01.01.10
Location: Tel Aviv, Israel
Sales: $213 million
Description: Key Personnel
Shuki Goldwasser, chairman; Achai Bonneh, vice chairman & CTO; Shlomo Liran, CEO
Plants
Tel Aviv, Israel; Mocksville, NC; Jingmen City, Hubei Province, China; Uzlovaya, Russia
ISO Status
ISO 9002 Certified
Processes
Spunbonded, meltblown, hydroentangled spunlaid
Brand Name
Zebra, Avspun, Avsoft
Major Markets
Hygiene, medical, and construction
Reporting a slight decline in sales was Avgol Nonwovens who attributed this drop solely to decreased resin prices. Tonnage remained the same. “With 93% of the business contracted and 85% of that related to resin prices, fluctuations can really impact the results. What is really more important is looking at profitability,” said company spokesman Dennis Durkin.
In fact, net income increased to $15 million in 2009 as the company continued to implement cost savings measures including streamlining operations, product mix and increasing productivity.
Meanwhile, the Israeli company with plants in Israel, North America, Russia and China continues to invest aggressively in lightweight spunbond nonwovens largely targeted at the global hygiene market. Recent investments include its new plant and new line in Russia in 2008, which quickly sold out and could soon be followed by a companion line, as well as a second Chinese line, which came onstream in June 2010 and is also seeing high customer demand. Avgol executives even hinted that a third line for China chould not be far behind.
“China has been a big success and opportunity and, judging by the demand for our line two capabilities, we are going to be looking to add a third line pretty quickly,” Mr. Durkin said.
Avgol currently operates in China through a joint venture with locally owned Hubei Gold Dragon Nonwoven Fabric Co. The partnership was formed in 2005, and since 2009, Avgol increased its ownership to 80% of the joint venture with full management control. The factory is located 1000 kilometers west of Shanghai.
“Continuing investments will likely take place in Russia, China, South Asia and in North America, where we see growth and matches for our technology and product know-how,” Mr. Durkin said, adding that there most likely won’t be expansion in Israel where the company operates five mature spunbond and SMS lines. “We will continue to grow with our partners around the world who desire to see us penetrate new markets in new regions with high performance products.”
Mr. Durkin added that success in the hygiene market is a balancing act. On one hand, you need to run your lines at maximum capacities to turn a profit; on the other hand, you need to be flexible enough to respond to shifts in market demands.
“To be profitable, you have to run at full capacity and sell out very quickly,” Mr. Durkin said. “At the same time, you have to be somewhat flexible because there can be big spikes in demand.”
Avgol has achieved this balancing act through robust relationships with its customers as well as strong connection to market and product trends. “Times have changed,” Mr. Durkin concluded. “There are no more small customers. People are married a lot longer in this business than they used to be.”
Sales: $213 million
Description: Key Personnel
Shuki Goldwasser, chairman; Achai Bonneh, vice chairman & CTO; Shlomo Liran, CEO
Plants
Tel Aviv, Israel; Mocksville, NC; Jingmen City, Hubei Province, China; Uzlovaya, Russia
ISO Status
ISO 9002 Certified
Processes
Spunbonded, meltblown, hydroentangled spunlaid
Brand Name
Zebra, Avspun, Avsoft
Major Markets
Hygiene, medical, and construction
Reporting a slight decline in sales was Avgol Nonwovens who attributed this drop solely to decreased resin prices. Tonnage remained the same. “With 93% of the business contracted and 85% of that related to resin prices, fluctuations can really impact the results. What is really more important is looking at profitability,” said company spokesman Dennis Durkin.
In fact, net income increased to $15 million in 2009 as the company continued to implement cost savings measures including streamlining operations, product mix and increasing productivity.
Meanwhile, the Israeli company with plants in Israel, North America, Russia and China continues to invest aggressively in lightweight spunbond nonwovens largely targeted at the global hygiene market. Recent investments include its new plant and new line in Russia in 2008, which quickly sold out and could soon be followed by a companion line, as well as a second Chinese line, which came onstream in June 2010 and is also seeing high customer demand. Avgol executives even hinted that a third line for China chould not be far behind.
“China has been a big success and opportunity and, judging by the demand for our line two capabilities, we are going to be looking to add a third line pretty quickly,” Mr. Durkin said.
Avgol currently operates in China through a joint venture with locally owned Hubei Gold Dragon Nonwoven Fabric Co. The partnership was formed in 2005, and since 2009, Avgol increased its ownership to 80% of the joint venture with full management control. The factory is located 1000 kilometers west of Shanghai.
“Continuing investments will likely take place in Russia, China, South Asia and in North America, where we see growth and matches for our technology and product know-how,” Mr. Durkin said, adding that there most likely won’t be expansion in Israel where the company operates five mature spunbond and SMS lines. “We will continue to grow with our partners around the world who desire to see us penetrate new markets in new regions with high performance products.”
Mr. Durkin added that success in the hygiene market is a balancing act. On one hand, you need to run your lines at maximum capacities to turn a profit; on the other hand, you need to be flexible enough to respond to shifts in market demands.
“To be profitable, you have to run at full capacity and sell out very quickly,” Mr. Durkin said. “At the same time, you have to be somewhat flexible because there can be big spikes in demand.”
Avgol has achieved this balancing act through robust relationships with its customers as well as strong connection to market and product trends. “Times have changed,” Mr. Durkin concluded. “There are no more small customers. People are married a lot longer in this business than they used to be.”