01.01.07
Location: Dallas, TX
Sales: $1.25 billion
Description: Key Personnel
Thomas Falk, chairman and CEO; Bob Stargel, vice president, Nonwovens Operations and Technology; Mark Foreste, vice president, Partnership Products
Plants
Corinth, MS; Balfour, NC; Lexington, NC; LaGrange, GA; Neenah, WI
ISO Status
Certification achieved in Lexington, NC and LaGrange, GA; other facilities in progress
Processes
Spunbond, meltblown, SMS, BCW, hydroentangled and Coform
Brand Names
Blockit protective fabric, Cyclean filtration media, Dustop protective fabric, Evolution 4 protective fabric, Intrepid filtration media, Noah protective fabric, Powerloft filtration media and QuieTech acoustic media
Major Markets
Filtration, acoustics, hygiene, industrial, medical, packaging, protective, sorbents, textile linings and wet wipes
Kimberly-Clark, the world’s third leading nonwoven roll goods producer, reported continued growth in its Partnership Products’ converted and nonwoven roll goods external businesses. Partnership Products, which focuses on Business to Business needs met or exceeded its goals in its targeted segments in 2006, attributing its success to two key factors—organic growth and new product launches.
“We had a good year,” reported J.C. Sneyd, director of marketing and sales for K-C’s Partnership Products business. “2006 was quite satisfactory with our focused sectors growing at or above the industry growth rate. We are fortunate to have an excellent customer base that continues to grow and promote our growth.”
At the corporate level, K-C saw steady sales growth of more than 5% in 2006, with sales reaching $16.7 billion as a result of a 2% rise in sales volumes. Meanwhile, operating profit hit $2.1 billion. The benefits of top-line growth, along with cost savings of about $265 million offset inflation in key cost components, totaling approximately $385 million.
The percentage of K-C’s total nonwoven capacity targeting external markets remains at about 15% while 85% is used internally to supply the company’s huge consumer and medical products businesses and leading brands such as Huggies disposable diapers and training pants, Depend adult incontinence products and Kotex sanitary protection items. The ratio of K-C’s nonwovens usage to internal/external business areas has been fairly steady for quite a few years in spite of capacity increases and the fact that its machines are kept evergreen.
Commenting on the state of the global nonwovens industry, Mr. Sneyd observed that the market is somewhat in a state of flux due to recent merger and acquisition activity. “We have seen several instances where older or obsolete capacity is being retired by other companies.” He added that K-C’s strategy continues to be a strong focus on unique products, an area where the company is still seeing significant activity. “We tend to shy away from commodity products,” he said.
Another advantage for K-C is its technology portfolio. “For instance,” explained Mr. Sneyd, “while meltblowing technology has been around for many years, our meltblown assets, which are not your typical, off-the-shelf process, have led to the incorporation of roll goods into unique converted product solutions in our Partnership Products business.”
K-C’s nonwovens business unit—formerly known as the Nonwoven Fabrics business—changed its name last year to Kimberly Clark Partnership Products. The new name is a reflection of the company’s capabilities outside of the roll goods arena. “We not only supply roll goods, we are also active in providing converted solutions for our customers.” Mr. Sneyd explained that K-C converts some of its own products and outsources some converting projects as well.
As for K-C’s diaper business, in 2006 the company launched two new products, Huggies Supreme Gentle Care and Huggies Supreme Natural Fit diapers. These innovative products, launched simultaneously in North America and Europe in the third quarter of last year, increased volume and marketshare for K-C's diaper business in both geographies.
Beyond new product launches, K-C intends to further improve its competitive position through a previously announced cost reduction plan, which is part of a comprehensive, multi-year effort announced in July 2005. The plan calls for streamlining manufacturing and administrative operations primarily in North America and Europe, with expected annual savings of at least $350 million by 2009. With this savings, the company plans to reinvest in targeted growth opportunities, improve key capabilities as well as support margin improvement.
Part of this strategy was the phasing out of half the remaining production at its Lakeview diaper plant in Menasha, WI by the end of August. The final closure is slated for the middle of December. About 280 people still work at the Lakeview plant, which once employed as many as 500. K-C announced in March 2006 that it would close the plant, which manufactures Huggies diapers, by the end of 2007 as part of a consolidation of its American baby and childcare operations into three facilities in Beach Island, SC; Paris, TX; and Ogden, UT.
Another key development this year at K-C is the creation of a new Global Marketing organization, which stems from ongoing efforts to extend its brand-building capabilities, accelerate growth and product innovation and improve the effectiveness of its marketing resources. As part of the new structure, three senior executives with extensive consumer products and marketing experience have joined K-C in new roles.
Similar to other nonwovens producers, K-C is keeping a close eye on environmental concerns and in 2006 launched Vision 2010, the third, five-year phase of a 15-year sustainability effort that has yielded significant reductions in energy consumption, fresh water usage, manufacturing waste landfilled and air emissions benefiting the environment while reducing the company's operating costs.
Among key achievements over the past year, K-C reduced its energy use by 2%, increased efficiency by approximately 3%, decreased greenhouse gas emissions per ton of production at its manufacturing operations by 2% and increased the use of certified fiber in its products for the fourth consecutive year. Additionally, K-C updated its fiber procurement policy to maximize the use of environmentally responsible wood fiber and provide that K-C will not knowingly use fiber from forest areas requiring protection.
“The environmental and social challenges society will face in the coming decades—from climate change and tighter regulations to growth in developing markets—are real issues that will require changes in behavior, new ways of operating and broader cooperation among individuals, companies and governments,” said Thomas Falk, chairman and CEO. “We are prepared to do our part to meet these challenges.”
Looking toward 2008 and beyond, K-C plans to continue to follow the path that has brought the company success so far. “We continue to keep our assets evergreen,” stated Mr. Sneyd. “We also continue to meet the growing demands of our organic businesses and at the same time support our exploration into new products.”"
Sales: $1.25 billion
Description: Key Personnel
Thomas Falk, chairman and CEO; Bob Stargel, vice president, Nonwovens Operations and Technology; Mark Foreste, vice president, Partnership Products
Plants
Corinth, MS; Balfour, NC; Lexington, NC; LaGrange, GA; Neenah, WI
ISO Status
Certification achieved in Lexington, NC and LaGrange, GA; other facilities in progress
Processes
Spunbond, meltblown, SMS, BCW, hydroentangled and Coform
Brand Names
Blockit protective fabric, Cyclean filtration media, Dustop protective fabric, Evolution 4 protective fabric, Intrepid filtration media, Noah protective fabric, Powerloft filtration media and QuieTech acoustic media
Major Markets
Filtration, acoustics, hygiene, industrial, medical, packaging, protective, sorbents, textile linings and wet wipes
Kimberly-Clark, the world’s third leading nonwoven roll goods producer, reported continued growth in its Partnership Products’ converted and nonwoven roll goods external businesses. Partnership Products, which focuses on Business to Business needs met or exceeded its goals in its targeted segments in 2006, attributing its success to two key factors—organic growth and new product launches.
“We had a good year,” reported J.C. Sneyd, director of marketing and sales for K-C’s Partnership Products business. “2006 was quite satisfactory with our focused sectors growing at or above the industry growth rate. We are fortunate to have an excellent customer base that continues to grow and promote our growth.”
At the corporate level, K-C saw steady sales growth of more than 5% in 2006, with sales reaching $16.7 billion as a result of a 2% rise in sales volumes. Meanwhile, operating profit hit $2.1 billion. The benefits of top-line growth, along with cost savings of about $265 million offset inflation in key cost components, totaling approximately $385 million.
The percentage of K-C’s total nonwoven capacity targeting external markets remains at about 15% while 85% is used internally to supply the company’s huge consumer and medical products businesses and leading brands such as Huggies disposable diapers and training pants, Depend adult incontinence products and Kotex sanitary protection items. The ratio of K-C’s nonwovens usage to internal/external business areas has been fairly steady for quite a few years in spite of capacity increases and the fact that its machines are kept evergreen.
Commenting on the state of the global nonwovens industry, Mr. Sneyd observed that the market is somewhat in a state of flux due to recent merger and acquisition activity. “We have seen several instances where older or obsolete capacity is being retired by other companies.” He added that K-C’s strategy continues to be a strong focus on unique products, an area where the company is still seeing significant activity. “We tend to shy away from commodity products,” he said.
Another advantage for K-C is its technology portfolio. “For instance,” explained Mr. Sneyd, “while meltblowing technology has been around for many years, our meltblown assets, which are not your typical, off-the-shelf process, have led to the incorporation of roll goods into unique converted product solutions in our Partnership Products business.”
K-C’s nonwovens business unit—formerly known as the Nonwoven Fabrics business—changed its name last year to Kimberly Clark Partnership Products. The new name is a reflection of the company’s capabilities outside of the roll goods arena. “We not only supply roll goods, we are also active in providing converted solutions for our customers.” Mr. Sneyd explained that K-C converts some of its own products and outsources some converting projects as well.
As for K-C’s diaper business, in 2006 the company launched two new products, Huggies Supreme Gentle Care and Huggies Supreme Natural Fit diapers. These innovative products, launched simultaneously in North America and Europe in the third quarter of last year, increased volume and marketshare for K-C's diaper business in both geographies.
Beyond new product launches, K-C intends to further improve its competitive position through a previously announced cost reduction plan, which is part of a comprehensive, multi-year effort announced in July 2005. The plan calls for streamlining manufacturing and administrative operations primarily in North America and Europe, with expected annual savings of at least $350 million by 2009. With this savings, the company plans to reinvest in targeted growth opportunities, improve key capabilities as well as support margin improvement.
Part of this strategy was the phasing out of half the remaining production at its Lakeview diaper plant in Menasha, WI by the end of August. The final closure is slated for the middle of December. About 280 people still work at the Lakeview plant, which once employed as many as 500. K-C announced in March 2006 that it would close the plant, which manufactures Huggies diapers, by the end of 2007 as part of a consolidation of its American baby and childcare operations into three facilities in Beach Island, SC; Paris, TX; and Ogden, UT.
Another key development this year at K-C is the creation of a new Global Marketing organization, which stems from ongoing efforts to extend its brand-building capabilities, accelerate growth and product innovation and improve the effectiveness of its marketing resources. As part of the new structure, three senior executives with extensive consumer products and marketing experience have joined K-C in new roles.
Similar to other nonwovens producers, K-C is keeping a close eye on environmental concerns and in 2006 launched Vision 2010, the third, five-year phase of a 15-year sustainability effort that has yielded significant reductions in energy consumption, fresh water usage, manufacturing waste landfilled and air emissions benefiting the environment while reducing the company's operating costs.
Among key achievements over the past year, K-C reduced its energy use by 2%, increased efficiency by approximately 3%, decreased greenhouse gas emissions per ton of production at its manufacturing operations by 2% and increased the use of certified fiber in its products for the fourth consecutive year. Additionally, K-C updated its fiber procurement policy to maximize the use of environmentally responsible wood fiber and provide that K-C will not knowingly use fiber from forest areas requiring protection.
“The environmental and social challenges society will face in the coming decades—from climate change and tighter regulations to growth in developing markets—are real issues that will require changes in behavior, new ways of operating and broader cooperation among individuals, companies and governments,” said Thomas Falk, chairman and CEO. “We are prepared to do our part to meet these challenges.”
Looking toward 2008 and beyond, K-C plans to continue to follow the path that has brought the company success so far. “We continue to keep our assets evergreen,” stated Mr. Sneyd. “We also continue to meet the growing demands of our organic businesses and at the same time support our exploration into new products.”"