01.01.09
Location: TAIPEI, TAIWAN
Sales: $80 Million
Description: Key Personnel
J.C. Tai, chairman and owner; Kirk Hwang, Wang, general manager China operations; Alvin business unit officer
Plants
Taipei, Taiwan; Shanghai, China
Processes
Air through bonding, thermal bonding, needlepunch, spunlace
Brand Names
Carnation brand for hygiene; Co-Fiber for products
Major Markets
Hygiene, industrial, agriculture, geotextiles
Describing 2008 as a good year was company president Kirk Hwang. Sales growth was 25-30%, depending on the exchange rate, thanks to increased demand for spunlaced nonwovens in wipes and airlaid nonwovens in the feminine hygiene and adult incontinence markets. Moving into 2009, the company has seen a decline in the hygiene markets and the company is now working to adjust its annual forecast in the wake of the economic crisis.
One year after completing a plant expansion in Shanghai, China that nearly doubled its capacity there, KNH already has plans in place to construct a new nonwovens production and converting operation in the western part of China. On the nonwovens end, this site will initially make spunlaced and meltblown nonwovens, the two most sought-after technologies in China but eventually airlaid will likely be added to the operation.
“We are very careful when it comes to growth in China,” Mr. Hwang said. “We are taking it one step at a time. In the past 10 years, we have focused all of our efforts on Shanghai, and this is the first time we have a second factory in China.”
On the spunlace side of KNH’s business, growth has largely been driven by the wipes market, mainly in China. The company is currently making about 8000 tons of the material per year and that figure should hit 10,000 by the end of this year as more capacity on its new line is utilized. “We are still using the machine for new product development,” Mr. Hwang added.
Wipes has continued to drive growth. Overall, baby care wipes decreased, but at the same time adult wipes and medical wipes improved. “Part of it is that technology has allowed wipes to be more affordable, particularly in Asia.”
“China has a lot of spunlace but it’s segmented into different quality categories,” Mr. Hwang said. “Only a small percentage of spunlace is actually qualified for good manufacturing practices. The majority of the spunlace is okay for general practice when microbial control is not required but in hygiene, microbial control is required and we see a shortage there.”
Meanwhile, airlaid has continued to thrive thanks to demand for feminine hygiene and adult incontinence items. However, there has been some uncertainty in wood pulp pricing, making business in this area difficult, Mr. Hwang said. This has allowed manufacturers to increase the ratio of superabsorbent polymers in airlaid latex technology.
Also contributing to KNH’s recent growth is the market for meltblown nonwovens, which is used in face masks. These masks have seen heightened demand due to the swine flu epidemic and other infectious disease threats.
“Because of swine flu, the demand for masks has increased many, many times. We have a line running at full capacity to support mask manufacturing,” Mr. Hwang said.
Looking ahead, Mr. Hwang sees expansion both geographically and technologically for KNH. By region, the next big Asian investment, he predicts, will be India, which is currently being served from KNH’s Taiwanese plants. “There could come a time when it makes sense to begin producing nonwovens there,” he explained.
From a technological plant, the company’s next generation product will likely be spunbond nonwovens which will serve as a replacement for air-through bonding applications in the hygiene market. “We will focus on high conductivity of liquid and fluid materials, technology currently used for microfiltration, and apply it o hygiene,” Mr. Hwang said. “This is still in the works, but we think our next generation product for this application will be spunbond.”
With most of its sales in Asia, KNH has been reacting to current market situations but at the same time has been maximizing its current capacity utilization, ensuring cash flow prices and focusing on emerging markets. “It’s kind of a defensive position we are taking but for the long term we continue to invest money for the next generation product.”
Sales: $80 Million
Description: Key Personnel
J.C. Tai, chairman and owner; Kirk Hwang, Wang, general manager China operations; Alvin business unit officer
Plants
Taipei, Taiwan; Shanghai, China
Processes
Air through bonding, thermal bonding, needlepunch, spunlace
Brand Names
Carnation brand for hygiene; Co-Fiber for products
Major Markets
Hygiene, industrial, agriculture, geotextiles
Describing 2008 as a good year was company president Kirk Hwang. Sales growth was 25-30%, depending on the exchange rate, thanks to increased demand for spunlaced nonwovens in wipes and airlaid nonwovens in the feminine hygiene and adult incontinence markets. Moving into 2009, the company has seen a decline in the hygiene markets and the company is now working to adjust its annual forecast in the wake of the economic crisis.
One year after completing a plant expansion in Shanghai, China that nearly doubled its capacity there, KNH already has plans in place to construct a new nonwovens production and converting operation in the western part of China. On the nonwovens end, this site will initially make spunlaced and meltblown nonwovens, the two most sought-after technologies in China but eventually airlaid will likely be added to the operation.
“We are very careful when it comes to growth in China,” Mr. Hwang said. “We are taking it one step at a time. In the past 10 years, we have focused all of our efforts on Shanghai, and this is the first time we have a second factory in China.”
On the spunlace side of KNH’s business, growth has largely been driven by the wipes market, mainly in China. The company is currently making about 8000 tons of the material per year and that figure should hit 10,000 by the end of this year as more capacity on its new line is utilized. “We are still using the machine for new product development,” Mr. Hwang added.
Wipes has continued to drive growth. Overall, baby care wipes decreased, but at the same time adult wipes and medical wipes improved. “Part of it is that technology has allowed wipes to be more affordable, particularly in Asia.”
“China has a lot of spunlace but it’s segmented into different quality categories,” Mr. Hwang said. “Only a small percentage of spunlace is actually qualified for good manufacturing practices. The majority of the spunlace is okay for general practice when microbial control is not required but in hygiene, microbial control is required and we see a shortage there.”
Meanwhile, airlaid has continued to thrive thanks to demand for feminine hygiene and adult incontinence items. However, there has been some uncertainty in wood pulp pricing, making business in this area difficult, Mr. Hwang said. This has allowed manufacturers to increase the ratio of superabsorbent polymers in airlaid latex technology.
Also contributing to KNH’s recent growth is the market for meltblown nonwovens, which is used in face masks. These masks have seen heightened demand due to the swine flu epidemic and other infectious disease threats.
“Because of swine flu, the demand for masks has increased many, many times. We have a line running at full capacity to support mask manufacturing,” Mr. Hwang said.
Looking ahead, Mr. Hwang sees expansion both geographically and technologically for KNH. By region, the next big Asian investment, he predicts, will be India, which is currently being served from KNH’s Taiwanese plants. “There could come a time when it makes sense to begin producing nonwovens there,” he explained.
From a technological plant, the company’s next generation product will likely be spunbond nonwovens which will serve as a replacement for air-through bonding applications in the hygiene market. “We will focus on high conductivity of liquid and fluid materials, technology currently used for microfiltration, and apply it o hygiene,” Mr. Hwang said. “This is still in the works, but we think our next generation product for this application will be spunbond.”
With most of its sales in Asia, KNH has been reacting to current market situations but at the same time has been maximizing its current capacity utilization, ensuring cash flow prices and focusing on emerging markets. “It’s kind of a defensive position we are taking but for the long term we continue to invest money for the next generation product.”