09.07.23
Weinheim, Germany
www.freudenberg-pm.com
2022 Nonwovens Sales: $2.9 billion
Performance Materials: $1.65 billion
Filtration Technologies: $712 million
Japan Vilene: $538 million
Key Personnel
Frank Heislitz, CEO; Thomas Herr, CFO; John McNabb, COO
Plants
Africa: 1; Asia: 7; The Americas: 4; Europe: 21
ISO Status
All locations are ISO 9001 and ISO 14001 certified; locations serving the automotive industry are TS 16469 certified; all sites are OHSAS 18001 certified
Processes
Drylaid staple fiber, wetlaid, spunbond, meltblown, needlepunch, thermal bond, chemical bond, water entanglement
Brands
Comfortemp, Colback, Colbonddrain, Enka Solutions, Dr!pstop, Evolon, Lutradur, SoundTex, Vlieseline, Terbond, Texbond, Mehler Texnologies, Filtura
Major Markets
Automotive, apparel, building interiors, building materials, energy, filter media, healthcare, special applications, shoe and leather goods
Reporting strong topline growth in 2022 was Freudenberg Performance Materials. A combination of rebounds in its core markets and the results of previous acquisitions and investments led to more than double-digit top line growth during the year. Earnings, however, were impacted by a number of factors including the European energy crisis, the war in Ukraine and supply chain disruptions at the beginning of the year.
“Things have been much more difficult,” says Frank Heislitz, CEO of Freudenberg Performance Materials. “I have never seen such a situation in my professional life with so many challenges coming all at once.”
During the first half of the year, growth was driven by strong recovery following Covid, particularly in the building construction, filtration and apparel markets. However, toward the end of the year, consumer concerns over inflation and other economic factors contributed to a slowdown in certain markets.
“If you look into the market segments with consumer spending like apparel and construction, these have been challenged by high inflation and other uncertainties,” Heislitz says. “I would say these conditions are global. For sure, there is a lot of competition but the challenges are more being driven by slower demand.”
One area that has remained strong is medical, which typically is resilient against any crisis. In recent years, Freudenberg has focused on its advanced wound care business, which is primarily served from its two U.K. facilities.
“We continue to launch interesting new products so maybe we are stronger than the market,” Heislitz adds.
Products include an elastic variant of its flexible superabsorbers for modern wound dressings. These superabsorbers increase the comfort level for patients as well as enabling longer wear time, thus reducing the frequency of dressing changes. Using a new technology to manufacture the elastic superabsorbers, Freudenberg does not perforate or slit the material, thus achieving a high degree of consistent elasticity. Furthermore, the technology used by Freudenberg bonds the superabsorbent fibers more uniformly with the material, thus enhancing the integrity of this layer in the wound dressing.
Additionally, the M 1714 wound pad component is an example of a sustainable solution that simultaneously delivers on performance. The dressing consists of bio-based fibers and exhibits a smooth wound contact layer. M 1714 has been evaluated for industrial compostability and conforms to ISO 13432. This enables certification of the product biodegradability.
Another bright spot lies in gas diffusion layers for fuel cell technology, a market with high growth dynamics. Particularly in Europe and Asia, the market is growing in commercial vehicles and heavy truck areas. To better serve this market, Freudenberg is adding gas diffusion layer capacity in Weinheim, Germany through a €28 million investment, marking the second investment in this technology this decade. Freudenberg invested €10 million in new capacity, also in Weinheim, in 2020.
“Right now, it’s more on the commercial side,” Heislitz says. “The market for fuel cell passenger cars will pick up later. For now this doesn’t matter because all suppliers are busy industrializing their processes. This will help to make fuel cell technology more attractive for passenger cars.”
In other investment news, Freudenberg has completed work on a new needlepunch line at the Slovenian facility acquired from Filc, in response to increased demand. Additionally, Freudenberg completed work on a new EnkaMat production line at its Changzhou, China site. The investment increases capacity and complements existing EnkaMat sites in Obernburg, Germany and Asheville, NC.
The EnkaMat technology are three-dimensional Matrixes that prevent restriction. Investment in China will allow Freudenberg to develop the local market. “These are the types of materials that are difficult to slit because they are too bulky and they contain too much air.,” Heislitz adds.
Both of these investments build on recent acquisitions at Freudenberg. The company acquired Filc in early 2021, an action that has not only made the company stronger in needlepunch technology but also broadened its product lineup in roofing and construction and made it more competitive in automotives. Meanwhile, the EnkaMat and Colback technologies were acquired from Low & Bonar. Enka is a polymer 3D entangled mat made of specific polymers that are thermally bonded where the filament meet. It provides efficient erosion protection. Colback is a two-step spunbond process solution that is adjacent to the company’s existing spunbond technology, known as Tufts. It allows Freudenberg to be more flexible and individually tailor products to customer specifications.
Within its apparel business, Freudenberg has made a number of adjustments in response to global market dynamics. In early 2022, the company began the construction of a competence center for finishing and coating base material for the apparel industry at its site in Sant’Omero, Italy. The site, which houses two lines formerly located in Weinheim, Germany, as well as a third from a shuttered Argentinean site, officially opened in May.
Customers are now benefitting from faster and more flexible order processing of products originating in Europe. The Freudenberg team in Sant’Omero has over 35 years of expertise in the manufacture of high-quality interlinings for menswear: base materials produced at the site are finished and coated to customers’ specifications. With the new competence center, the facility is now focusing on coating and finishing all nonwoven, woven and weft apparel interlinings in Freudenberg’s portfolio.
Prior to this investment, the bulk of interlinings were coated and finished in Weinheim, Germany, which will continue to be Freudenberg’s headquarters for the production of interlining base materials.
Meanwhile in Asia, Freudenberg has established an Apparel Technical Solution Center – Asia at its Nantong factory to expand its innovation capabilities. With floor space of 900 square meters, the new center offers unparalleled technical expertise and innovations to apparel customers from nearly all apparel segments in Asia and around the world.
Recent innovations within the apparel segment include 37xx PES—a revolutionary range of interlinings that offer the classic feel of cotton with the modern features of enhanced durability, increased yields and low-temperature fusing. With a 100% PES base and special finish, these OEKO-TEX STANDARD 100 Class I certified products open new possibilities for the business and smart casual segments, which is supplied from the ATSC. Additionally, earlier this year Freudenberg expanded its Super Elastic Interlinings range with the introduction of the apparel industry’s first 100% recycled thermoplastic elastomers (rTPE) base content interlining series. In recognition of the growing use of elastic interlinings in apparel and building on the principles of Freudenberg Performance Materials´ Apparel’s House of Sustainability, these new products speak to Freudenberg’s ongoing dedication to high-quality and sustainable solutions, with responsible products in every season.
Freudenberg Performance Materials’ Apparel’s House of Sustainability is a major initiative designed to assist customers in enhancing the sustainability of their garment products and building towards a more sustainable future. Offering the latest innovations and solutions from its House of Sustainability that combine functional and environmental benefits, Freudenberg supports sustainable garments for people and the planet through all manufacturing seasons.
“Apparel continues to be an important market. It is one of our biggest divisions and we believe with the combination of optimizing the production footprint and new innovations in the market—particularly in the outdoor market—we believe that business will remain an important element,” says Heislitz.
Even as it adjusts its manufacturing assets to meet the changing needs of traditional apparel markets, Freudenberg has increased its focus on other areas of the apparel market like high performance outdoor items and sportswear. Its comfortemp Lyocell padding, which meets all requirements for high performance thermal insulation for sports and outdoor padding, is the first fully biodegradable padding made from sustainably produced cellulose. In 2020, Freudenberg expanded capacity of its comfortemp technology with a new line in Suzhou, China.
Within filtration, the company’s transition into a filter media supplier to external customers has influenced the creation of a new brand name that encompasses its full product range. Earlier this year, Freudenberg announced Filtura, a new brand for its filter media products replacing the Colback, Enka solutions, Evolon, Karbofil and Lutradur media brands. Filtura is expected to bring greater clarity to the filter media market and enable Freudenberg Performance Materials to extend its position in this market.
“The new brand reflects Freudenberg Performance Materials’ new position as a filter media supplier to the external world of Freudenberg, which occurred following the dual acquisitions of Low and Bonar and Filc,” Heislitz says. “In the past we mainly supplied Freudenberg Filtration Technologies but now we have a lot of external customers. We want to strengthen it by also building up a new brand in the market.”
Another important launch at Freudenberg this year was the introduction of its next generation range of sustainable carpet backing products for the flooring industry. Next generation sustainable backings support customers in their transition towards producing more sustainable carpets. The range is introduced as Colback ECO and Lutradur ECO and is part of the Freudenberg portfolio of high-performance spunbond nonwoven technical textiles.
www.freudenberg-pm.com
2022 Nonwovens Sales: $2.9 billion
Performance Materials: $1.65 billion
Filtration Technologies: $712 million
Japan Vilene: $538 million
Key Personnel
Frank Heislitz, CEO; Thomas Herr, CFO; John McNabb, COO
Plants
Africa: 1; Asia: 7; The Americas: 4; Europe: 21
ISO Status
All locations are ISO 9001 and ISO 14001 certified; locations serving the automotive industry are TS 16469 certified; all sites are OHSAS 18001 certified
Processes
Drylaid staple fiber, wetlaid, spunbond, meltblown, needlepunch, thermal bond, chemical bond, water entanglement
Brands
Comfortemp, Colback, Colbonddrain, Enka Solutions, Dr!pstop, Evolon, Lutradur, SoundTex, Vlieseline, Terbond, Texbond, Mehler Texnologies, Filtura
Major Markets
Automotive, apparel, building interiors, building materials, energy, filter media, healthcare, special applications, shoe and leather goods
Reporting strong topline growth in 2022 was Freudenberg Performance Materials. A combination of rebounds in its core markets and the results of previous acquisitions and investments led to more than double-digit top line growth during the year. Earnings, however, were impacted by a number of factors including the European energy crisis, the war in Ukraine and supply chain disruptions at the beginning of the year.
“Things have been much more difficult,” says Frank Heislitz, CEO of Freudenberg Performance Materials. “I have never seen such a situation in my professional life with so many challenges coming all at once.”
During the first half of the year, growth was driven by strong recovery following Covid, particularly in the building construction, filtration and apparel markets. However, toward the end of the year, consumer concerns over inflation and other economic factors contributed to a slowdown in certain markets.
“If you look into the market segments with consumer spending like apparel and construction, these have been challenged by high inflation and other uncertainties,” Heislitz says. “I would say these conditions are global. For sure, there is a lot of competition but the challenges are more being driven by slower demand.”
One area that has remained strong is medical, which typically is resilient against any crisis. In recent years, Freudenberg has focused on its advanced wound care business, which is primarily served from its two U.K. facilities.
“We continue to launch interesting new products so maybe we are stronger than the market,” Heislitz adds.
Products include an elastic variant of its flexible superabsorbers for modern wound dressings. These superabsorbers increase the comfort level for patients as well as enabling longer wear time, thus reducing the frequency of dressing changes. Using a new technology to manufacture the elastic superabsorbers, Freudenberg does not perforate or slit the material, thus achieving a high degree of consistent elasticity. Furthermore, the technology used by Freudenberg bonds the superabsorbent fibers more uniformly with the material, thus enhancing the integrity of this layer in the wound dressing.
Additionally, the M 1714 wound pad component is an example of a sustainable solution that simultaneously delivers on performance. The dressing consists of bio-based fibers and exhibits a smooth wound contact layer. M 1714 has been evaluated for industrial compostability and conforms to ISO 13432. This enables certification of the product biodegradability.
Another bright spot lies in gas diffusion layers for fuel cell technology, a market with high growth dynamics. Particularly in Europe and Asia, the market is growing in commercial vehicles and heavy truck areas. To better serve this market, Freudenberg is adding gas diffusion layer capacity in Weinheim, Germany through a €28 million investment, marking the second investment in this technology this decade. Freudenberg invested €10 million in new capacity, also in Weinheim, in 2020.
“Right now, it’s more on the commercial side,” Heislitz says. “The market for fuel cell passenger cars will pick up later. For now this doesn’t matter because all suppliers are busy industrializing their processes. This will help to make fuel cell technology more attractive for passenger cars.”
In other investment news, Freudenberg has completed work on a new needlepunch line at the Slovenian facility acquired from Filc, in response to increased demand. Additionally, Freudenberg completed work on a new EnkaMat production line at its Changzhou, China site. The investment increases capacity and complements existing EnkaMat sites in Obernburg, Germany and Asheville, NC.
The EnkaMat technology are three-dimensional Matrixes that prevent restriction. Investment in China will allow Freudenberg to develop the local market. “These are the types of materials that are difficult to slit because they are too bulky and they contain too much air.,” Heislitz adds.
Both of these investments build on recent acquisitions at Freudenberg. The company acquired Filc in early 2021, an action that has not only made the company stronger in needlepunch technology but also broadened its product lineup in roofing and construction and made it more competitive in automotives. Meanwhile, the EnkaMat and Colback technologies were acquired from Low & Bonar. Enka is a polymer 3D entangled mat made of specific polymers that are thermally bonded where the filament meet. It provides efficient erosion protection. Colback is a two-step spunbond process solution that is adjacent to the company’s existing spunbond technology, known as Tufts. It allows Freudenberg to be more flexible and individually tailor products to customer specifications.
Within its apparel business, Freudenberg has made a number of adjustments in response to global market dynamics. In early 2022, the company began the construction of a competence center for finishing and coating base material for the apparel industry at its site in Sant’Omero, Italy. The site, which houses two lines formerly located in Weinheim, Germany, as well as a third from a shuttered Argentinean site, officially opened in May.
Customers are now benefitting from faster and more flexible order processing of products originating in Europe. The Freudenberg team in Sant’Omero has over 35 years of expertise in the manufacture of high-quality interlinings for menswear: base materials produced at the site are finished and coated to customers’ specifications. With the new competence center, the facility is now focusing on coating and finishing all nonwoven, woven and weft apparel interlinings in Freudenberg’s portfolio.
Prior to this investment, the bulk of interlinings were coated and finished in Weinheim, Germany, which will continue to be Freudenberg’s headquarters for the production of interlining base materials.
Meanwhile in Asia, Freudenberg has established an Apparel Technical Solution Center – Asia at its Nantong factory to expand its innovation capabilities. With floor space of 900 square meters, the new center offers unparalleled technical expertise and innovations to apparel customers from nearly all apparel segments in Asia and around the world.
Recent innovations within the apparel segment include 37xx PES—a revolutionary range of interlinings that offer the classic feel of cotton with the modern features of enhanced durability, increased yields and low-temperature fusing. With a 100% PES base and special finish, these OEKO-TEX STANDARD 100 Class I certified products open new possibilities for the business and smart casual segments, which is supplied from the ATSC. Additionally, earlier this year Freudenberg expanded its Super Elastic Interlinings range with the introduction of the apparel industry’s first 100% recycled thermoplastic elastomers (rTPE) base content interlining series. In recognition of the growing use of elastic interlinings in apparel and building on the principles of Freudenberg Performance Materials´ Apparel’s House of Sustainability, these new products speak to Freudenberg’s ongoing dedication to high-quality and sustainable solutions, with responsible products in every season.
Freudenberg Performance Materials’ Apparel’s House of Sustainability is a major initiative designed to assist customers in enhancing the sustainability of their garment products and building towards a more sustainable future. Offering the latest innovations and solutions from its House of Sustainability that combine functional and environmental benefits, Freudenberg supports sustainable garments for people and the planet through all manufacturing seasons.
“Apparel continues to be an important market. It is one of our biggest divisions and we believe with the combination of optimizing the production footprint and new innovations in the market—particularly in the outdoor market—we believe that business will remain an important element,” says Heislitz.
Even as it adjusts its manufacturing assets to meet the changing needs of traditional apparel markets, Freudenberg has increased its focus on other areas of the apparel market like high performance outdoor items and sportswear. Its comfortemp Lyocell padding, which meets all requirements for high performance thermal insulation for sports and outdoor padding, is the first fully biodegradable padding made from sustainably produced cellulose. In 2020, Freudenberg expanded capacity of its comfortemp technology with a new line in Suzhou, China.
Within filtration, the company’s transition into a filter media supplier to external customers has influenced the creation of a new brand name that encompasses its full product range. Earlier this year, Freudenberg announced Filtura, a new brand for its filter media products replacing the Colback, Enka solutions, Evolon, Karbofil and Lutradur media brands. Filtura is expected to bring greater clarity to the filter media market and enable Freudenberg Performance Materials to extend its position in this market.
“The new brand reflects Freudenberg Performance Materials’ new position as a filter media supplier to the external world of Freudenberg, which occurred following the dual acquisitions of Low and Bonar and Filc,” Heislitz says. “In the past we mainly supplied Freudenberg Filtration Technologies but now we have a lot of external customers. We want to strengthen it by also building up a new brand in the market.”
Another important launch at Freudenberg this year was the introduction of its next generation range of sustainable carpet backing products for the flooring industry. Next generation sustainable backings support customers in their transition towards producing more sustainable carpets. The range is introduced as Colback ECO and Lutradur ECO and is part of the Freudenberg portfolio of high-performance spunbond nonwoven technical textiles.