipes, hygiene, packaging, automotive, industrial (various)
Jacob Holm’s large scale dry carded spunlace line continues to ramp up in Asheville, NC, allowing the Switzerland-based company to continue its growth pattern with sales climbing from $91 million in 2005 to $104 million in 2006. Jacob Holm’s U.S. line, which was added in 2005, is being called the widest and fastest dry carded spunlace line in the world by executives who report that the line is already oversold. Growth is continuing into 2007, thanks to major new agreements with leading global and U.S. marketers for personal hygiene and disinfectant wipe applications covering 2007 and 2008.
“Presently 2007, has seen exceptional growth and demand for spunlace in the U.S.,” said company president Stephen Landon.
Additional growth can be attributed to optimization of the company’s two French lines. Volume growth occurred in both existing and new markets.
Meanwhile, earnings growth was described as “satisfactory but below budget” with U.S. volumes increasing significantly from start up and European margins under pressure due to excess market capacity. However, significant operational improvements increased both capacity and capabilities in France and fixed costs were reduced, according to Mr. Landon. “These successes helped to partly offset the margin squeeze from unprecedented and ongoing raw material cost rises. These cost increases together with global supply constraints on cellulosic fibers could impact our short-term progress and put marginal product platforms at risk” he said.
With three spunlace lines, the bulk of Jacob Holm’s output serves the wipes market, which has shown exceptional strength since early 2007, according to the company. New and interesting wipes applications continue to be introduced in Europe, North America, Asia and the Near East as more established wipes programs are holding or gaining volumes, Mr. Landon said.
Also benefiting the spunlace market in general is recent consolidation in both North America and Europe, which Mr. Landon said should provide improved stability in general. “Until recently, there have been a large number of individual spunlace producers especially in Western Europe, all roughly the same size and scale and all seeking sustainable volumes and pricing from a finite marketplace,” he said. “The marketplace will likely see increased emphasis on product and segment development from the lower number of spunlace producers, which will be a good development for all concerned.”
In March 2007, Jacob Holm sold off its Norafin / STA unit after establishing it as a separate company in July 2006. The unit was spun off to perform under the Norafin name and will focus on four specialized segments. Jacob Holm, meanwhile, will continue to retain and expand its business development and research resources supported by its operations in the U.S. and Europe. The focus will remain on diversifying its business beyond consumer wipes through new technology and innovation. Among its proven competencies already are layered products, the inclusion of scrims and nettings, heavy and lightweight specialties, thermal and hydroembossing and the ability to produce higher caliber products at low basis weights, according to Mr. Landon.
“The surface has only been scratched on the full range of applications in which spunlace can perform technically and economically and Jacob Holm is working diligently on finding and developing these new applications.”
Areas being examined by Jacob Holm include commercial construction, disease prevention and specialty packaging and closures, he added.