Karen McIntyre, Editor09.11.20
Last month, Fitesa, Brazil’s largest nonwovens producer and one of the biggest suppliers of spunbond materials to the global hygiene market, announced it would purchase Tredegar Personal Care, a major supplier of films and other components to makers of diapers and other absorbent products. The deal will greatly expand Fitesa’s product offerings to its customers. Before the deal, Fitesa had just a small films business it had acquired from Pantex a few years ago.
This merger of suppliers within the hygiene products supply chain is reminiscent of film maker Berry’s acquisition of Avintiv, the world’s largest maker of nonwovens, and its subsequent purchase of films maker Clopay. Both deals shorten the hygiene supply chain and could potentially give hygiene companies the ability to source hybrid film/nonwoven products that could reduce manufacturing steps.
As the world awaits the end of the Coronavirus pandemic and braces itself for the resultant economic fallout, it is certain that consumers will have less disposable income for products like diapers, feminine hygiene items and adult incontinence products. Therefore in order to keep their existing customers coming back and to attract new customers, particularly in developing regions, it will be more important than it has in a long time for companies to keep costs down. Literally, every penny will count when it comes to diaper and san pro item costs, and reducing costs will be a challenge in a market already facing razor thin margins.
During the past few months, nonwovens businesses have thrived as first responders and medical personnel have relied on these products to help save lives. This has led to an aggressive string of investments in new lines, spanning multiple technologies. For the time being, nonwovens manufacturers will certainly see their lines filling up fast as their customers meet the need for PPE shortages and start stockpiling items for future situations. However, these boomtimes will not last forever and working to shorten the supply chain in a market like hygiene, which will always be the largest and most important market for nonwovens, is a smart move. Berry realized it five years ago when it moved into nonwovens and then expanded its films output. Fitesa has proven it knows this through the Pantex and Tredegar deals. Let’s see how long it will take for more companies to follow suit.
As always, we appreciate your comments.
Karen McIntyre
Editor
kmcintyre@rodmanmedia.com
This merger of suppliers within the hygiene products supply chain is reminiscent of film maker Berry’s acquisition of Avintiv, the world’s largest maker of nonwovens, and its subsequent purchase of films maker Clopay. Both deals shorten the hygiene supply chain and could potentially give hygiene companies the ability to source hybrid film/nonwoven products that could reduce manufacturing steps.
As the world awaits the end of the Coronavirus pandemic and braces itself for the resultant economic fallout, it is certain that consumers will have less disposable income for products like diapers, feminine hygiene items and adult incontinence products. Therefore in order to keep their existing customers coming back and to attract new customers, particularly in developing regions, it will be more important than it has in a long time for companies to keep costs down. Literally, every penny will count when it comes to diaper and san pro item costs, and reducing costs will be a challenge in a market already facing razor thin margins.
During the past few months, nonwovens businesses have thrived as first responders and medical personnel have relied on these products to help save lives. This has led to an aggressive string of investments in new lines, spanning multiple technologies. For the time being, nonwovens manufacturers will certainly see their lines filling up fast as their customers meet the need for PPE shortages and start stockpiling items for future situations. However, these boomtimes will not last forever and working to shorten the supply chain in a market like hygiene, which will always be the largest and most important market for nonwovens, is a smart move. Berry realized it five years ago when it moved into nonwovens and then expanded its films output. Fitesa has proven it knows this through the Pantex and Tredegar deals. Let’s see how long it will take for more companies to follow suit.
As always, we appreciate your comments.
Karen McIntyre
Editor
kmcintyre@rodmanmedia.com