Suominen Corporation
Location: Nakkila, Finland
Sales: $76 Million
Description: Key Personnel
Kari Parviainen, president and chief executive officer; Harri Myllylä, senior vice president, marketing, sales and business development; Esa Palttala, vice president, production and materials management; Margareta Huldén, vice president, product and process development; Arto Kiiskinen, vice president, chief financial officer, finance.
Plant
Nakkila, Finland
ISO Status
ISO 9001, 14001 environmental certification
Processes
Hydroentangled, thermal bonded
Brand Names
Novelin, Fibrella
Major Markets
Wipes, hygiene, medical (wound care)
The year 2001 was characterized by slightly lower sales brought on by a dip in capacity for Suominen Nonwovens (formerly J.W. Suominen Oy), Nakkila, Finland. The company’s sales came in at $76 million compared to $80 million in 2000.
The capacity decrease was brought on by the closure of the company’s older thermal bonding line, but Suominen is currently upgrading its existing thermal bonding and spunlacing lines. “We have been modernizing our spunlace lines and this will boost our capacity in this segment, which is our core business,” explained managing director Kari Parviainen.
The additional spunlaced capacity will mainly target the wipes market, which Mr. Parviainen described as the most important segment for Suominen. Other key markets for the company’s spunlaced business include medical and hygiene applications. Currently about 80% of the company’s output is spunlaced, an area that Suominen helped pioneer 15 years ago. The remaining 20% is in the thermal bonded area, where the main focus of the business is backsheets for hygiene items. Suominen also offers a coextrusion coating option through one of its thermal bonding lines to produce textile-like backsheets for hygiene applications.
The modernization and improvement project was the result of careful observance of the European nonwovens industry, where an oversupply situation and increased competition are key issues, according to Mr. Parviainen. “We have really upgraded and modernized our spunlaced capacity to maintain our leadership position in Europe. We chose not to invest in a new line but to instead improve what we currently have to be competitive,” he explained.
In 2001, the company’s spunlaced business was down slightly because some of its machines were shut down for a portion of the year to be modernized and this temporarily led to lower outputs. Now that the modernization project is complete, Suominen expects its spunlaced sales to take off on the heels of a growing wipes market, both in Europe and North America. “Supply has increased, as has competition,” Mr. Parviainen explained. “But, this modernization has led to increased quality, improved runnability and increased capacity, which should help us move forward.”
Future growth will also be heralded by innovation. Suominen’s research and development team has been concentrating on providing more functionality to spunlaced materials used for wipes. The result is a layered product that contains polypropylene and features excellent liquid release and absorbing properties, according to Mr. Parviainen.
By geography, the majority of Suominen’s sales are currently conducted in Europe but North America and the Far East are also important to the company, which currently operates one plant in Nakkila, Finland.
In terms of raw materials, Mr. Parviainen said that prices were generally stable during the first half of 2001, but prices for oil-based materials such as polypropylene and polyester fell during the second half. Suominen continues to manufacture its own polypropylene in-house and, with the addition of a new production line in 2001, is able to produce all of its polypropylene internally. “This allows us the advantage of tailoring the fiber properties to the needs of our end use products,” Mr. Parviainen explained.
Looking ahead, Suominen will continue to concentrate on increasing sales and improving its profitability. Much of this success is expected to come with the strength of the wipes market in Europe and North America.
“The main area we are focusing on is spunlaced because we are strong in that area,” Mr. Parviainen said. “We are putting more effort there, and that should improve the quantity and the quality. The future will be challenging, but we are ready for it.”
Sales: $76 Million
Description: Key Personnel
Kari Parviainen, president and chief executive officer; Harri Myllylä, senior vice president, marketing, sales and business development; Esa Palttala, vice president, production and materials management; Margareta Huldén, vice president, product and process development; Arto Kiiskinen, vice president, chief financial officer, finance.
Plant
Nakkila, Finland
ISO Status
ISO 9001, 14001 environmental certification
Processes
Hydroentangled, thermal bonded
Brand Names
Novelin, Fibrella
Major Markets
Wipes, hygiene, medical (wound care)
The year 2001 was characterized by slightly lower sales brought on by a dip in capacity for Suominen Nonwovens (formerly J.W. Suominen Oy), Nakkila, Finland. The company’s sales came in at $76 million compared to $80 million in 2000.
The capacity decrease was brought on by the closure of the company’s older thermal bonding line, but Suominen is currently upgrading its existing thermal bonding and spunlacing lines. “We have been modernizing our spunlace lines and this will boost our capacity in this segment, which is our core business,” explained managing director Kari Parviainen.
The additional spunlaced capacity will mainly target the wipes market, which Mr. Parviainen described as the most important segment for Suominen. Other key markets for the company’s spunlaced business include medical and hygiene applications. Currently about 80% of the company’s output is spunlaced, an area that Suominen helped pioneer 15 years ago. The remaining 20% is in the thermal bonded area, where the main focus of the business is backsheets for hygiene items. Suominen also offers a coextrusion coating option through one of its thermal bonding lines to produce textile-like backsheets for hygiene applications.
The modernization and improvement project was the result of careful observance of the European nonwovens industry, where an oversupply situation and increased competition are key issues, according to Mr. Parviainen. “We have really upgraded and modernized our spunlaced capacity to maintain our leadership position in Europe. We chose not to invest in a new line but to instead improve what we currently have to be competitive,” he explained.
In 2001, the company’s spunlaced business was down slightly because some of its machines were shut down for a portion of the year to be modernized and this temporarily led to lower outputs. Now that the modernization project is complete, Suominen expects its spunlaced sales to take off on the heels of a growing wipes market, both in Europe and North America. “Supply has increased, as has competition,” Mr. Parviainen explained. “But, this modernization has led to increased quality, improved runnability and increased capacity, which should help us move forward.”
Future growth will also be heralded by innovation. Suominen’s research and development team has been concentrating on providing more functionality to spunlaced materials used for wipes. The result is a layered product that contains polypropylene and features excellent liquid release and absorbing properties, according to Mr. Parviainen.
By geography, the majority of Suominen’s sales are currently conducted in Europe but North America and the Far East are also important to the company, which currently operates one plant in Nakkila, Finland.
In terms of raw materials, Mr. Parviainen said that prices were generally stable during the first half of 2001, but prices for oil-based materials such as polypropylene and polyester fell during the second half. Suominen continues to manufacture its own polypropylene in-house and, with the addition of a new production line in 2001, is able to produce all of its polypropylene internally. “This allows us the advantage of tailoring the fiber properties to the needs of our end use products,” Mr. Parviainen explained.
Looking ahead, Suominen will continue to concentrate on increasing sales and improving its profitability. Much of this success is expected to come with the strength of the wipes market in Europe and North America.
“The main area we are focusing on is spunlaced because we are strong in that area,” Mr. Parviainen said. “We are putting more effort there, and that should improve the quantity and the quality. The future will be challenging, but we are ready for it.”
Location: Nakkila, Finland
Sales: $84 Million
Description: Key Personnel
Suominen Corporation: Heikki Bergholm, president and CEO, Harri Myllylä, senior vice president, Esa Palttala, vice president, Nonwovens; Juha Henttonen, vice president, Flexible Packaging and Webbing products; Margareta Huldén, vice president, products and process development; Arto Kiiskinen, vice president, chief financial officer of finance, Suominen Nonwovens: Teppo Lainio, production director, Kari Granfors, sales director
Plant
Nakkila, Finland
ISO Status
ISO 9001, 14001 environmental certification
Processes
Hydroentangled, thermal bonded
Brand Names
Novelin, Fibrella
Major Markets
Wipes, hygiene, medical
A 5% sales increase and a 15% earnings jump added up to a successful year for Nakkila, Finland-based Suominen Nonwovens. Roll goods sales were $84 million million compared to $76 million million last year. Operating profit was approximately $11.5 million.
These promising results, which were achieved despite fluctuating pricing levels and increased competition, were mainly due to increased efficiencies as well as a capacity upgrade program by which the company’s existing production lines, in both the spunlaced and thermal bonded segments, were upgraded. “Thanks to modifications, product quality rose, runnability of the lines improved and capacity increased,” explained Esa Palttala, vice president of Suominen Corporation, responsible for nonwovens.
The plan to upgrade the company’s four spunlaced lines and four thermal bonded lines was begun in 2001 and is expected to be complete sometime this year. This modernization project was chosen over a plan to install a full-fledged production line. Executives felt that, while some additional capacity was needed, a full line would bring Suominen into an overcapacity situation.
Currently about 80% of nonwovens output is spunlaced where main markets include wipes, healthcare and medical. Of particular interest to this portion of the business has been honing the technology to meet the needs of the market. “We are continuously developing new products to meet customers needs,” Mr. Palttala explained. “Research and development is extremely important to differentiate yourself in this market.”
While a great deal of spunlaced capacity is currently coming onstream in Europe, increased demand is meeting this capacity. Much of this demand continues to be caused by a proliferation of wiping products in Europe and around the world. “Baby wipes, the segment that began this boom, has leveled off, but now newer segments are growing like personal care, home care and industrial wiping throughout Europe, North America and Southeast Asia,” Mr. Palttala added.
The remaining 20% of Suominen’s output is thermal bonding, although this technology was reduced somewhat in 2001 when an older line was closed. Some of this capacity was replaced, however, through the aforementioned modernization program. This market has lately been characterized by competition from spunbonded materials, particularly in topsheets for hygiene items. Suominen has been examining niche areas such as feminine hygiene and adult incontinence for these products to recoup some of its losses.
Suominen’s total nonwovens output is currently produced at its plant in Nakkila, Finland. While further expansion plans have not been made, executives have admitted that it would make sense to expand outside of Finland in the future. In terms of geographical penetration, the majority of sales are conducted within Europe but other important markets include the U.S. and Japan.
For now the company will continue to focus on aligning its new business organization, which was begun in March 2003. As a corporation, Suominen is now comprised of three major areas, nonwovens, flexible packaging and webbing products. Each is responsible for its own operation but supported by common product and process development, purchasing, logistics and financial performance. “Suominen’s operations are based on a lean organization,” Mr. Palttala explained. “By lean, we mean that Suominen seeks to minimize purely administrative functions. Management must take place close to the actions on a level of everyday operations.”
Currently the nonwovens segment is the largest of the three areas, comprising more than half of sales. Suominen will continue to focus on its core areas of wipes, health care and medical applications, to continue growth, particularly in Europe.
Sales: $84 Million
Description: Key Personnel
Suominen Corporation: Heikki Bergholm, president and CEO, Harri Myllylä, senior vice president, Esa Palttala, vice president, Nonwovens; Juha Henttonen, vice president, Flexible Packaging and Webbing products; Margareta Huldén, vice president, products and process development; Arto Kiiskinen, vice president, chief financial officer of finance, Suominen Nonwovens: Teppo Lainio, production director, Kari Granfors, sales director
Plant
Nakkila, Finland
ISO Status
ISO 9001, 14001 environmental certification
Processes
Hydroentangled, thermal bonded
Brand Names
Novelin, Fibrella
Major Markets
Wipes, hygiene, medical
A 5% sales increase and a 15% earnings jump added up to a successful year for Nakkila, Finland-based Suominen Nonwovens. Roll goods sales were $84 million million compared to $76 million million last year. Operating profit was approximately $11.5 million.
These promising results, which were achieved despite fluctuating pricing levels and increased competition, were mainly due to increased efficiencies as well as a capacity upgrade program by which the company’s existing production lines, in both the spunlaced and thermal bonded segments, were upgraded. “Thanks to modifications, product quality rose, runnability of the lines improved and capacity increased,” explained Esa Palttala, vice president of Suominen Corporation, responsible for nonwovens.
The plan to upgrade the company’s four spunlaced lines and four thermal bonded lines was begun in 2001 and is expected to be complete sometime this year. This modernization project was chosen over a plan to install a full-fledged production line. Executives felt that, while some additional capacity was needed, a full line would bring Suominen into an overcapacity situation.
Currently about 80% of nonwovens output is spunlaced where main markets include wipes, healthcare and medical. Of particular interest to this portion of the business has been honing the technology to meet the needs of the market. “We are continuously developing new products to meet customers needs,” Mr. Palttala explained. “Research and development is extremely important to differentiate yourself in this market.”
While a great deal of spunlaced capacity is currently coming onstream in Europe, increased demand is meeting this capacity. Much of this demand continues to be caused by a proliferation of wiping products in Europe and around the world. “Baby wipes, the segment that began this boom, has leveled off, but now newer segments are growing like personal care, home care and industrial wiping throughout Europe, North America and Southeast Asia,” Mr. Palttala added.
The remaining 20% of Suominen’s output is thermal bonding, although this technology was reduced somewhat in 2001 when an older line was closed. Some of this capacity was replaced, however, through the aforementioned modernization program. This market has lately been characterized by competition from spunbonded materials, particularly in topsheets for hygiene items. Suominen has been examining niche areas such as feminine hygiene and adult incontinence for these products to recoup some of its losses.
Suominen’s total nonwovens output is currently produced at its plant in Nakkila, Finland. While further expansion plans have not been made, executives have admitted that it would make sense to expand outside of Finland in the future. In terms of geographical penetration, the majority of sales are conducted within Europe but other important markets include the U.S. and Japan.
For now the company will continue to focus on aligning its new business organization, which was begun in March 2003. As a corporation, Suominen is now comprised of three major areas, nonwovens, flexible packaging and webbing products. Each is responsible for its own operation but supported by common product and process development, purchasing, logistics and financial performance. “Suominen’s operations are based on a lean organization,” Mr. Palttala explained. “By lean, we mean that Suominen seeks to minimize purely administrative functions. Management must take place close to the actions on a level of everyday operations.”
Currently the nonwovens segment is the largest of the three areas, comprising more than half of sales. Suominen will continue to focus on its core areas of wipes, health care and medical applications, to continue growth, particularly in Europe.
Location: Nakkila, Finland
Sales: $87.5 Million
Description: Key Personnel
Suominen Corporation: Heikki Bergholm, president and CEO, Harri Myllylä, senior vice president, Esa Palttala, vice president, Nonwovens; Juha Henttonen, vice president, Flexible Packaging and Webbing products, Margareta Huldén, vice president, products and process development; Arto Kiiskinen, vice president, chief financial officer, finance.
Suominen Nonwovens: Teppo Lainio, production director, Kari Granfors, sales director
Plant
Nakkila, Finland
ISO Status
ISO 9001, 14001 environmental certification
Processes
Hydroentangled, thermal bonded
Brand Names
Novelin, Fibrella
Major Markets
Wipes, hygiene, medical
A 13% drop in 2003 nonwovens sales for Suominen Nonwovens can reportedly be blamed on price competition in the market for spunlaced nonwovens. While demand for these products, mainly from the European wet wipes market, continued to grow, new players lessened Suominen’s marketshare. Additionally, sales of thermal bonded nonwovens for the hygiene and healthcare markets declined.
This lower capacity utilization across Suominen’s production lines in Nakkila, Finland led to uneven production loads for a part of the year, which ultimately impacted profits. This situation, however, was resolved by the end of the year.
Still, for the first six months of 2004, nonwovens sales at Suominen continued their decline due to weak pricing. Net sales dropped 4% to E37.9 million. These lower costs could not offset increased sales volumes of hydroentangled wiping products caused U.S. gains and substantial increase in the sales volumes of hygiene and healthcare products.
In October 2003, Suominen acquired Dutch wet wipes converter Codi International, the third largest wipes manufacturer in Europe. This acquisition has allowed Suominen to move forward with its strategy of wet wipes manufacturing, an area in which it previously supplied nonwoven roll goods. The Codi acquisition is now an independent business area called Suominen Wet Wipes, which is worth about E60 million. According to Codi’s financial statements for 2002, nets sales were E85.2 million while operating profit was E6.7 million. It has an average staff of 346 employees. Sales are split between baby care products and personal hygiene and household cleaning wipes.
Currently about 80% of nonwovens output is spunlaced and main markets include wipes, healthcare and medical.
The remaining 20% of Suominen’s output is thermal bonding, although its capacity was reduced somewhat in 2001 when an older line was closed. Some of this capacity was recouped through the aforementioned modernization program. This market has lately been characterized by competition from spunbonded materials, particularly in topsheets for hygiene items. Suominen has been examining niche areas such as feminine hygiene and adult incontinence to regain marketshare.
For now, the company will continue to focus on aligning its new business organization, which began with the Codi Acquisition. As a corporation, Suominen is now comprised of four major areas: Suominen Wet Wipes, Suominen Nonwovens and Suominen Flexible Packaging Group. Webbing Products, formerly its own division, has been integrated into other business operations. Each is responsible for its own operation but supported by common product and process development, purchasing, logistics and financial performance.
Currently the nonwovens segment is the largest of the three areas, comprising more than half of sales. Suominen will continue to focus on its core areas of wipes, health care and medical applications, to continue growth, particularly in Europe.
Sales: $87.5 Million
Description: Key Personnel
Suominen Corporation: Heikki Bergholm, president and CEO, Harri Myllylä, senior vice president, Esa Palttala, vice president, Nonwovens; Juha Henttonen, vice president, Flexible Packaging and Webbing products, Margareta Huldén, vice president, products and process development; Arto Kiiskinen, vice president, chief financial officer, finance.
Suominen Nonwovens: Teppo Lainio, production director, Kari Granfors, sales director
Plant
Nakkila, Finland
ISO Status
ISO 9001, 14001 environmental certification
Processes
Hydroentangled, thermal bonded
Brand Names
Novelin, Fibrella
Major Markets
Wipes, hygiene, medical
A 13% drop in 2003 nonwovens sales for Suominen Nonwovens can reportedly be blamed on price competition in the market for spunlaced nonwovens. While demand for these products, mainly from the European wet wipes market, continued to grow, new players lessened Suominen’s marketshare. Additionally, sales of thermal bonded nonwovens for the hygiene and healthcare markets declined.
This lower capacity utilization across Suominen’s production lines in Nakkila, Finland led to uneven production loads for a part of the year, which ultimately impacted profits. This situation, however, was resolved by the end of the year.
Still, for the first six months of 2004, nonwovens sales at Suominen continued their decline due to weak pricing. Net sales dropped 4% to E37.9 million. These lower costs could not offset increased sales volumes of hydroentangled wiping products caused U.S. gains and substantial increase in the sales volumes of hygiene and healthcare products.
In October 2003, Suominen acquired Dutch wet wipes converter Codi International, the third largest wipes manufacturer in Europe. This acquisition has allowed Suominen to move forward with its strategy of wet wipes manufacturing, an area in which it previously supplied nonwoven roll goods. The Codi acquisition is now an independent business area called Suominen Wet Wipes, which is worth about E60 million. According to Codi’s financial statements for 2002, nets sales were E85.2 million while operating profit was E6.7 million. It has an average staff of 346 employees. Sales are split between baby care products and personal hygiene and household cleaning wipes.
Currently about 80% of nonwovens output is spunlaced and main markets include wipes, healthcare and medical.
The remaining 20% of Suominen’s output is thermal bonding, although its capacity was reduced somewhat in 2001 when an older line was closed. Some of this capacity was recouped through the aforementioned modernization program. This market has lately been characterized by competition from spunbonded materials, particularly in topsheets for hygiene items. Suominen has been examining niche areas such as feminine hygiene and adult incontinence to regain marketshare.
For now, the company will continue to focus on aligning its new business organization, which began with the Codi Acquisition. As a corporation, Suominen is now comprised of four major areas: Suominen Wet Wipes, Suominen Nonwovens and Suominen Flexible Packaging Group. Webbing Products, formerly its own division, has been integrated into other business operations. Each is responsible for its own operation but supported by common product and process development, purchasing, logistics and financial performance.
Currently the nonwovens segment is the largest of the three areas, comprising more than half of sales. Suominen will continue to focus on its core areas of wipes, health care and medical applications, to continue growth, particularly in Europe.
Location: Nakkila, Finland
Sales: $93.5 Million
Description: Key Personnel
Suominen Corporation: Heikki Bergholm, president and CEO, Esa Palttala, executive vice president, Wipes and Nonwovens; Juha Henttonen, vice president, Flexible Packaging; Pekka Rautala, vice president, Wet Wipes Business Unit, Arto Kiiskinen, vice president, CFO
Suominen Nonwovens: Sakari Santa-Paavola, commercial director, Teppo Lainio, production director, Margareta Huldén, product and process development director
Plant
Nakkila, Finland
ISO Status
ISO 9001, 14001 environmental certification
Processes
Hydroentangled, thermal bonded
Brand Names
Fibrella, Novelin
Major Markets
Wipes, hygiene, medical
Net sales decreased 3.2% to €75 million last year despite increased volumes for Suominen Nonwovens, Nakkila, Finland. The decrease was blamed largely on cost competitiveness among wipes producers in the European market as well as an upturn in the private label market. This decrease follows a more substantial 13% drop in nonwovens sales reported in 2003, which was blamed on the entry of new players into the company’s core markets.
“Private label markets have been a major part of market growth, but at the same time they have driven prices down,” explained Esa Palttala, executive vice president, Wipes and Nonwovens.
Nearly 80% of Suominen’s nonwovens output centers on spunlaced technology for the wipes market, which has been plagued by increased capacity in Europe particularly in recent months. Despite this, the company was able to grow sales in this segment thanks largely to gains in the U.S. market, which has not yet seen the capacity surge reported in Europe. However, with several new production lines scheduled to come onstream in the short term in the U.S., executives are concerned that overcapacity could become an issue. Furthermore, Suominen, which produces 100% of its nonwovens in Finland, could have trouble competing with U.S.-made goods. Still, the company has nothing to announce concerning U.S. operations at this point, according to Mr. Palttala.
“You have to be sure that you can really make profitable business before this kind of strategic decision,” he said. “We are very pleased with our business in North America and we can serve our customers from overseas for the time being.”
Instead of adding new lines, in fact, Suominen has been relying on a line modernization program to increase its nonwovens output. Just by improving and debottlenecking its four existing spunlaced lines, the company could increase its capacity by up to 20%, according to Mr. Palttala.
Earlier this year, Suominen combined its nonwovens business with its wet wipes unit, which it purchased from Codi International in October 2003. The integration is reportedly intended to allow the company to more effectively use the operational synergies formed by the two units, Wipes and Nonwovens, as well as Flexible Packaging. The wet wipes business will supply wet wipes to international brands and private label customers while the nonwovens business unit will manufacture nonwovens for wipes, hygiene and health care companies. Integration will be furthered by using Suominen’s own nonwoven material and product applications.
This is another step forward in Suominen’s strategy of forward integrating into wipes manufacturing. Last year, the business was hit by reductions in sales volumes and prices, causing sales to drop 15.7% to €81.3 million. According to Mr. Palttala, this loss will be recouped as the company continues to work toward forming more partnerships with retail chains to compensate for some of its branded customers’ loss in marketshare.
“We are trying to improve cost efficiency by concentrating on the number of products we offer,"" Mr. Palttala said. “Wipes are the majority of our business and they have been plagued by slower growth but now we are trying to regain marketshare and achieve future growth in baby, personal and household markets.”
Sales: $93.5 Million
Description: Key Personnel
Suominen Corporation: Heikki Bergholm, president and CEO, Esa Palttala, executive vice president, Wipes and Nonwovens; Juha Henttonen, vice president, Flexible Packaging; Pekka Rautala, vice president, Wet Wipes Business Unit, Arto Kiiskinen, vice president, CFO
Suominen Nonwovens: Sakari Santa-Paavola, commercial director, Teppo Lainio, production director, Margareta Huldén, product and process development director
Plant
Nakkila, Finland
ISO Status
ISO 9001, 14001 environmental certification
Processes
Hydroentangled, thermal bonded
Brand Names
Fibrella, Novelin
Major Markets
Wipes, hygiene, medical
Net sales decreased 3.2% to €75 million last year despite increased volumes for Suominen Nonwovens, Nakkila, Finland. The decrease was blamed largely on cost competitiveness among wipes producers in the European market as well as an upturn in the private label market. This decrease follows a more substantial 13% drop in nonwovens sales reported in 2003, which was blamed on the entry of new players into the company’s core markets.
“Private label markets have been a major part of market growth, but at the same time they have driven prices down,” explained Esa Palttala, executive vice president, Wipes and Nonwovens.
Nearly 80% of Suominen’s nonwovens output centers on spunlaced technology for the wipes market, which has been plagued by increased capacity in Europe particularly in recent months. Despite this, the company was able to grow sales in this segment thanks largely to gains in the U.S. market, which has not yet seen the capacity surge reported in Europe. However, with several new production lines scheduled to come onstream in the short term in the U.S., executives are concerned that overcapacity could become an issue. Furthermore, Suominen, which produces 100% of its nonwovens in Finland, could have trouble competing with U.S.-made goods. Still, the company has nothing to announce concerning U.S. operations at this point, according to Mr. Palttala.
“You have to be sure that you can really make profitable business before this kind of strategic decision,” he said. “We are very pleased with our business in North America and we can serve our customers from overseas for the time being.”
Instead of adding new lines, in fact, Suominen has been relying on a line modernization program to increase its nonwovens output. Just by improving and debottlenecking its four existing spunlaced lines, the company could increase its capacity by up to 20%, according to Mr. Palttala.
Earlier this year, Suominen combined its nonwovens business with its wet wipes unit, which it purchased from Codi International in October 2003. The integration is reportedly intended to allow the company to more effectively use the operational synergies formed by the two units, Wipes and Nonwovens, as well as Flexible Packaging. The wet wipes business will supply wet wipes to international brands and private label customers while the nonwovens business unit will manufacture nonwovens for wipes, hygiene and health care companies. Integration will be furthered by using Suominen’s own nonwoven material and product applications.
This is another step forward in Suominen’s strategy of forward integrating into wipes manufacturing. Last year, the business was hit by reductions in sales volumes and prices, causing sales to drop 15.7% to €81.3 million. According to Mr. Palttala, this loss will be recouped as the company continues to work toward forming more partnerships with retail chains to compensate for some of its branded customers’ loss in marketshare.
“We are trying to improve cost efficiency by concentrating on the number of products we offer,"" Mr. Palttala said. “Wipes are the majority of our business and they have been plagued by slower growth but now we are trying to regain marketshare and achieve future growth in baby, personal and household markets.”
Location: Nakkila, Finland
Sales: $85 Million
Description: Key Personnel
Suominen Corporation: Heikki Bergholm, president and CEO, Esa Palttala, executive vice president, Wipes and Nonwovens; Juha Henttonen, vice president, Flexible Packaging; Pekka Rautala, vice president, Wet Wipes Business Unit, Arto Kiiskinen, vice president, CFO. Suominen Nonwovens: Sakari Santa-Paavola, commercial director, Teppo Lainio, production director, Margareta Huldén, product and process development director
Plant
Nakkila, Finland
ISO Status
ISO 9001, 14001 environmental certification
Processes
Hydroentangled, thermal bonded
Brand Names
Fibrella, Novelin
For Suominen Nonwovens, net sales dropped 9% to $85 million in 2005 compared to $93.5 million in 2004 as sales volumes were affected by challenges to branded wet wipes manufacturers in Europe. “Both the trend in sales prices and continued strong rises in the prices of oil-based raw materials and energy eroded financial performance,” said Sakari Santa-Paavola, vice president and general manager.
By technology, thermal bonded nonwovens lost ground to alternative materials in hygiene products resulting in a clear sales decline while volumes in spunlaced nonwovens were slightly better than the previous year. Despite saturation of spunlace in the European market, Mr. Santa-Paavola said wipes is still an important and viable business for Suominen, whose spunlace operation accounts for roughly 80% of its sales. “On the horizon of the spunlace business there is still new light in sight, mainly due to growth of its current product range and geographical expansion,” he said
While Europe remains Suominen’s primary market, the upswing in the usage of spunlaced nonwovens in the U.S. wipes market has meant good news for Suominen, particularly as the U.S. spunlace market is not as saturated at Europe’s.
“The U.S. is an important export market for us, Europe being Suominen’s main market area. Growing demand of spunlace in the U.S. has been positive news for the whole nonwovens industry. With the help of Suominen’s logistics solutions we have been able to act as a local supplier in the U.S.”
Suominen recently completed a debottlenecking project of its spunlace operation, increasing its capacity by 20% and allowing the company to efficiently process lighter nonwovens. Also to this company’s advantage is its ability to offer its customers individual products by having a large variety of PP, PET, PLA, viscose, cellulose pulp and cotton blends as well as a number of finishing techniques.
“Suominen’s wet wipes business is successfully rounded but there is still room for improvement. Integration is evolving according to previous plans,” Mr. Santa-Paavola added. Three years ago, Suominen forward-integrated into wet wipes production with the acquisition of Codi International, a Dutch wipes converter. In 2005, this unit produced about 100 million packs of wipes and net sales decreased by one-fifth. Challenges here included structural changes in retail business as well as generally slower growth in the marketplace.
In summer 2005, Suominen complete the final stages in the construction of a new product facility for wipes and since then all production lines have been operating at full capacity. In 2006, having finished rationalization measures, Suominen’s wet wipes business has begun to restore profitability. The target is to retain the marketshare lost during 2004-2005 and achieve growth particularly in personal care wipes but also in baby and household cleaning wipes, according to Mr. Santa-Paavola.
Much of this recovery has been achieved through research and development. “Suominen is constantly investing in product and process development to be able to offer its customers more innovative products and solutions. Pilot lines for each production technology (PP fiber, thermal bonding, hydroentanglement, converting and multi-layer film) makes it possible to run all development stages in house.
“By making good use of our competitive R&D, and raw material and process variations, we are able to offer our customers individual products. Close and continuous cooperation with customers and suppliers ensures that new and innovative ideas are brought to the market quickly.”
Sales: $85 Million
Description: Key Personnel
Suominen Corporation: Heikki Bergholm, president and CEO, Esa Palttala, executive vice president, Wipes and Nonwovens; Juha Henttonen, vice president, Flexible Packaging; Pekka Rautala, vice president, Wet Wipes Business Unit, Arto Kiiskinen, vice president, CFO. Suominen Nonwovens: Sakari Santa-Paavola, commercial director, Teppo Lainio, production director, Margareta Huldén, product and process development director
Plant
Nakkila, Finland
ISO Status
ISO 9001, 14001 environmental certification
Processes
Hydroentangled, thermal bonded
Brand Names
Fibrella, Novelin
For Suominen Nonwovens, net sales dropped 9% to $85 million in 2005 compared to $93.5 million in 2004 as sales volumes were affected by challenges to branded wet wipes manufacturers in Europe. “Both the trend in sales prices and continued strong rises in the prices of oil-based raw materials and energy eroded financial performance,” said Sakari Santa-Paavola, vice president and general manager.
By technology, thermal bonded nonwovens lost ground to alternative materials in hygiene products resulting in a clear sales decline while volumes in spunlaced nonwovens were slightly better than the previous year. Despite saturation of spunlace in the European market, Mr. Santa-Paavola said wipes is still an important and viable business for Suominen, whose spunlace operation accounts for roughly 80% of its sales. “On the horizon of the spunlace business there is still new light in sight, mainly due to growth of its current product range and geographical expansion,” he said
While Europe remains Suominen’s primary market, the upswing in the usage of spunlaced nonwovens in the U.S. wipes market has meant good news for Suominen, particularly as the U.S. spunlace market is not as saturated at Europe’s.
“The U.S. is an important export market for us, Europe being Suominen’s main market area. Growing demand of spunlace in the U.S. has been positive news for the whole nonwovens industry. With the help of Suominen’s logistics solutions we have been able to act as a local supplier in the U.S.”
Suominen recently completed a debottlenecking project of its spunlace operation, increasing its capacity by 20% and allowing the company to efficiently process lighter nonwovens. Also to this company’s advantage is its ability to offer its customers individual products by having a large variety of PP, PET, PLA, viscose, cellulose pulp and cotton blends as well as a number of finishing techniques.
“Suominen’s wet wipes business is successfully rounded but there is still room for improvement. Integration is evolving according to previous plans,” Mr. Santa-Paavola added. Three years ago, Suominen forward-integrated into wet wipes production with the acquisition of Codi International, a Dutch wipes converter. In 2005, this unit produced about 100 million packs of wipes and net sales decreased by one-fifth. Challenges here included structural changes in retail business as well as generally slower growth in the marketplace.
In summer 2005, Suominen complete the final stages in the construction of a new product facility for wipes and since then all production lines have been operating at full capacity. In 2006, having finished rationalization measures, Suominen’s wet wipes business has begun to restore profitability. The target is to retain the marketshare lost during 2004-2005 and achieve growth particularly in personal care wipes but also in baby and household cleaning wipes, according to Mr. Santa-Paavola.
Much of this recovery has been achieved through research and development. “Suominen is constantly investing in product and process development to be able to offer its customers more innovative products and solutions. Pilot lines for each production technology (PP fiber, thermal bonding, hydroentanglement, converting and multi-layer film) makes it possible to run all development stages in house.
“By making good use of our competitive R&D, and raw material and process variations, we are able to offer our customers individual products. Close and continuous cooperation with customers and suppliers ensures that new and innovative ideas are brought to the market quickly.”
Location: Nakkila, Finland
Sales: $84.5 Million
Description: Key Personnel
Suominen Corporation: Kalle Tanhuanpää, president and CEO, Suominen; Nonwovens: Sakari Santa-Paavola, vice president and general manager Margareta Huldén, product and process development director, Henri Laitervo, sales director
Plant
Nakkila, Finland
ISO Status
ISO 9001, 14001 environmental certification
Processes
Hydroentangled, thermal bonded
Brand Names
Fibrella, Biolace, Novelin
Sales remained flat at €67.3 million for Finnish nonwovens manufacturer Suominen Nonwovens in 2006. The maker of spunlaced and thermal bonded nonwovens reported sluggish sales during the first half of the year followed by increased demand during the third and fourth quarters. This trend has continued into 2007 with first quarter sales clocking in 6% higher than the first quarter of 2006, according to Sakari Santa-Paavola, vice president and general manager. “We have made a lot of efforts to be successful and grow our sales and we have been successful,” he said.
While Suominen’s spunlace business has been growing steadily on wipes demand, the other portion of its business, thermal bonded has been marked by slow growth and slackened demand in recent years but this situation is changing, said Mr. Santa-Paavola. “It seems that there is a demand for thermal bond in the higher end of the feminine hygiene market, and it has been easy for us to create a product that meets the denier requirements and other demands of this market.”
Suominen is constantly making improvements on the quality and production levels of its equipment to make sure that it gives customers the ability to differentiate products.
Meanwhile, Suominen’s spunlace business continues to grow thanks to increased wipes demand. In this technology area, Suominen operates four lines, all in Nakkila, giving it the flexibility to manufacture a variety of different products using a number of finishing techniques and raw material types. This year, Suominen will add the ability to hydroentangle cotton through the addition of a more sophisticated water filtration and recycling system. This move responds to increased interest among marketers and consumers of wipes in cotton.
Flexibility with raw materials has also helped ease the burden of volatile raw material costs for Suominen. While industry watchdogs predict that viscose pricing levels have plateaued, at least for the time being, few expect costs will drop, meaning that companies throughout the spunlace supply chain have had to accept new pricing structures. “Pricing has become more accepted,” Mr. Santa-Paavola said. “Customers are now valuing things like strong research and development and service and not considering price as the first thing.”
Raw material innovation, in fact, has led to the creation of a new wipe substrate—called Biolace —made from natural or renewable fibers such has viscose, cotton, pulp and PLA, which is produced from corn starch during a fermentation process. Biolace represents a first step toward a new single-use and disposability mentality, according to the company. By combining raw materials from renewable resources with Suominen’s unique energy-saving production processes and providing nonwovens able to biodegrade 100% in available municipal compost facilities, Suominen is offering a new alternative to the wipes market.
Biolace is just one part of Suominen’s corporate-wide environmental consciousness. In its Flexible Packaging division, a stylish matte film that includes lime as filler and enables users to write on the surface with a normal ballpoint pen is available, while in the Wipes division, a wet wipe lotion using more environmentally friendly ingredients is offered.
Speaking of Wet Wipes, this portion of its business—acquired from Codi International in 2003—continues to perform well despite severe price competition in the European wet wipes market. Suominen Nonwovens’ contribution to this business continues to grow as well and collaboration between the two divisions has enhanced the company’s ability to meet its customers’ demands.
“Our company structure is different from that of our competitors,” Mr. Santa-Paavola said. “We are a one-stop shop to our customers with our Flexible Packaging division and our wipes converting business. This gives us a benefit in the speed we can complete all of the steps because everything is coming from one place.”
Sales: $84.5 Million
Description: Key Personnel
Suominen Corporation: Kalle Tanhuanpää, president and CEO, Suominen; Nonwovens: Sakari Santa-Paavola, vice president and general manager Margareta Huldén, product and process development director, Henri Laitervo, sales director
Plant
Nakkila, Finland
ISO Status
ISO 9001, 14001 environmental certification
Processes
Hydroentangled, thermal bonded
Brand Names
Fibrella, Biolace, Novelin
Sales remained flat at €67.3 million for Finnish nonwovens manufacturer Suominen Nonwovens in 2006. The maker of spunlaced and thermal bonded nonwovens reported sluggish sales during the first half of the year followed by increased demand during the third and fourth quarters. This trend has continued into 2007 with first quarter sales clocking in 6% higher than the first quarter of 2006, according to Sakari Santa-Paavola, vice president and general manager. “We have made a lot of efforts to be successful and grow our sales and we have been successful,” he said.
While Suominen’s spunlace business has been growing steadily on wipes demand, the other portion of its business, thermal bonded has been marked by slow growth and slackened demand in recent years but this situation is changing, said Mr. Santa-Paavola. “It seems that there is a demand for thermal bond in the higher end of the feminine hygiene market, and it has been easy for us to create a product that meets the denier requirements and other demands of this market.”
Suominen is constantly making improvements on the quality and production levels of its equipment to make sure that it gives customers the ability to differentiate products.
Meanwhile, Suominen’s spunlace business continues to grow thanks to increased wipes demand. In this technology area, Suominen operates four lines, all in Nakkila, giving it the flexibility to manufacture a variety of different products using a number of finishing techniques and raw material types. This year, Suominen will add the ability to hydroentangle cotton through the addition of a more sophisticated water filtration and recycling system. This move responds to increased interest among marketers and consumers of wipes in cotton.
Flexibility with raw materials has also helped ease the burden of volatile raw material costs for Suominen. While industry watchdogs predict that viscose pricing levels have plateaued, at least for the time being, few expect costs will drop, meaning that companies throughout the spunlace supply chain have had to accept new pricing structures. “Pricing has become more accepted,” Mr. Santa-Paavola said. “Customers are now valuing things like strong research and development and service and not considering price as the first thing.”
Raw material innovation, in fact, has led to the creation of a new wipe substrate—called Biolace —made from natural or renewable fibers such has viscose, cotton, pulp and PLA, which is produced from corn starch during a fermentation process. Biolace represents a first step toward a new single-use and disposability mentality, according to the company. By combining raw materials from renewable resources with Suominen’s unique energy-saving production processes and providing nonwovens able to biodegrade 100% in available municipal compost facilities, Suominen is offering a new alternative to the wipes market.
Biolace is just one part of Suominen’s corporate-wide environmental consciousness. In its Flexible Packaging division, a stylish matte film that includes lime as filler and enables users to write on the surface with a normal ballpoint pen is available, while in the Wipes division, a wet wipe lotion using more environmentally friendly ingredients is offered.
Speaking of Wet Wipes, this portion of its business—acquired from Codi International in 2003—continues to perform well despite severe price competition in the European wet wipes market. Suominen Nonwovens’ contribution to this business continues to grow as well and collaboration between the two divisions has enhanced the company’s ability to meet its customers’ demands.
“Our company structure is different from that of our competitors,” Mr. Santa-Paavola said. “We are a one-stop shop to our customers with our Flexible Packaging division and our wipes converting business. This gives us a benefit in the speed we can complete all of the steps because everything is coming from one place.”
Location: Nakkila, Finland
Sales: $104 Million
Description: Key Personnel
Petri Rolig, president and CEO; Paul-Erik Tolvo, vice president and general manager of Suominen Wipes and Nonwovens; Sakari Santa-Paavola, general manager of Suominen Nonwovens; Peter Kolster, general manager, Suominen Codi Wipes; Olaf van Stempoort, director of sales, Suominen Wipes; Henri Laitervo, director, marketing and offering management, Suominen Wipes; Mikko Pellinen, vice president and general manager of Suominen Flexible Packaging
Plants
Nakkila, Finland
ISO Status
ISO 9001; 14001 environmental certification
Processes
Hydroentangled, thermal bonded
Brand names
Fibrella, Biolace, Novelin
Nonwovens sales were up significantly for Finland’s Suominen Corporation thanks to strong demand in North America as well as continued demand in Europe for its spunlaced nonwovens. Meanwhile, the company’s thermal bonded businesses—a supplier of coverstock material for hygiene items—remained flat.
With sales of €77 million and a sole operation in Nakkila, Finland, Suominen is content with its status as a smaller supplier of thermal bonding as well as a maker of specialty, binder-free nonwovens that can be tailor-made to meet the needs of any wiping or cleaning application.
“In thermal bonded, we have a smaller share and we know we are not a major player but we are fine with that status,” said Henri Laitervo. “In spunlace, demand is still strong and there is enough business to go around.”
Having avoided making “plain vanilla” spunlace nonwovens, Suominen has been able to escape much of the pricing pressures facing this market and has instead offered a value-addded substrate for wipes manufacturers looking for a customizable material. In addition to its Fibrella spunlace brand, last year the company introduced Biolace, which is made from natural or renewable fibers such as viscose, cotton, pulp and PLA, which is produced from corn starch during a fermentation process. Biolace represents a first step toward a new single-use and disposability mentality, according to the company. By combining raw materials from renewable resources with Suominen’s unique energy-saving production process and providing nonwovens able to biodegrade 100% in available municipal compost facilities, Suominen is offering a new offering to the wipes market.
This combined with the introduction of its Amerfeel film and an environmentally friendly wipe lotion has enabled Suominen to offer its customer a fully eco-conscious product. In fact, this ability to be a one-stop shop—achieved through synergies between its nonwovens, wipes and flexible packaging divisions—is one of Suominen’s strongest selling points. Currently, Suominen Wet Wipes consumes about €9-10 million, of 15%, of Suominen nonwovens’ total sales.
Speaking of wet wipes, this portion of Suominen’s business, based in The Netherlands, continues to perform well, comprising about 32% of the company’s total sales. As wipes growth is expected to continue at levels ahead of the GDP, executives expect its wipes buiness to.
Sales: $104 Million
Description: Key Personnel
Petri Rolig, president and CEO; Paul-Erik Tolvo, vice president and general manager of Suominen Wipes and Nonwovens; Sakari Santa-Paavola, general manager of Suominen Nonwovens; Peter Kolster, general manager, Suominen Codi Wipes; Olaf van Stempoort, director of sales, Suominen Wipes; Henri Laitervo, director, marketing and offering management, Suominen Wipes; Mikko Pellinen, vice president and general manager of Suominen Flexible Packaging
Plants
Nakkila, Finland
ISO Status
ISO 9001; 14001 environmental certification
Processes
Hydroentangled, thermal bonded
Brand names
Fibrella, Biolace, Novelin
Nonwovens sales were up significantly for Finland’s Suominen Corporation thanks to strong demand in North America as well as continued demand in Europe for its spunlaced nonwovens. Meanwhile, the company’s thermal bonded businesses—a supplier of coverstock material for hygiene items—remained flat.
With sales of €77 million and a sole operation in Nakkila, Finland, Suominen is content with its status as a smaller supplier of thermal bonding as well as a maker of specialty, binder-free nonwovens that can be tailor-made to meet the needs of any wiping or cleaning application.
“In thermal bonded, we have a smaller share and we know we are not a major player but we are fine with that status,” said Henri Laitervo. “In spunlace, demand is still strong and there is enough business to go around.”
Having avoided making “plain vanilla” spunlace nonwovens, Suominen has been able to escape much of the pricing pressures facing this market and has instead offered a value-addded substrate for wipes manufacturers looking for a customizable material. In addition to its Fibrella spunlace brand, last year the company introduced Biolace, which is made from natural or renewable fibers such as viscose, cotton, pulp and PLA, which is produced from corn starch during a fermentation process. Biolace represents a first step toward a new single-use and disposability mentality, according to the company. By combining raw materials from renewable resources with Suominen’s unique energy-saving production process and providing nonwovens able to biodegrade 100% in available municipal compost facilities, Suominen is offering a new offering to the wipes market.
This combined with the introduction of its Amerfeel film and an environmentally friendly wipe lotion has enabled Suominen to offer its customer a fully eco-conscious product. In fact, this ability to be a one-stop shop—achieved through synergies between its nonwovens, wipes and flexible packaging divisions—is one of Suominen’s strongest selling points. Currently, Suominen Wet Wipes consumes about €9-10 million, of 15%, of Suominen nonwovens’ total sales.
Speaking of wet wipes, this portion of Suominen’s business, based in The Netherlands, continues to perform well, comprising about 32% of the company’s total sales. As wipes growth is expected to continue at levels ahead of the GDP, executives expect its wipes buiness to.
Location: NAKKILA, FINLAND
Sales: $107 Million
Description: Key Personnel
Petri Rolig, president and CEO of Suominen Corporation; Paul-Erik Toivo, vice president and general manager of Suominen Wiping; Mads Kiilerich, director operations of Suominen Nonwovens; Margareta Huldén, director products
Nonwovens Plants
Nakkila, Finland
ISO Status
ISO 9001; 14001 environmental certification
Processes
Hydroentangled, thermal bonded
Brand names
Fibrella, Biolace, Novelin
Reporting a slight sales decline was Finland’s Suominen Nonwovens, a maker of spunlaced and thermal bonded nonwovens. While deliveries of thermal bonded hygiene materials as well as demand for wound care products increased, sales of spunlaced nonwovens felt pressure from North American suppliers.
Despite this, the company describes the spunlace market as encouraging. “The demand for our premium products was satisfactory,” said vice president and general manager Paul-Erik Toivo. “We could benefit from our long-time focus is on innovation and quality, partly offsetting the impact for the general slowdown in the marks during the last quarter of 2008.”
Suominen Nonwovens has responded to these slowdowns by streamlining its product portfolio, launching new valued added production and producing only against customer orders. Helping more so, Mr. Toivo explained is the long-term growth trajectory present in the wipes market. “Our customers are actively exploring new solutions and concepts in many segments, accordingly we see our business developing favorably also in the future.”
The bulk of Suominen’s spunlace output targets the wipes market and the company has chosen to play on the high end of this market with innovative products. One of these is Biolace, Suominen’s 100% biodegradable spunlace material launched two years ago, which continues to do well as things like sustainability and environmental friendliness are becoming increasingly important for everyone. “As a responsible producer, our aim is to provide customers and end users with products that meet their demands while using all raw materials and other sources as efficiently as possible. We also work hard to reduce the amount of energy and water used in our production processes and we recycle our waste. Our customers share our vision for a more eco-friendly future.”
Other innovations include price competitive spunlace with reasonably lower basis weights as well as launches of new materials in Suominen’s Fibrella spunlace range based on proprietary customer projects. “Quality will be further emphasized in our business proposition,” said Mr. Toivo. “Our state-of-the-art pilot lines are highly appreciated by our customers and a core element in our joint innovation efforts.”
The other portion of Suominen’s business, thermal bonded nonwovens, falls under the Novelin brand name. These nonwovens serve markets as a surface material in a variety of hygiene products. While marketshare in general been declining in Europe for the past several years, sales have been stable in 2008 and Suominen is exploring new applications for its thermal bonded products.”
“The production process at Suominen Nonwovens is constantly developed and our cost-base is continuously streamlined. Recently-made investments to our production lines have improved our cost competitiveness further,” said Mr. Toivo. “All this, in conjunction with our strive for innovation and increased customer proximity, makes us well positioned for profitable growth.”
Sales: $107 Million
Description: Key Personnel
Petri Rolig, president and CEO of Suominen Corporation; Paul-Erik Toivo, vice president and general manager of Suominen Wiping; Mads Kiilerich, director operations of Suominen Nonwovens; Margareta Huldén, director products
Nonwovens Plants
Nakkila, Finland
ISO Status
ISO 9001; 14001 environmental certification
Processes
Hydroentangled, thermal bonded
Brand names
Fibrella, Biolace, Novelin
Reporting a slight sales decline was Finland’s Suominen Nonwovens, a maker of spunlaced and thermal bonded nonwovens. While deliveries of thermal bonded hygiene materials as well as demand for wound care products increased, sales of spunlaced nonwovens felt pressure from North American suppliers.
Despite this, the company describes the spunlace market as encouraging. “The demand for our premium products was satisfactory,” said vice president and general manager Paul-Erik Toivo. “We could benefit from our long-time focus is on innovation and quality, partly offsetting the impact for the general slowdown in the marks during the last quarter of 2008.”
Suominen Nonwovens has responded to these slowdowns by streamlining its product portfolio, launching new valued added production and producing only against customer orders. Helping more so, Mr. Toivo explained is the long-term growth trajectory present in the wipes market. “Our customers are actively exploring new solutions and concepts in many segments, accordingly we see our business developing favorably also in the future.”
The bulk of Suominen’s spunlace output targets the wipes market and the company has chosen to play on the high end of this market with innovative products. One of these is Biolace, Suominen’s 100% biodegradable spunlace material launched two years ago, which continues to do well as things like sustainability and environmental friendliness are becoming increasingly important for everyone. “As a responsible producer, our aim is to provide customers and end users with products that meet their demands while using all raw materials and other sources as efficiently as possible. We also work hard to reduce the amount of energy and water used in our production processes and we recycle our waste. Our customers share our vision for a more eco-friendly future.”
Other innovations include price competitive spunlace with reasonably lower basis weights as well as launches of new materials in Suominen’s Fibrella spunlace range based on proprietary customer projects. “Quality will be further emphasized in our business proposition,” said Mr. Toivo. “Our state-of-the-art pilot lines are highly appreciated by our customers and a core element in our joint innovation efforts.”
The other portion of Suominen’s business, thermal bonded nonwovens, falls under the Novelin brand name. These nonwovens serve markets as a surface material in a variety of hygiene products. While marketshare in general been declining in Europe for the past several years, sales have been stable in 2008 and Suominen is exploring new applications for its thermal bonded products.”
“The production process at Suominen Nonwovens is constantly developed and our cost-base is continuously streamlined. Recently-made investments to our production lines have improved our cost competitiveness further,” said Mr. Toivo. “All this, in conjunction with our strive for innovation and increased customer proximity, makes us well positioned for profitable growth.”
Location: Nakkila, Finland
Sales: $72 million
Description: Key Personnel
Petri Rolig, president and CEO of Suominen Corporation; Paul-Erik Toivo, vice president and general manager of Suominen Wiping; Juha Jokinen, director sales of Suominen Nonwovens; Mads Kiilerich, director operations of Suominen Nonwovens; Margareta Huldén, director products of Suominen Nonwovens Plants
Plants
Nakkila, Finland
Processes
Hydroentangled, thermal bonded
Brand names
Fibrella, Biolace, Karelin, Novelin
Sales clocked in at €57 million for Suominen Nonwovens, a Finnish producer of thermal bonded and spunlaced nonwovens. The drop in volume was partly due to lower volumes in eastern markets and above average deliveries to the North American market in 2008 compared to 2009. Additionally, the lower cost of raw materials impacted the topline correspondingly as nonwovens manufacturers were not able to use the lower cost of raw materials to their benefit in a manner that contributed to the company’s overall long-term profitability.
Despite this drop, executives described 2009 was a very good year financially as its efficiency improved and working capital was reduced. As Suominen’s active sale work and rapid product innovations allowed it to develop new business during 2009. Nonwovens also improved its production efficiency through various small investments and proactive development work.
Other key efforts included inline and machine upgrades, increased sales efforts and improved employee competencies, said Paul-Erik Toivo, vice president and general manager of Suominen Wiping. “We are supplying the market with emphasis on added value products and these have clearly performed better compared with low quality and lower price products.”
With a good percentage of its business represented by spunlaced nonwovens, success or failure in disposable wipes is largely tied to Suominen’s results. According to Mr. Toivo, customers in this segment have been able to manage their businesses well even as private labels continue to challenge brands, resulting in slowly eroding retail values per pack and the subsequent need for cost engineering and target oriented innovation.
“One could almost say there is a kind of polarization in the market, whereby premium products are doing well, as are low cost ones but products positioned somewhere in the middle are facing difficult times,” Mr. Toivo said.
Looking ahead, Mr. Toivo predicted that pricing pressures in spunlace will only continue in Europe as new capacity additions continue to come onstream, adding to an already existing overcapacity situation in the market. However, demand will continue to increase, solving this issue, as the benefits of spunlace will allow it to target new markets.
One of the ways Suominen is achieving this is through a modernization plan, which not only added capacity to its operation, but also improved its quality and efficiency by cutting energy and water costs, which are sustainable benefits in line with Suominen’s environmental concept.
Speaking of environmental concepts, a few years ago, the company added a Biolace range of sustainable products, which are all the time attracting more interest and demand. Other value added products include embossing, alternative raw material blends as well as a continuous development of new substrates. “This close cooperation with our customers is catering to their needs via specialty products and is one of the key elements in developing Suominen’s nonwovens business further.”
These efforts have also allowed Suominen to expand beyond wipes, most notably in the wound care segment. “We have attracted new customers and are currently working on new products for this market,” Mr. Toivo explained. “The challenge the market faces is the increasing competition from “ready to sell” products supplied from among others China.”
In addition to spunlace, Suominen continues to operate a modest thermal bonded business where it is seeing a rebound with demand for value added products. One recent development, Karelin, includes new varieties for thermal bonded products that satisfy the needs for active skin care performance on top of fulfilling the basic needs of the material.
According to the company, Kareline, which is available in basis weights ranging from 18-35 gsm, is ideal for baby care, fem hy and incontinence products where it can bring softness and textile-like feel to the end products, minimizing the feel of plastic. Additionally, Karelin can be tailored to customer needs. This can be done, for example, by adding soothing and caring agents as well as antibacterial and odor-free features. Karelin can have either a hydrophilic or hydrophobic nature.
Sales: $72 million
Description: Key Personnel
Petri Rolig, president and CEO of Suominen Corporation; Paul-Erik Toivo, vice president and general manager of Suominen Wiping; Juha Jokinen, director sales of Suominen Nonwovens; Mads Kiilerich, director operations of Suominen Nonwovens; Margareta Huldén, director products of Suominen Nonwovens Plants
Plants
Nakkila, Finland
Processes
Hydroentangled, thermal bonded
Brand names
Fibrella, Biolace, Karelin, Novelin
Sales clocked in at €57 million for Suominen Nonwovens, a Finnish producer of thermal bonded and spunlaced nonwovens. The drop in volume was partly due to lower volumes in eastern markets and above average deliveries to the North American market in 2008 compared to 2009. Additionally, the lower cost of raw materials impacted the topline correspondingly as nonwovens manufacturers were not able to use the lower cost of raw materials to their benefit in a manner that contributed to the company’s overall long-term profitability.
Despite this drop, executives described 2009 was a very good year financially as its efficiency improved and working capital was reduced. As Suominen’s active sale work and rapid product innovations allowed it to develop new business during 2009. Nonwovens also improved its production efficiency through various small investments and proactive development work.
Other key efforts included inline and machine upgrades, increased sales efforts and improved employee competencies, said Paul-Erik Toivo, vice president and general manager of Suominen Wiping. “We are supplying the market with emphasis on added value products and these have clearly performed better compared with low quality and lower price products.”
With a good percentage of its business represented by spunlaced nonwovens, success or failure in disposable wipes is largely tied to Suominen’s results. According to Mr. Toivo, customers in this segment have been able to manage their businesses well even as private labels continue to challenge brands, resulting in slowly eroding retail values per pack and the subsequent need for cost engineering and target oriented innovation.
“One could almost say there is a kind of polarization in the market, whereby premium products are doing well, as are low cost ones but products positioned somewhere in the middle are facing difficult times,” Mr. Toivo said.
Looking ahead, Mr. Toivo predicted that pricing pressures in spunlace will only continue in Europe as new capacity additions continue to come onstream, adding to an already existing overcapacity situation in the market. However, demand will continue to increase, solving this issue, as the benefits of spunlace will allow it to target new markets.
One of the ways Suominen is achieving this is through a modernization plan, which not only added capacity to its operation, but also improved its quality and efficiency by cutting energy and water costs, which are sustainable benefits in line with Suominen’s environmental concept.
Speaking of environmental concepts, a few years ago, the company added a Biolace range of sustainable products, which are all the time attracting more interest and demand. Other value added products include embossing, alternative raw material blends as well as a continuous development of new substrates. “This close cooperation with our customers is catering to their needs via specialty products and is one of the key elements in developing Suominen’s nonwovens business further.”
These efforts have also allowed Suominen to expand beyond wipes, most notably in the wound care segment. “We have attracted new customers and are currently working on new products for this market,” Mr. Toivo explained. “The challenge the market faces is the increasing competition from “ready to sell” products supplied from among others China.”
In addition to spunlace, Suominen continues to operate a modest thermal bonded business where it is seeing a rebound with demand for value added products. One recent development, Karelin, includes new varieties for thermal bonded products that satisfy the needs for active skin care performance on top of fulfilling the basic needs of the material.
According to the company, Kareline, which is available in basis weights ranging from 18-35 gsm, is ideal for baby care, fem hy and incontinence products where it can bring softness and textile-like feel to the end products, minimizing the feel of plastic. Additionally, Karelin can be tailored to customer needs. This can be done, for example, by adding soothing and caring agents as well as antibacterial and odor-free features. Karelin can have either a hydrophilic or hydrophobic nature.
Nakkila, Finland
www.suominen.fi
2011 Nonwovens Sales: $131 million
Key Personnel: Jean-Marie Becker, executive vice president, Suominen Nonwovens; Timo Hiekkaranta, vice president, Sales; Juha Jokinen, vice president, Business Development, Mimoun Saim, vice president, Operations Europe and Sourcing; Larry Kinn, vice president, Operations Americas; Laurent Pennequin, vice president, Finance and Administration; Roberto Pedoja, vice president, Innovation, Technology & Investments
Plants: Bethune, SC; Green Bay, WI; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Windsor Locks, CT; Alicante, Spain; Paulinia, Brazil (scheduled to become part of Suominen in the third quarter of 2012)
Processes: Spunlace, thermal bonded, carded, hydroentangled
Major Markets: Wipes, medical, hygiene
In 2011, Suominen Nonwovens transformed itself from a small, one-site nonwovens manufacturer into the world’s largest maker of spunlaced nonwovens with sites spanning the globe. This transformation was achieved through the purchase of Ahlstrom’s former Home and Personal Care, or wipes, business in a €170 million deal.
With manufacturing assets in Wisconsin, Connecticut, South Carolina, Brazil, Finland, Spain and Italy, Ahlstrom’s wipes business reported sales of about €291 million per year, more than four times Suominen’s 2010 nonwovens sales which were reported at €59.1 million.
While the deal (excluding the Brazilian operation) did not close until late October, Suominen Nonwovens sales already received a nice bump in 2011, increasing from €59.1 million to €102 million ($130 million) last year. Pro forma sales for the period are estimated at €375 million ($485 million).
“The acquisition will virtually quadruple the size of the business adding significant volumes in North and South America and Asia, as well as in Europe and the Middle East,” says Alistair Brown, director of marketing and communications. “We cannot make an estimate of 2012 sales but we anticipate retaining and growing the business of both the merged companies.”
The wipes market remains highly competitive, globally, but at the same time, shows volume growth of between single and double figures in various geographies around the world, Brown adds. “By remaining flexible in our operations and providing products to our customers, wherever they are in the world, from geographically spread locations we expect to keep Suominen Nonwovens at the forefront of the global nonwovens wiping market and to extend its presence in other segments.”
As it works to integrate two businesses, Suominen has already had to take some measures to improve performance. In June, the company announced it would close two lines at the original Suominen site in Nakkila, Finland, where it would also streamline administrative and support staff, impacting about 76 employees. According to executives, these measures will impact one thermal bond and one spunlace machine and lead to a write down of about €3 million, which will result in improvement of the site’s overall profitability.
“As part of our announced Summit Program, instigated to return our business to profitability, we made a decision to streamline our Nakkila operations in order to improve this situation and, at the same time, to make our total operational platform more ideally suited to meeting our global customers’ volume demands,” Brown explains.
Meanwhile, all of the acquired plants are operating as planned. The Mozzate, Italy, plant experienced the temporary closure of one production machine as a result of a fire, but it is back to business as usual. Due to bureaucratic difficulties, the acquisition of the Brazilian site has been delayed, but executives expect to complete the phase of the purchase by the end of the third quarter.
The combination of Suominen and Ahlstrom brings together a number of brands, including Hydraspun flushable substrates and Biolace eco-friendly nonwovens. The integration of these brands has been seamless, reflecting Suominen Nonwovens’ strong presence and activity in the sustainable nonwovens market segment. The company will continue to support, grow and develop these brands throughout the world. As for technologies, the acquisition of the Home and Personal Business area from Ahlstrom has been completely complementary to Suominen Nonwovens, according to Brown, and, in no way, duplicates available technologies. “Additionally, the technical and operational expertise from both sides has melded very well to use experience in different technologies to jointly develop all our operational and new product development activities,” he adds.
This joint expertise will help Suominen Nonwovens—as the needs of its customers change—strive to create sustainable and environmentally-friendly solutions to customers’ needs and to seek increasingly effective products. In fact, Suominen’s total global growth strategy revolves around its corporate guiding principles of trust, expertise and partnership.
“In combination with flexible, global operations and the broadest range of technologies and processes available from any company in the wiping arena, we are confident that we have all the right resources in place to make our growth strategy achievable,” Brown concludes. “Suominen Nonwovens is the leading global manufacturer of nonwovens for wipes and we will continue to strive to remain so. Our expertise in nonwoven technologies will also allow us to look at other market segments where that expertise and our assets enable us to produce differentiated and value-adding new products.”
www.suominen.fi
2011 Nonwovens Sales: $131 million
Key Personnel: Jean-Marie Becker, executive vice president, Suominen Nonwovens; Timo Hiekkaranta, vice president, Sales; Juha Jokinen, vice president, Business Development, Mimoun Saim, vice president, Operations Europe and Sourcing; Larry Kinn, vice president, Operations Americas; Laurent Pennequin, vice president, Finance and Administration; Roberto Pedoja, vice president, Innovation, Technology & Investments
Plants: Bethune, SC; Green Bay, WI; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Windsor Locks, CT; Alicante, Spain; Paulinia, Brazil (scheduled to become part of Suominen in the third quarter of 2012)
Processes: Spunlace, thermal bonded, carded, hydroentangled
Major Markets: Wipes, medical, hygiene
In 2011, Suominen Nonwovens transformed itself from a small, one-site nonwovens manufacturer into the world’s largest maker of spunlaced nonwovens with sites spanning the globe. This transformation was achieved through the purchase of Ahlstrom’s former Home and Personal Care, or wipes, business in a €170 million deal.
With manufacturing assets in Wisconsin, Connecticut, South Carolina, Brazil, Finland, Spain and Italy, Ahlstrom’s wipes business reported sales of about €291 million per year, more than four times Suominen’s 2010 nonwovens sales which were reported at €59.1 million.
While the deal (excluding the Brazilian operation) did not close until late October, Suominen Nonwovens sales already received a nice bump in 2011, increasing from €59.1 million to €102 million ($130 million) last year. Pro forma sales for the period are estimated at €375 million ($485 million).
“The acquisition will virtually quadruple the size of the business adding significant volumes in North and South America and Asia, as well as in Europe and the Middle East,” says Alistair Brown, director of marketing and communications. “We cannot make an estimate of 2012 sales but we anticipate retaining and growing the business of both the merged companies.”
The wipes market remains highly competitive, globally, but at the same time, shows volume growth of between single and double figures in various geographies around the world, Brown adds. “By remaining flexible in our operations and providing products to our customers, wherever they are in the world, from geographically spread locations we expect to keep Suominen Nonwovens at the forefront of the global nonwovens wiping market and to extend its presence in other segments.”
As it works to integrate two businesses, Suominen has already had to take some measures to improve performance. In June, the company announced it would close two lines at the original Suominen site in Nakkila, Finland, where it would also streamline administrative and support staff, impacting about 76 employees. According to executives, these measures will impact one thermal bond and one spunlace machine and lead to a write down of about €3 million, which will result in improvement of the site’s overall profitability.
“As part of our announced Summit Program, instigated to return our business to profitability, we made a decision to streamline our Nakkila operations in order to improve this situation and, at the same time, to make our total operational platform more ideally suited to meeting our global customers’ volume demands,” Brown explains.
Meanwhile, all of the acquired plants are operating as planned. The Mozzate, Italy, plant experienced the temporary closure of one production machine as a result of a fire, but it is back to business as usual. Due to bureaucratic difficulties, the acquisition of the Brazilian site has been delayed, but executives expect to complete the phase of the purchase by the end of the third quarter.
The combination of Suominen and Ahlstrom brings together a number of brands, including Hydraspun flushable substrates and Biolace eco-friendly nonwovens. The integration of these brands has been seamless, reflecting Suominen Nonwovens’ strong presence and activity in the sustainable nonwovens market segment. The company will continue to support, grow and develop these brands throughout the world. As for technologies, the acquisition of the Home and Personal Business area from Ahlstrom has been completely complementary to Suominen Nonwovens, according to Brown, and, in no way, duplicates available technologies. “Additionally, the technical and operational expertise from both sides has melded very well to use experience in different technologies to jointly develop all our operational and new product development activities,” he adds.
This joint expertise will help Suominen Nonwovens—as the needs of its customers change—strive to create sustainable and environmentally-friendly solutions to customers’ needs and to seek increasingly effective products. In fact, Suominen’s total global growth strategy revolves around its corporate guiding principles of trust, expertise and partnership.
“In combination with flexible, global operations and the broadest range of technologies and processes available from any company in the wiping arena, we are confident that we have all the right resources in place to make our growth strategy achievable,” Brown concludes. “Suominen Nonwovens is the leading global manufacturer of nonwovens for wipes and we will continue to strive to remain so. Our expertise in nonwoven technologies will also allow us to look at other market segments where that expertise and our assets enable us to produce differentiated and value-adding new products.”
Nakkila, Finland
www.suominen.fi
2012 Nonwovens Sales: $602 million
Key Personnel: Jean-Marie Becker, executive vice president, Suominen Nonwovens; Timo Hiekkaranta, vice president, Sales; Karen Castle, vice president Sales North America; Saara Soderberg, vice president, Business Development, Marketing and Innovation; Mimoun Saim, vice president, Operations Europe and Sourcing; Larry Kinn, vice president, Operations Americas and HSE; Laurent Pennequin, vice president, Finance and Administration; Roberto Pedoja, vice president, Technology Development & Investments.
Plants: Bethune, SC; Green Bay, WI; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Windsor Locks, CT; Alicante, Spain
Processes: Spunlace, thermal bonded, carded, hydroentangled
Major Markets: Wipes, medical, hygiene
Sales climbed for Suominen in 2012 as it continued to integrate Ahlstrom’s former home and personal business, which was acquired in 2012. Not only has this acquisition brought Suominen’s sales up to $602 million, it has propelled it to the top of the nonwovens industry, making it the largest maker of spunlaced materials for the wipes market.
“This rapid growth was not without its own challenges,” says director of marketing and communications, Alistair Brown. “The creation of what was effectively a whole new company included a crucial task to merge a mix of international company cultures.”
In its new form, Suominen, which is based in Nakkila, Finland, operates three nonwovens plants in the U.S. in Wisconsin, Connecticut and South Carolina, and others in Brazil, Italy, Spain and Finland, a considerable change from the one-site producer it was prior to the acquisition.
“The integration comprised also the retention and development of customer relationships around the globe. Becoming truly global after being mainly focused on Europe was another important step in the process of creating New Suominen,” says Brown. “Significant markets, such as the U.S. and Asia, were reassured by a global marketing campaign to support Suominen Nonwovens statement of, ‘Now the biggest name in nonwovens for wipes.’”
As the biggest producer of nonwovens for wipes, Suominen this year launched the “We Love Wipes” campaign to strengthen its understanding of the need of consumers and consequently ensure it is better able to serve its customers and increase the share of the higher value added products in its portfolio. Bolstered by a campaign hub website at www.welovewipes.com as well as a variety of social media activities, We Love Wipes also aims to raise the overall awareness of wipes and the wide range of uses for them.
“Innovation at Suominen is not just about products but about changing the way business is done and challenging traditional long-held views. The market is very dynamic and it is clearly in our interest to become faster to market with the right products. This is one aspect we aim to further improve, with the support from the consumers, the genuine experts of wipes,” says Jean-Marie Becker, executive vice president of Suominen Nonwovens at the time of the campaign launch.
On the new product front, in April Suominen launched Exodus and Hercules Nonwovens for personal care and industrial applications as part of its strategy to strengthen its share of the higher value-added products. Both products provide customers with a quality performance in industrial and household wipes and contain cellulose and synthetic fibers, a combination that ensures optimized strength and absorbency with dimensional strength.
“Despite its toughness, Hercules Nonwoven has a soft, cloth-like feel, which makes it perfect also for cleaning hands quickly and conveniently while working. Both are available in four basis weights.
“We are always improving nonwoven product characteristics in such areas as texture, feel and cleaning through enhancements to the technologies we use in our processes,” Brown says.
Another area strong on Suominen’s radar is flushability. In June, the company said it would invest €2.5 million to increase the production capacity of Hydraspun substrates, some of which are defined as flushable by industry guidelines developed by INDA and EDANA, the industry associations.
“Suominen is constantly looking at the markets in which it operates,” Brown says. “Where we see opportunity to add value with nonwoven products will determine where we take our future offering.”
www.suominen.fi
2012 Nonwovens Sales: $602 million
Key Personnel: Jean-Marie Becker, executive vice president, Suominen Nonwovens; Timo Hiekkaranta, vice president, Sales; Karen Castle, vice president Sales North America; Saara Soderberg, vice president, Business Development, Marketing and Innovation; Mimoun Saim, vice president, Operations Europe and Sourcing; Larry Kinn, vice president, Operations Americas and HSE; Laurent Pennequin, vice president, Finance and Administration; Roberto Pedoja, vice president, Technology Development & Investments.
Plants: Bethune, SC; Green Bay, WI; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Windsor Locks, CT; Alicante, Spain
Processes: Spunlace, thermal bonded, carded, hydroentangled
Major Markets: Wipes, medical, hygiene
Sales climbed for Suominen in 2012 as it continued to integrate Ahlstrom’s former home and personal business, which was acquired in 2012. Not only has this acquisition brought Suominen’s sales up to $602 million, it has propelled it to the top of the nonwovens industry, making it the largest maker of spunlaced materials for the wipes market.
“This rapid growth was not without its own challenges,” says director of marketing and communications, Alistair Brown. “The creation of what was effectively a whole new company included a crucial task to merge a mix of international company cultures.”
In its new form, Suominen, which is based in Nakkila, Finland, operates three nonwovens plants in the U.S. in Wisconsin, Connecticut and South Carolina, and others in Brazil, Italy, Spain and Finland, a considerable change from the one-site producer it was prior to the acquisition.
“The integration comprised also the retention and development of customer relationships around the globe. Becoming truly global after being mainly focused on Europe was another important step in the process of creating New Suominen,” says Brown. “Significant markets, such as the U.S. and Asia, were reassured by a global marketing campaign to support Suominen Nonwovens statement of, ‘Now the biggest name in nonwovens for wipes.’”
As the biggest producer of nonwovens for wipes, Suominen this year launched the “We Love Wipes” campaign to strengthen its understanding of the need of consumers and consequently ensure it is better able to serve its customers and increase the share of the higher value added products in its portfolio. Bolstered by a campaign hub website at www.welovewipes.com as well as a variety of social media activities, We Love Wipes also aims to raise the overall awareness of wipes and the wide range of uses for them.
“Innovation at Suominen is not just about products but about changing the way business is done and challenging traditional long-held views. The market is very dynamic and it is clearly in our interest to become faster to market with the right products. This is one aspect we aim to further improve, with the support from the consumers, the genuine experts of wipes,” says Jean-Marie Becker, executive vice president of Suominen Nonwovens at the time of the campaign launch.
On the new product front, in April Suominen launched Exodus and Hercules Nonwovens for personal care and industrial applications as part of its strategy to strengthen its share of the higher value-added products. Both products provide customers with a quality performance in industrial and household wipes and contain cellulose and synthetic fibers, a combination that ensures optimized strength and absorbency with dimensional strength.
“Despite its toughness, Hercules Nonwoven has a soft, cloth-like feel, which makes it perfect also for cleaning hands quickly and conveniently while working. Both are available in four basis weights.
“We are always improving nonwoven product characteristics in such areas as texture, feel and cleaning through enhancements to the technologies we use in our processes,” Brown says.
Another area strong on Suominen’s radar is flushability. In June, the company said it would invest €2.5 million to increase the production capacity of Hydraspun substrates, some of which are defined as flushable by industry guidelines developed by INDA and EDANA, the industry associations.
“Suominen is constantly looking at the markets in which it operates,” Brown says. “Where we see opportunity to add value with nonwoven products will determine where we take our future offering.”
Helsinki, Finland
www.suominen.fi
2013 Nonwovens Sales: $515 million
Key Personnel
Nina Kopola, president and CEO; Tapio Engstrom, senior vice president,CFO; Timo Hiekkaranta, senior vice president, convenience; Lynda Kelly, senior vice president, care; Hannu Sivula, senior vice president, HR; Mimoun Saim, senior vice president, operations EMEA, Larry Kinn, senior vice president, operations Americas; Margareta Huldén, vice president, R&D; Saara Soderberg, vice president, marketing and product management; Roberto Pedoja, vice president, technology and investments; Dan Dunbar, vice president, sourcing, Timo Rautakorpi, vice president, CIO; Anu Heinonen, vice president, corporate communications and investor relations.
Plants
Bethune, SC, U.S.; Green Bay, WI, U.S.; Windsor Locks, CT, U.S.; Paulínia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, thermal bonded, carded, hydroentangled, SPC
Major Markets
Wiping, medical, hygiene
The July 2014 divestment of its flexible packaging business unit made Suominen a company completely devoted to nonwovens. As a leading producer of nonwovens for wipes, Suominen is now fully concentrated on executing its nonwovens strategy, according to CEO Nina Kopola, and a significant part of this strategy is growing its business in areas with increased value-added; both beyond wipes and in the specific segments in wiping.
These efforts were well illustrated by Suominen’s announcement in September 2013 that it would reshape its corporate structure, dividing its nonwovens unit into two business areas, Convenience and Care. The larger of the two units, Convenience, generating some 90% of the company’s net sales, focuses on serving customers mainly in wipes but also in travel and catering segments while the Care business area targets customers in medical and hygiene segments.
“Reshaping the company structure and operating model is an essential and, at the same time, logical step in the strategic path we have chosen,” Kopola said at the time of the restructuring announcement. “Among other important objectives, we seek to speed up our capability to create new business and launch new products with higher value added to the market. We will, on top of our leadership presence in wipes, actively utilize that current position with new and exciting products to strengthen our share in the medical and hygiene segments as well. In May, Lynda Kelly joined Suominen as senior vice president for Care business area, adding strong expertise and experience in medical and hygiene business in Suominen’s management.”
Suominen also continues to reinforce its globally leading position in the wipes business. Also in wiping, the company seeks to increase the share of products with higher added value, for instance through investing in the growth of flushables. In spring 2014, Suominen completed its investment in the capacity increase of flushable nonwovens in its Windsor Locks, CT site in the U.S. Further, the company expanded the flushables manufacturing collaboration with Ahlstrom at their Stalldalen, Sweden plant.
In March 2014, Suominen announced that its Hydraspun Dispersible Substrates flushable technology, which was first developed in the late 1990s, had passed the third generation flushability assessment protocol jointly developed by INDA and EDANA. This protocol was introduced in 2013 and allows products to claim flushability in wastewater systems. At INDEX14, Suominen also launched a new registered logo to depict to consumers the flushability of Hydraspun substrates. Suominen continues to take various measures in order to retain its leadership position in this segment.
On the new product front, in May 2014 Suominen launched Biolace Skin to the home spa market. This range of nonwovens can be used in home spa applications such as facial sheet masks, cosmetic pads, patches and exfoliation sheets. The new product Biolace Skin was developed in cooperation with Austrian company Lenzing AG using their Tencel Skin fibers with unique nano fibril structure. The combination of Suominen’s nonwovens technology and Lenzing’s Tencel Skin fibers has resulted in a product that has a smooth and silky touch, flexibility and high strength to maintain facial shape and excellent lotion management.
Another example of the company’s activities outside of its traditional wipes is the introduction of Novolino nonwovens for tabletop products in February 2014. This range of substrates brings a new dimension to the tabletop market. With its soft and silky touch, Novolino nonwovens offer users a disposable alternative to traditional linen or other textile napkins.
“The demand for nonwovens for wiping, medical and hygiene applications is high in volume and enjoys a healthy growth globally, driven by megatrends such as middle class growth, aging of the population and urbanization,” says Kopola. “There are however differences in both regional demand and supply and thus in the balance of the two. The spunlace supply in Europe continues to exceed the regional demand. As a result, margins in oversupplied markets like Europe tend to be tight for the entire supply chain.”
Suominen became a leading maker of nonwovens for wiping applications in the world in 2011 when it acquired the assets of Ahlstrom’s home and personal business area in North America and Europe; and reinforced this position when the acquisition of Ahlstrom’s Brazilian operations was finalized in 2014. The deal provided Suominen with a foothold in a new, dynamic market region.
“We remain very committed to the wipes market,” Kopola says. “The reasons for this are clear—it is a healthy, growing industry. There are continuous possibilities for expansion and we have a long history serving this market.”
www.suominen.fi
2013 Nonwovens Sales: $515 million
Key Personnel
Nina Kopola, president and CEO; Tapio Engstrom, senior vice president,CFO; Timo Hiekkaranta, senior vice president, convenience; Lynda Kelly, senior vice president, care; Hannu Sivula, senior vice president, HR; Mimoun Saim, senior vice president, operations EMEA, Larry Kinn, senior vice president, operations Americas; Margareta Huldén, vice president, R&D; Saara Soderberg, vice president, marketing and product management; Roberto Pedoja, vice president, technology and investments; Dan Dunbar, vice president, sourcing, Timo Rautakorpi, vice president, CIO; Anu Heinonen, vice president, corporate communications and investor relations.
Plants
Bethune, SC, U.S.; Green Bay, WI, U.S.; Windsor Locks, CT, U.S.; Paulínia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, thermal bonded, carded, hydroentangled, SPC
Major Markets
Wiping, medical, hygiene
The July 2014 divestment of its flexible packaging business unit made Suominen a company completely devoted to nonwovens. As a leading producer of nonwovens for wipes, Suominen is now fully concentrated on executing its nonwovens strategy, according to CEO Nina Kopola, and a significant part of this strategy is growing its business in areas with increased value-added; both beyond wipes and in the specific segments in wiping.
These efforts were well illustrated by Suominen’s announcement in September 2013 that it would reshape its corporate structure, dividing its nonwovens unit into two business areas, Convenience and Care. The larger of the two units, Convenience, generating some 90% of the company’s net sales, focuses on serving customers mainly in wipes but also in travel and catering segments while the Care business area targets customers in medical and hygiene segments.
“Reshaping the company structure and operating model is an essential and, at the same time, logical step in the strategic path we have chosen,” Kopola said at the time of the restructuring announcement. “Among other important objectives, we seek to speed up our capability to create new business and launch new products with higher value added to the market. We will, on top of our leadership presence in wipes, actively utilize that current position with new and exciting products to strengthen our share in the medical and hygiene segments as well. In May, Lynda Kelly joined Suominen as senior vice president for Care business area, adding strong expertise and experience in medical and hygiene business in Suominen’s management.”
Suominen also continues to reinforce its globally leading position in the wipes business. Also in wiping, the company seeks to increase the share of products with higher added value, for instance through investing in the growth of flushables. In spring 2014, Suominen completed its investment in the capacity increase of flushable nonwovens in its Windsor Locks, CT site in the U.S. Further, the company expanded the flushables manufacturing collaboration with Ahlstrom at their Stalldalen, Sweden plant.
In March 2014, Suominen announced that its Hydraspun Dispersible Substrates flushable technology, which was first developed in the late 1990s, had passed the third generation flushability assessment protocol jointly developed by INDA and EDANA. This protocol was introduced in 2013 and allows products to claim flushability in wastewater systems. At INDEX14, Suominen also launched a new registered logo to depict to consumers the flushability of Hydraspun substrates. Suominen continues to take various measures in order to retain its leadership position in this segment.
On the new product front, in May 2014 Suominen launched Biolace Skin to the home spa market. This range of nonwovens can be used in home spa applications such as facial sheet masks, cosmetic pads, patches and exfoliation sheets. The new product Biolace Skin was developed in cooperation with Austrian company Lenzing AG using their Tencel Skin fibers with unique nano fibril structure. The combination of Suominen’s nonwovens technology and Lenzing’s Tencel Skin fibers has resulted in a product that has a smooth and silky touch, flexibility and high strength to maintain facial shape and excellent lotion management.
Another example of the company’s activities outside of its traditional wipes is the introduction of Novolino nonwovens for tabletop products in February 2014. This range of substrates brings a new dimension to the tabletop market. With its soft and silky touch, Novolino nonwovens offer users a disposable alternative to traditional linen or other textile napkins.
“The demand for nonwovens for wiping, medical and hygiene applications is high in volume and enjoys a healthy growth globally, driven by megatrends such as middle class growth, aging of the population and urbanization,” says Kopola. “There are however differences in both regional demand and supply and thus in the balance of the two. The spunlace supply in Europe continues to exceed the regional demand. As a result, margins in oversupplied markets like Europe tend to be tight for the entire supply chain.”
Suominen became a leading maker of nonwovens for wiping applications in the world in 2011 when it acquired the assets of Ahlstrom’s home and personal business area in North America and Europe; and reinforced this position when the acquisition of Ahlstrom’s Brazilian operations was finalized in 2014. The deal provided Suominen with a foothold in a new, dynamic market region.
“We remain very committed to the wipes market,” Kopola says. “The reasons for this are clear—it is a healthy, growing industry. There are continuous possibilities for expansion and we have a long history serving this market.”
Suominen Corporation
Helsinki, Finland
www.suominen.fi
2014 Nonwovens Sales: $442 million
Key Personnel
Nina Kopola, president & CEO and acting senior vice president, Convenience; Tapio Engstrom, senior vice president, CFO; Lynda Kelly, senior vice president, Care; Hannu Sivula, senior vice president, HR; Mimoun Saim, senior vice president, Operations EMEA; Larry Kinn, senior vice president, Operations Americas; Margareta Huldén, vice president, R&D; Saara Soderberg, vice president, marketing and product management; Roberto Pedoja, vice president, Tech. & Investments; Dan Dunbar, vice president, Sourcing, Timo Rautakorpi, vice president, CIO; Anu Heinonen, vice president, Corp. Communications & Investor Relations
Plants
Bethune, SC; Green Bay, WI; Windsor Locks, CT; Paulínia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, thermal bonded, carded, hydroentangled, SPC
Major Markets
Wiping, medical, hygiene
Sales continued to climb upward at Suominen as the company initiates its ambitious growth strategy across all of its businesses. The largest supplier of nonwoven substrates to the global wipes market, Suominen is currently underway with one large-scale investment in North America and smaller endeavors in Spain, Finland and Brazil to help support growth in all markets–in wipes, medical and hygiene applications.
In 2014, the company’s sales hit a record €402 million. Suominen’s executives have stated that through successful execution of its strategy, Suominen would become a company with net sales of roughly €500 million by the end of 2017. To realize this scenario, the company seeks to increase both its sales volumes and the share of products with higher value-added in its portfolio.
“It is good to keep in mind that we indeed grew slightly faster than the market in 2014, even though our main focus was elsewhere—in corporate transformation, building of shared company culture and improving profitability,” says president & CEO Nina Kopola. “The outcome of our diligent work to execute strategy and transform the company was also reflected in Suominen’s operating profit, which increased to €26.9 million.”
One of the key milestones for Suominen in 2014 was the finalization of the acquisition of a Paulínia facility in Brazil from Ahlstrom, a deal that was announced along with the rest of the acquisition of Ahlstrom’s Home & Personal business in 2011 but took longer to execute than the businesses in North America and Europe. Already, Suominen is underway with a plan to expand this plant’s product offering to strengthen its position in the South American wipes market and to enable supply also to medical and hygiene markets.
“The country’s economy may struggle today but we do see Brazil and the entire South American market as an attractive market offering promising opportunities for growth,” Kopola says. “The acquisition provided us a foothold in this huge market region and it further enhances our capability to serve our global customers.”
In new product news in this region, Suominen introduced Fibrella Perf, a new range of apertured substrates for the South American medical markets.
Suominen is investing considerably in North America, which remains Suominen’s largest market—accounting for some 60% of sales—with plants in Connecticut, Wisconsin and South Carolina. In May, the company announced it would add a new wetlaid line in Bethune, SC, initially targeting household, industrial and flushable wipes market. The installation of the new line, which represents the biggest single investment in Suominen’s growth investment program, will be complete in late 2016.
Increasing Suominen’s share in key markets and growing the share of products with higher value-added materials in its portfolio are at the heart of company’s strategy for coming years. Moreover, Suominen is also seeking growth through adding capacity.
One area of considerable focus is flushable nonwovens. In addition to the new line under construction, the company added capacity in this segment in Windsor Locks, CT in 2014. Moreover, Suominen has expanded its manufacturing co-operation with Ahlstrom’s Ställdalen plant in Sweden and continues to allot considerable research and development efforts to this market.
Efforts made in product development bore fruit in January 2015 when Suominen launched the next generation product to its flushable category. Hydraspun Dispersible Plus is a substrate that breaks up more than three times faster than the standard Hydraspun Dispersible and clearly passes the INDA/EDANA 3rd edition flushability assessment test protocol. Suominen has filed a patent for the range of products.
“There is a strong consumer demand for flushable products that supports the favorable market development,” says Saara Soderberg, vice president, Marketing & Product Management. “I believe the best way for the industry to secure the business in the future is to comply with the flushability assessment test protocol and to support consumers by educating them on what is flush-friendly and what not to flush. We are confident that our range of flushable nonwovens, which we keep developing, continuously meets not only consumers’ needs but also the expectations of the municipal water systems,” she adds.
Following the divestment of its Codi Wipes and Flexible Packaging businesses in 2013 and 2014, respectively, Suominen is now entirely focused on nonwovens. In the very beginning of 2014, the company split itself into two business areas—Convenience, which represents today 92% of sales and includes the substrates for wiping applications; and Care, which comprises approximately 8% of sales and includes nonwovens for medical and hygiene markets.
“We have determinedly shaped Suominen into a 100% nonwovens company through acquisitions and divestments during the last four years,” Kopola says. “Clear focus provides us more resources to concentrate on what we are good at—developing and supplying nonwovens for customers in wiping, medical and hygiene sectors. The rationale behind the organizational renewal in the beginning of 2014 was to provide space for the growth of Care business area.”
Spunlace technology, which is central to Suominen’s operations, has promising opportunities to grow its share in selected segments within medical and hygiene, Kopola adds. “The soft, cloth-like feel of spunlaced nonwovens makes it a perfect material for all end uses close to the skin.”
One new area for Suominen is the global hygiene market, which the company is targeting with a wide range of products including Fibrella Lite, a range of lightweight spunlace products that meet the exacting requirements for a light yet stretchable materials for absorbent hygiene products.
Meanwhile, for the home spa market, Suominen is selling materials under the Biolace Skin brand and was developed in cooperation with cellulose fiber maker Lenzing. The range consists of nonwoven substrates, featuring unique attributes for applications like facial sheet masks, cosmetic pads and patches. These products can help bring the professional spa sensation to consumers in the comfort and convenience of their own home.
The development of these new product brands fall in sync with Suominen’s growth strategy. “The product brands mentioned above, together with all new products we have recently introduced to the market, bring added value to the customer and have, therefore, an essential role in our strategy, as we aim to increase the share of products with higher added values in our portfolio,” Kopola says. “In general, new products—that we have more in the pipeline—also take us step by step closer to our vision of becoming a market driven product leader.”
Helsinki, Finland
www.suominen.fi
2014 Nonwovens Sales: $442 million
Key Personnel
Nina Kopola, president & CEO and acting senior vice president, Convenience; Tapio Engstrom, senior vice president, CFO; Lynda Kelly, senior vice president, Care; Hannu Sivula, senior vice president, HR; Mimoun Saim, senior vice president, Operations EMEA; Larry Kinn, senior vice president, Operations Americas; Margareta Huldén, vice president, R&D; Saara Soderberg, vice president, marketing and product management; Roberto Pedoja, vice president, Tech. & Investments; Dan Dunbar, vice president, Sourcing, Timo Rautakorpi, vice president, CIO; Anu Heinonen, vice president, Corp. Communications & Investor Relations
Plants
Bethune, SC; Green Bay, WI; Windsor Locks, CT; Paulínia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, thermal bonded, carded, hydroentangled, SPC
Major Markets
Wiping, medical, hygiene
Sales continued to climb upward at Suominen as the company initiates its ambitious growth strategy across all of its businesses. The largest supplier of nonwoven substrates to the global wipes market, Suominen is currently underway with one large-scale investment in North America and smaller endeavors in Spain, Finland and Brazil to help support growth in all markets–in wipes, medical and hygiene applications.
In 2014, the company’s sales hit a record €402 million. Suominen’s executives have stated that through successful execution of its strategy, Suominen would become a company with net sales of roughly €500 million by the end of 2017. To realize this scenario, the company seeks to increase both its sales volumes and the share of products with higher value-added in its portfolio.
“It is good to keep in mind that we indeed grew slightly faster than the market in 2014, even though our main focus was elsewhere—in corporate transformation, building of shared company culture and improving profitability,” says president & CEO Nina Kopola. “The outcome of our diligent work to execute strategy and transform the company was also reflected in Suominen’s operating profit, which increased to €26.9 million.”
One of the key milestones for Suominen in 2014 was the finalization of the acquisition of a Paulínia facility in Brazil from Ahlstrom, a deal that was announced along with the rest of the acquisition of Ahlstrom’s Home & Personal business in 2011 but took longer to execute than the businesses in North America and Europe. Already, Suominen is underway with a plan to expand this plant’s product offering to strengthen its position in the South American wipes market and to enable supply also to medical and hygiene markets.
“The country’s economy may struggle today but we do see Brazil and the entire South American market as an attractive market offering promising opportunities for growth,” Kopola says. “The acquisition provided us a foothold in this huge market region and it further enhances our capability to serve our global customers.”
In new product news in this region, Suominen introduced Fibrella Perf, a new range of apertured substrates for the South American medical markets.
Suominen is investing considerably in North America, which remains Suominen’s largest market—accounting for some 60% of sales—with plants in Connecticut, Wisconsin and South Carolina. In May, the company announced it would add a new wetlaid line in Bethune, SC, initially targeting household, industrial and flushable wipes market. The installation of the new line, which represents the biggest single investment in Suominen’s growth investment program, will be complete in late 2016.
Increasing Suominen’s share in key markets and growing the share of products with higher value-added materials in its portfolio are at the heart of company’s strategy for coming years. Moreover, Suominen is also seeking growth through adding capacity.
One area of considerable focus is flushable nonwovens. In addition to the new line under construction, the company added capacity in this segment in Windsor Locks, CT in 2014. Moreover, Suominen has expanded its manufacturing co-operation with Ahlstrom’s Ställdalen plant in Sweden and continues to allot considerable research and development efforts to this market.
Efforts made in product development bore fruit in January 2015 when Suominen launched the next generation product to its flushable category. Hydraspun Dispersible Plus is a substrate that breaks up more than three times faster than the standard Hydraspun Dispersible and clearly passes the INDA/EDANA 3rd edition flushability assessment test protocol. Suominen has filed a patent for the range of products.
“There is a strong consumer demand for flushable products that supports the favorable market development,” says Saara Soderberg, vice president, Marketing & Product Management. “I believe the best way for the industry to secure the business in the future is to comply with the flushability assessment test protocol and to support consumers by educating them on what is flush-friendly and what not to flush. We are confident that our range of flushable nonwovens, which we keep developing, continuously meets not only consumers’ needs but also the expectations of the municipal water systems,” she adds.
Following the divestment of its Codi Wipes and Flexible Packaging businesses in 2013 and 2014, respectively, Suominen is now entirely focused on nonwovens. In the very beginning of 2014, the company split itself into two business areas—Convenience, which represents today 92% of sales and includes the substrates for wiping applications; and Care, which comprises approximately 8% of sales and includes nonwovens for medical and hygiene markets.
“We have determinedly shaped Suominen into a 100% nonwovens company through acquisitions and divestments during the last four years,” Kopola says. “Clear focus provides us more resources to concentrate on what we are good at—developing and supplying nonwovens for customers in wiping, medical and hygiene sectors. The rationale behind the organizational renewal in the beginning of 2014 was to provide space for the growth of Care business area.”
Spunlace technology, which is central to Suominen’s operations, has promising opportunities to grow its share in selected segments within medical and hygiene, Kopola adds. “The soft, cloth-like feel of spunlaced nonwovens makes it a perfect material for all end uses close to the skin.”
One new area for Suominen is the global hygiene market, which the company is targeting with a wide range of products including Fibrella Lite, a range of lightweight spunlace products that meet the exacting requirements for a light yet stretchable materials for absorbent hygiene products.
Meanwhile, for the home spa market, Suominen is selling materials under the Biolace Skin brand and was developed in cooperation with cellulose fiber maker Lenzing. The range consists of nonwoven substrates, featuring unique attributes for applications like facial sheet masks, cosmetic pads and patches. These products can help bring the professional spa sensation to consumers in the comfort and convenience of their own home.
The development of these new product brands fall in sync with Suominen’s growth strategy. “The product brands mentioned above, together with all new products we have recently introduced to the market, bring added value to the customer and have, therefore, an essential role in our strategy, as we aim to increase the share of products with higher added values in our portfolio,” Kopola says. “In general, new products—that we have more in the pipeline—also take us step by step closer to our vision of becoming a market driven product leader.”
Helsinki, Finland
www.suominen.fi
2015 Nonwovens Sales: $492 million
Key Personnel
Nina Kopola, president & CEO; Tapio Engstrom, senior vice president, CFO; Lynda Kelly, senior vice president, Care; Ernesto Levy, senior vice president, Convenience; Hannu Sivula, senior vice president, HR; Mimoun Saim, senior vice president, Operations EMEA; Larry Kinn, senior vice president, Operations Americas; Margareta Huldén, vice president, R&D; Saara Soderberg, vice president, marketing and product management; Roberto Pedoja, vice president, Tech. & Investments; Dan Dunbar, vice president, Sourcing, Timo Rautakorpi, vice president, CIO; Anu Heinonen, vice president, corporate communications & investor relations.
Plants
Bethune, SC; Green Bay, WI; Windsor Locks, CT; Paulínia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, thermal bonded, carded, hydroentangled, SPC
Major Markets
Wiping, medical, hygiene
In the midst of a three-year global growth strategy, Suominen continues to aim at growth as it awaits the completion of a major U.S. investment as well as smaller upgrades in Europe and South America. The manufacturer of primarily spunlaced nonwovens, headquartered in Helsinki, Finland, began its three-year global growth strategy in the beginning of 2015. The company originally announced it would invest €30-50 million in this program but in August 2016 the company reevaluated the scope of the total program, estimating that its total value may exceed €60 million due to an unexpectedly rapid increase in labor costs in South Carolina, among other things. Key tenets of the program, which is designed to help Suominen deliver superior value in select market areas and hopefully drive its sales upward to roughly €500 million before its completion, include the construction of a new line dedicated largely to nonwovens for household and workplace use as well as flushable substrates in Bethune, SC as well as upgrades to its sites in Alicante, Spain and Paulinia, Brazil.
In 2015, Suominen’s sales continued to climb, increasing 10% to €444 million, thanks to the strength of the U.S. dollar. With sites in the U.S., Europe and South America, Suominen continues to focus on new product development and investment—in both its sites and its people—to achieve growth.
“We definitely focus on research and development through investment in talent and processes bringing new products to our customers,” explains Saara Söderberg, vice president, marketing and product management.
Currently, Suominen operates through two business areas: Convenience and Care. Convenience is by far the larger of the two business areas representing about 92% of sales in 2015 and comprising Suominen’s global wipes businesses. Care, meanwhile, includes Suominen’s activities in the hygiene and medical markets. While it represented just 8% of the company’s global sales in 2015, a strong focus on new product development should help Suominen grow this business in coming years.
“In wipes we are an established player but in hygiene and medical applications, we are a relative newcomer,” Söderberg says. “But we are seeing spunlace providing a nice substitute for spunbond nonwovens in some areas of the diaper—not in the backing or in the core but in the surface areas that touch the skin.”
Within this segment, Fibrella Move nonwovens was launched in October 2015 for the global hygiene market. The material uses state-of-the-art forming, bonding and finishing technologies, offering a major step forward in fluid acquisition and management for feminine hygiene and other absorbent hygiene applications.
“Fibrella Move is another new statement product from Suominen which raises the bar of expectations for materials in the construction of absorbent hygiene products,” says Lynda Kelly, senior vice president, Care. “This launch is a further step in our company’s vision to offer new, high performance nonwovens in our care business, meeting the important standards of our converters and consumers.
Meanwhile, in the medical arena, Suominen has introduced three new Fibrella products. Fibrella Zorb and Fibrella Zorb+ bring added value benefits to the critical care environment and Fibrella Perf is a range of nonwovens for wound care and gentle cleansing with an aperture structure that makes them soft and skin friendly.
Back in its core business, wipes, Suominen has focused on balancing its portfolio within this market. Its largest market for wipes, baby wipes, represented 38% of wipes sales last year, and the company would like to see growth come from other wipe products like personal care, household or industrial.
As part of its efforts to fuel growth in these markets, in April, Suominen launched suominen@work, a product line designed to serve manufacturers of workplace wipes—used in places like restaurants, healthcare facilities and factories. “The key to a good workplace wipe is to provide the user with a time-saving solution that delivers required functionality and provides tangible cost savings in use,” says Eileen Calder, product manager for the workplace market segment.Another category strong on Suominen’s radar is flushable wipes. The company has been offering a product to this category, under the brand name Hydraspun since the 1990s and has worked to continuously improve the technology ever since. In early 2015, the company introduced Hydraspun Dispersible Plus, which breaks up more than three times more quickly than the standard Hydraspun Dispersible substrate, according to the company.
Suominen’s optimism over this technology and the market it serves has best been illustrated by the construction of a new wetlaid in Bethune, SC, which is on track to be installed by the end of this year. According to Suominen, the new wetlaid line, which represents the lion’s share of the company’s growth investment program, will take wetlaid technology to a totally new level in the industry, providing customers with a unique advantages by adding exquisite capabilities for designing nonwovens substrates. This will allow Suominen to increase its share of products with high added value, which is a key component of its growth strategy.
The new line would provide a broad basis weight range and extend from nonwovens made of 100% cellulosic fibers to reinforced composite products and 100% synthetic fiber products—their features being anything from dispersible to durable.
In other investment news, Suominen has upgraded plants in Paulínia, Brazil and Alicante, Spain. In Brazil, an existing line has been upgraded to expand its role in the South American wipes market and diversify its product output for the hygiene and medical markets, while in Spain the investment is targeted at medical and industrial wipes applications.
www.suominen.fi
2015 Nonwovens Sales: $492 million
Key Personnel
Nina Kopola, president & CEO; Tapio Engstrom, senior vice president, CFO; Lynda Kelly, senior vice president, Care; Ernesto Levy, senior vice president, Convenience; Hannu Sivula, senior vice president, HR; Mimoun Saim, senior vice president, Operations EMEA; Larry Kinn, senior vice president, Operations Americas; Margareta Huldén, vice president, R&D; Saara Soderberg, vice president, marketing and product management; Roberto Pedoja, vice president, Tech. & Investments; Dan Dunbar, vice president, Sourcing, Timo Rautakorpi, vice president, CIO; Anu Heinonen, vice president, corporate communications & investor relations.
Plants
Bethune, SC; Green Bay, WI; Windsor Locks, CT; Paulínia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, thermal bonded, carded, hydroentangled, SPC
Major Markets
Wiping, medical, hygiene
In the midst of a three-year global growth strategy, Suominen continues to aim at growth as it awaits the completion of a major U.S. investment as well as smaller upgrades in Europe and South America. The manufacturer of primarily spunlaced nonwovens, headquartered in Helsinki, Finland, began its three-year global growth strategy in the beginning of 2015. The company originally announced it would invest €30-50 million in this program but in August 2016 the company reevaluated the scope of the total program, estimating that its total value may exceed €60 million due to an unexpectedly rapid increase in labor costs in South Carolina, among other things. Key tenets of the program, which is designed to help Suominen deliver superior value in select market areas and hopefully drive its sales upward to roughly €500 million before its completion, include the construction of a new line dedicated largely to nonwovens for household and workplace use as well as flushable substrates in Bethune, SC as well as upgrades to its sites in Alicante, Spain and Paulinia, Brazil.
In 2015, Suominen’s sales continued to climb, increasing 10% to €444 million, thanks to the strength of the U.S. dollar. With sites in the U.S., Europe and South America, Suominen continues to focus on new product development and investment—in both its sites and its people—to achieve growth.
“We definitely focus on research and development through investment in talent and processes bringing new products to our customers,” explains Saara Söderberg, vice president, marketing and product management.
Currently, Suominen operates through two business areas: Convenience and Care. Convenience is by far the larger of the two business areas representing about 92% of sales in 2015 and comprising Suominen’s global wipes businesses. Care, meanwhile, includes Suominen’s activities in the hygiene and medical markets. While it represented just 8% of the company’s global sales in 2015, a strong focus on new product development should help Suominen grow this business in coming years.
“In wipes we are an established player but in hygiene and medical applications, we are a relative newcomer,” Söderberg says. “But we are seeing spunlace providing a nice substitute for spunbond nonwovens in some areas of the diaper—not in the backing or in the core but in the surface areas that touch the skin.”
Within this segment, Fibrella Move nonwovens was launched in October 2015 for the global hygiene market. The material uses state-of-the-art forming, bonding and finishing technologies, offering a major step forward in fluid acquisition and management for feminine hygiene and other absorbent hygiene applications.
“Fibrella Move is another new statement product from Suominen which raises the bar of expectations for materials in the construction of absorbent hygiene products,” says Lynda Kelly, senior vice president, Care. “This launch is a further step in our company’s vision to offer new, high performance nonwovens in our care business, meeting the important standards of our converters and consumers.
Meanwhile, in the medical arena, Suominen has introduced three new Fibrella products. Fibrella Zorb and Fibrella Zorb+ bring added value benefits to the critical care environment and Fibrella Perf is a range of nonwovens for wound care and gentle cleansing with an aperture structure that makes them soft and skin friendly.
Back in its core business, wipes, Suominen has focused on balancing its portfolio within this market. Its largest market for wipes, baby wipes, represented 38% of wipes sales last year, and the company would like to see growth come from other wipe products like personal care, household or industrial.
As part of its efforts to fuel growth in these markets, in April, Suominen launched suominen@work, a product line designed to serve manufacturers of workplace wipes—used in places like restaurants, healthcare facilities and factories. “The key to a good workplace wipe is to provide the user with a time-saving solution that delivers required functionality and provides tangible cost savings in use,” says Eileen Calder, product manager for the workplace market segment.Another category strong on Suominen’s radar is flushable wipes. The company has been offering a product to this category, under the brand name Hydraspun since the 1990s and has worked to continuously improve the technology ever since. In early 2015, the company introduced Hydraspun Dispersible Plus, which breaks up more than three times more quickly than the standard Hydraspun Dispersible substrate, according to the company.
Suominen’s optimism over this technology and the market it serves has best been illustrated by the construction of a new wetlaid in Bethune, SC, which is on track to be installed by the end of this year. According to Suominen, the new wetlaid line, which represents the lion’s share of the company’s growth investment program, will take wetlaid technology to a totally new level in the industry, providing customers with a unique advantages by adding exquisite capabilities for designing nonwovens substrates. This will allow Suominen to increase its share of products with high added value, which is a key component of its growth strategy.
The new line would provide a broad basis weight range and extend from nonwovens made of 100% cellulosic fibers to reinforced composite products and 100% synthetic fiber products—their features being anything from dispersible to durable.
In other investment news, Suominen has upgraded plants in Paulínia, Brazil and Alicante, Spain. In Brazil, an existing line has been upgraded to expand its role in the South American wipes market and diversify its product output for the hygiene and medical markets, while in Spain the investment is targeted at medical and industrial wipes applications.
Helsinki, Finland
www.suominen.fi
2016 Nonwoven Sales: $475 million
Key Personnel
Nina Kopola, president & CEO; Tapio Engström, senior vice president CFO; Lynda Kelly, senior vice president, Care; Ernesto Levy, senior vice president, Convenience; Hanny Sivula, senior vice president, HR; Mimoun Saïm, senior vice president, Global Operations; Larry Kinn, senior vice president, Operational Excellence; Markku Koivisto, senior vice president, chief technology officer; Saara Soderberg, vice president, marketing and product management; Roberto Pedoja, vice president, Tech & Investments; Dan Dunbar, vice president, Sourcing, Timo Rautakorpi, vice president, CIO; Anu Heinonen, vice president, Corporate Communications and Investor Relations
Plants
Bethune, SC; Green Bay, WI; Windsor Locks, CT; Paulinia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, wetlaid, thermal bonded, carded, hydroentangled, SPC
Major Markets
Wipes, medical, hygiene
Fresh off a successful three-year growth strategy, which included investment in a new U.S. line as well as retrofits to existing assets in Spain, Brazil and Finland, Suominen Corporation has unveiled its strategy for the 2017-2021 time period. Central to this strategy is achieving profitable growth as well as its continuous effort to increase the share of its products with high added value. To help it achieve these goals, Suominen will rely on the robust competitive edge it developed during this previous growth strategy.
“From now on we can draw on the determined work done in past years,” says Nina Kopola, president and CEO. “Our new investments in product development, marketing and customer interface as well as the largest investments we have ever made in manufacturing technologies on three continents have created a sustainable competitive edge for Suominen and, consequently, a good foundation for our future success. Moreover, the market outlook remains favorable—according to recent independent forecasts, demand for nonwovens will continue to grow, especially in the applications Suominen is focusing on.”
During the strategic period, Suominen will also examine its opportunities to expand its business operations to new regions, particularly in the Asia-Pacific, which is the largest nonwovens market in the world. Suominen currently operates in the Asian markets through sales agents.
Back in the U.S., a new wetlaid nonwovens line recently started up in Bethune, SC, and is a major part of Suominen’s expansion plans. At a reported cost of over €50 million, the new line represents the largest single investment in Suominen’s history, and the new line will continue its growth trajectory in markets as diverse as industrial, household and flushable wipes.
Currently, nonwovens for wipes comprise the lion’s share of Suominen’s sales, led by the baby wipes market which represents about 38% of sales and personal care, which contributed 25% of sales last year. Suominen aims to continue to be strong in baby wipes while growing more rapidly in value added wipe categories like workplace, personal care and household.
“There will be no large or sharp movement or change in direction,” says Saara Söderberg, vice president of marketing and product management. “The direction set is the direction we will continue.”
Part of Suominen’s past direction, or strategy, has been diversification and Söderberg reports that the company’s efforts to target new products with more value added materials has been successful, as they now comprise about 62% of total sales, up from 53% in 2012.
These efforts have led to the creation of products such as Genesis Pro All Purpose, a professional wiping substrate that was created using Suominen’s latest wetlaid technology. Among its attributes are strength, thickness, unbeatable absorption capacity. It is also lightweight but can outperform its heavier competitors in key performance areas.
“This is not a typical nonwoven product but a typical Suominen product since it was engineered with the end-user in mind,” says Eileen Calder, product manager for Workplace applications at Suominen. “That is why Genesis Pro All Purpose delivers results with speed and ease in everyday cleaning tasks that are critical to business performance. The professional employees may just focus on getting the job done, confident that the wipes do not let them down, nor in light neither heavy-duty tasks.”
Genesis Pro All Purpose is available globally and is part of Suominen@work nonwoven product offering, which was officially launched in May 2016 as a line for workplace applications.
Also in the industrial wiping space, Suominen launched Airlace for Workplace in early January 2017. This new product, possible through line improvements in Alicante, Spain, is designed for both wet and dry wipe products where it delivers a superior combination of strength, absorbency and low linting with its optimum blend of cellulose and synthetic fibers. The integration of pulp makes it ideal for cleaning oil spills and grease.
Suominen’s new Designer Series also helps diversify the company’s offerings to the wipes market. Featuring high resolution patterns, the Designer Series was designed by professional designers to fulfill the modern day needs of both consumers and brands when it comes to wipes materials. The wipes substrates’ feature distinct patterns clearly indicating softness or cleaning efficiency or both.
“When the team started with the Designer Series, we took an approach no other company in the nonwovens industry had taken before. We partnered with professional designers whose interpretation really challenged Suominen to test what its improved production technology is capable of,” Vish Mazumder, product development manager, says.
In addition to product development, Suominen is diversifying its market focus. In 2014, the company split into two divisions, Convenience and Care. While Convenience contains the bulk of Suominen’s business, 92% of sales, and represents its more established wipes businesses, Care, representing just 8% of sales, is committed to broadening Suominen’s role in markets beyond wipes like medical and hygiene applications.
“It is small and they are in a position of challenger as they build relationships with new customers,” Söderberg says. “There are very different customers compared to the wipes business, and building relationships takes time.”
This business received a boost in 2016 when its Fibrella Lite product received the RISE Durable Product Innovation Award. Fibrella Lite is a spunlace product that combines strength, softness and stretchability while remaining light weight and is used as a stretchable component in absorbent hygiene materials.
Other key products in the Care division include Fibrella Zorb for surgical wipes, Fibrella Perf for woundcare and Fibrella Wrap, a material for undercast paddings and cushions, which is sold in South America.
“In South America, cotton wadding is the most typical material used under casts and in wound care but it has two major weaknesses: it has no strength and it can be difficult to apply for the clinicians,” says Marika Mäkilä, product manager for Medical applications at Suominen. “Fibrella Wrap has no such weaknesses. Its safety and cleanliness is proven and when we add Suominen’s local production into the mix, we may say that Fibrella Wrap is the superior padding material available in the market.”
Products like Fibrella will help Suominen to expand its role in the spunlace market as new capacity investments continue to drive up supply. “As we focus on more value added technology, the path ahead of us will be strong,” Söderberg says.
www.suominen.fi
2016 Nonwoven Sales: $475 million
Key Personnel
Nina Kopola, president & CEO; Tapio Engström, senior vice president CFO; Lynda Kelly, senior vice president, Care; Ernesto Levy, senior vice president, Convenience; Hanny Sivula, senior vice president, HR; Mimoun Saïm, senior vice president, Global Operations; Larry Kinn, senior vice president, Operational Excellence; Markku Koivisto, senior vice president, chief technology officer; Saara Soderberg, vice president, marketing and product management; Roberto Pedoja, vice president, Tech & Investments; Dan Dunbar, vice president, Sourcing, Timo Rautakorpi, vice president, CIO; Anu Heinonen, vice president, Corporate Communications and Investor Relations
Plants
Bethune, SC; Green Bay, WI; Windsor Locks, CT; Paulinia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, wetlaid, thermal bonded, carded, hydroentangled, SPC
Major Markets
Wipes, medical, hygiene
Fresh off a successful three-year growth strategy, which included investment in a new U.S. line as well as retrofits to existing assets in Spain, Brazil and Finland, Suominen Corporation has unveiled its strategy for the 2017-2021 time period. Central to this strategy is achieving profitable growth as well as its continuous effort to increase the share of its products with high added value. To help it achieve these goals, Suominen will rely on the robust competitive edge it developed during this previous growth strategy.
“From now on we can draw on the determined work done in past years,” says Nina Kopola, president and CEO. “Our new investments in product development, marketing and customer interface as well as the largest investments we have ever made in manufacturing technologies on three continents have created a sustainable competitive edge for Suominen and, consequently, a good foundation for our future success. Moreover, the market outlook remains favorable—according to recent independent forecasts, demand for nonwovens will continue to grow, especially in the applications Suominen is focusing on.”
During the strategic period, Suominen will also examine its opportunities to expand its business operations to new regions, particularly in the Asia-Pacific, which is the largest nonwovens market in the world. Suominen currently operates in the Asian markets through sales agents.
Back in the U.S., a new wetlaid nonwovens line recently started up in Bethune, SC, and is a major part of Suominen’s expansion plans. At a reported cost of over €50 million, the new line represents the largest single investment in Suominen’s history, and the new line will continue its growth trajectory in markets as diverse as industrial, household and flushable wipes.
Currently, nonwovens for wipes comprise the lion’s share of Suominen’s sales, led by the baby wipes market which represents about 38% of sales and personal care, which contributed 25% of sales last year. Suominen aims to continue to be strong in baby wipes while growing more rapidly in value added wipe categories like workplace, personal care and household.
“There will be no large or sharp movement or change in direction,” says Saara Söderberg, vice president of marketing and product management. “The direction set is the direction we will continue.”
Part of Suominen’s past direction, or strategy, has been diversification and Söderberg reports that the company’s efforts to target new products with more value added materials has been successful, as they now comprise about 62% of total sales, up from 53% in 2012.
These efforts have led to the creation of products such as Genesis Pro All Purpose, a professional wiping substrate that was created using Suominen’s latest wetlaid technology. Among its attributes are strength, thickness, unbeatable absorption capacity. It is also lightweight but can outperform its heavier competitors in key performance areas.
“This is not a typical nonwoven product but a typical Suominen product since it was engineered with the end-user in mind,” says Eileen Calder, product manager for Workplace applications at Suominen. “That is why Genesis Pro All Purpose delivers results with speed and ease in everyday cleaning tasks that are critical to business performance. The professional employees may just focus on getting the job done, confident that the wipes do not let them down, nor in light neither heavy-duty tasks.”
Genesis Pro All Purpose is available globally and is part of Suominen@work nonwoven product offering, which was officially launched in May 2016 as a line for workplace applications.
Also in the industrial wiping space, Suominen launched Airlace for Workplace in early January 2017. This new product, possible through line improvements in Alicante, Spain, is designed for both wet and dry wipe products where it delivers a superior combination of strength, absorbency and low linting with its optimum blend of cellulose and synthetic fibers. The integration of pulp makes it ideal for cleaning oil spills and grease.
Suominen’s new Designer Series also helps diversify the company’s offerings to the wipes market. Featuring high resolution patterns, the Designer Series was designed by professional designers to fulfill the modern day needs of both consumers and brands when it comes to wipes materials. The wipes substrates’ feature distinct patterns clearly indicating softness or cleaning efficiency or both.
“When the team started with the Designer Series, we took an approach no other company in the nonwovens industry had taken before. We partnered with professional designers whose interpretation really challenged Suominen to test what its improved production technology is capable of,” Vish Mazumder, product development manager, says.
In addition to product development, Suominen is diversifying its market focus. In 2014, the company split into two divisions, Convenience and Care. While Convenience contains the bulk of Suominen’s business, 92% of sales, and represents its more established wipes businesses, Care, representing just 8% of sales, is committed to broadening Suominen’s role in markets beyond wipes like medical and hygiene applications.
“It is small and they are in a position of challenger as they build relationships with new customers,” Söderberg says. “There are very different customers compared to the wipes business, and building relationships takes time.”
This business received a boost in 2016 when its Fibrella Lite product received the RISE Durable Product Innovation Award. Fibrella Lite is a spunlace product that combines strength, softness and stretchability while remaining light weight and is used as a stretchable component in absorbent hygiene materials.
Other key products in the Care division include Fibrella Zorb for surgical wipes, Fibrella Perf for woundcare and Fibrella Wrap, a material for undercast paddings and cushions, which is sold in South America.
“In South America, cotton wadding is the most typical material used under casts and in wound care but it has two major weaknesses: it has no strength and it can be difficult to apply for the clinicians,” says Marika Mäkilä, product manager for Medical applications at Suominen. “Fibrella Wrap has no such weaknesses. Its safety and cleanliness is proven and when we add Suominen’s local production into the mix, we may say that Fibrella Wrap is the superior padding material available in the market.”
Products like Fibrella will help Suominen to expand its role in the spunlace market as new capacity investments continue to drive up supply. “As we focus on more value added technology, the path ahead of us will be strong,” Söderberg says.
Helsinki, Finland
www.suominen.fi
2017 Nonwovens Sales: $511 million
Key Personnel
Tapio Engström, interim president and CEO; Ernesto Levy, senior vice president, Convenience; Lynda Kelly, senior vice president, Care
Plants
Bethune, SC; Green Bay, WI; Windsor Locks, CT; Paulínia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, wetlaid, thermal bonded, carded, hydroentangled, SPC
Major Markets
Wipes, medical, hygiene
Sales continued to climb for Suominen, the world’s largest maker of spunlace nonwovens and other technologies for wipes applications, thanks to its changemaker strategy, which focuses on superior high value-added products.
“We have focused on understanding market and consumer needs and developing innovative products that meet those needs,” says Tapio Engström, interim president and CEO. “Whether it is the softest baby wipe or top sheet or even better dispersible toilet tissue, our new products are helping us deliver solid business growth.”
The healthy economic situation and solid GDP growth have created an environment conducive to this growth. Also consumer confidence remains strong in both North America and Europe, which are the company’s main market regions. Sales grew 2% to $511 million (€426 million,) while profits were lower than the 2017 level largely due to challenges facing the start-up and ramp-up of Suominen’s new line in Bethune, SC. The total negative impact of the costs of all growth investments, Bethune being the largest, was nearly $6 million in 2017. In addition, the unfavorable development of sales prices due to the competitive situation in Europe, as well as product mix change, affected gross profit and hence also the operating profit.
Despite the challenges faced in the start-up of the new line in Bethune, the company remains optimistic for its success as production volumes continue to flow in the right direction and customer demand continues to exist. Toward the second quarter of 2018, improved stability and reliability helped turned the new line positive on gross profit and the company expects the line to reach its full potential by the end of 2018.
The new line, which features proprietary technology to target key value added segments, such as workplace and household wipes, was developed after a review of megatrends, key customer trends and consumer trends, Engström says.
“This new, very flexible composites line satisfies our need for additional capacity, provides a platform to improve our products with colors, chemistry treatments and textures, but it also does a lot more,” he says. “We call it a Laboratory of Opportunities because you can use pretty much any fiber, from 100% synthetic to 100% natural; produce wetlaid or composite products—it has really unique capabilities.”
In addition to dispersibility, the new line allows Suominen to create nonwovens ranging from super soft to abrasive allowing it to serve markets like moist toilet tissue as well as industrial wipes that require durability and strength. For home care, the line can deliver excellent patterns/textures and apertures for great particle pickup. “So from here, it is evident that the line supports all high-value added segments, while we first focus on workplace and home care and to the products that we already know,” Engström says. “Once the line is fully up and running, it is time to get even more innovative. “
Suominen has been upgrading existing lines around the world to promote its focus on value added products. In Green Bay, WI, where it operates two spunlace lines, Suominen has invested €6 million to install new carding machinery on an existing line, expanding the product range made at the site.
“Once upgraded, the production line will, for its part, improve Suominen’s capability to supply high value added nonwovens for home care, personal care and workplace wipes as well as for hygiene and medical applications, i.e. categories where Suominen seeks to grow. Moreover, the investment offers more efficient supply of nonwovens for baby wipes for Suominen’s customers. The investment again demonstrates that Suominen is serious about growth. It represents also a clear upgrade to our current production technology base, expanding our product offering globally and increasing our production capacity.”
Other investments include a line upgrade in Paulínia, Brazil, which allowed Suominen to launch Fibrella Wrap, a high-performing material for undercast paddings and cushions used in wound care, to the South American market, Suominen’s initial foray into the growing medical market of South America. In Alicante, Spain, the investment expanded the plant’s product offering and increased its capability and capacity to supply also products with high added value. The focus of the investment was particularly on workplace and medical segments.
With upgraded operations in South America, North America and Europe, Asia, the world’s largest market for nonwovens in the world, represents a hole in the company’s manufacturing footprint. As part of its strategic plan, announced in 2017, the company said Asian expansion is a priority.
“At the moment we operate there only through agents, and it has always been clear to us that in order to really succeed commercially in Asia, we need to have local manufacturing, Engström says. “The two basic options for Suominen to expand to Asia are greenfield investment or acquisition. Both options are being considered and both have their pros and cons. While the expansion to Asia is currently being seriously explored, at the moment there is nothing more to communicate about that.”
In terms of market segments, Suominen’s sales are grouped into two categories—Convenience and Care. Convenience represents about 92% of sales and comprises the company’s activities in the disposable wipes segment. “Wipes continue to be central to Convenience’s growth as is the transformation of our portfolio to drive growth of higher value applications such as dispersible wipes, home and workplace cleaning wipes,” says Ernesto Levy, senior vice president, Convenience. “This is important because these segments truly value the innovation we are able to bring.”
In addition to improvements in dispersible technology, Suominen has introduced a line of workplace wipes called Genesis Pro that deliver superior absorption and its Design Series, which offers personalization and customization capabilities.
“Innovation is the key to our growth. The only way we will grow will be via innovation. Our strategy to be a market driven product leader requires us to understand trends and needs a then address these needs with innovative nonwovens that others cannot develop,” Levy says.
Suominen’s business outside of wipes, including products for the medical and hygiene markets, is contained within its Care Division, which continues to be an integral part of Suominen, supporting the company’s vision of becoming a leader in fluid management. “The learning and development within fluid management is a common thread in wipes, hygiene and medical articles,” says Lynda Kelly, senior vice president, Care. “We are a relatively new player in the global hygiene market offering a focused product line for select product applications. Growth in these segments takes time and we are doing the right things to grow in the future. “
While the predominant technology in the hygiene and medical market is spunmelt, Suominen continues to see smaller pockets of opportunity for spunlaced applications in hygiene. The company has found success with its Fibrella Move product line for acquisition distribution layers in feminine hygiene and light incontinence products. The recently published EU directive proposal supports the demand for plastic free products, which will provide a broader platform for spunlaced nonwovens in hygiene applications.
In medical, Suominen continues to grow in niche medical applications utilizing its unique thermal bond line called Novonette nonwovens. This technology offers unparalleled hold and release characteristics of fluid necessary for many niche medical applications. Meanwhile, Webril, the company’s 100% cotton nonwovens line of products, continues to meet the rigorous needs of the medical cast padding and medical market. To support the transition from medical wovens to nonwovens, Suominen launched Fibrella Wrap in Brazil. The company sees strong growth in Latin America, high single-digit figures, and aims to expand its business there leveraging its modern manufacturing capability in Brazil. It recently invested in this plant, and thanks to that it can now efficiently supply also medical products to this very lucrative market. On top of the replacement of traditional textiles with nonwovens in, it also sees totally new application areas.
www.suominen.fi
2017 Nonwovens Sales: $511 million
Key Personnel
Tapio Engström, interim president and CEO; Ernesto Levy, senior vice president, Convenience; Lynda Kelly, senior vice president, Care
Plants
Bethune, SC; Green Bay, WI; Windsor Locks, CT; Paulínia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, wetlaid, thermal bonded, carded, hydroentangled, SPC
Major Markets
Wipes, medical, hygiene
Sales continued to climb for Suominen, the world’s largest maker of spunlace nonwovens and other technologies for wipes applications, thanks to its changemaker strategy, which focuses on superior high value-added products.
“We have focused on understanding market and consumer needs and developing innovative products that meet those needs,” says Tapio Engström, interim president and CEO. “Whether it is the softest baby wipe or top sheet or even better dispersible toilet tissue, our new products are helping us deliver solid business growth.”
The healthy economic situation and solid GDP growth have created an environment conducive to this growth. Also consumer confidence remains strong in both North America and Europe, which are the company’s main market regions. Sales grew 2% to $511 million (€426 million,) while profits were lower than the 2017 level largely due to challenges facing the start-up and ramp-up of Suominen’s new line in Bethune, SC. The total negative impact of the costs of all growth investments, Bethune being the largest, was nearly $6 million in 2017. In addition, the unfavorable development of sales prices due to the competitive situation in Europe, as well as product mix change, affected gross profit and hence also the operating profit.
Despite the challenges faced in the start-up of the new line in Bethune, the company remains optimistic for its success as production volumes continue to flow in the right direction and customer demand continues to exist. Toward the second quarter of 2018, improved stability and reliability helped turned the new line positive on gross profit and the company expects the line to reach its full potential by the end of 2018.
The new line, which features proprietary technology to target key value added segments, such as workplace and household wipes, was developed after a review of megatrends, key customer trends and consumer trends, Engström says.
“This new, very flexible composites line satisfies our need for additional capacity, provides a platform to improve our products with colors, chemistry treatments and textures, but it also does a lot more,” he says. “We call it a Laboratory of Opportunities because you can use pretty much any fiber, from 100% synthetic to 100% natural; produce wetlaid or composite products—it has really unique capabilities.”
In addition to dispersibility, the new line allows Suominen to create nonwovens ranging from super soft to abrasive allowing it to serve markets like moist toilet tissue as well as industrial wipes that require durability and strength. For home care, the line can deliver excellent patterns/textures and apertures for great particle pickup. “So from here, it is evident that the line supports all high-value added segments, while we first focus on workplace and home care and to the products that we already know,” Engström says. “Once the line is fully up and running, it is time to get even more innovative. “
Suominen has been upgrading existing lines around the world to promote its focus on value added products. In Green Bay, WI, where it operates two spunlace lines, Suominen has invested €6 million to install new carding machinery on an existing line, expanding the product range made at the site.
“Once upgraded, the production line will, for its part, improve Suominen’s capability to supply high value added nonwovens for home care, personal care and workplace wipes as well as for hygiene and medical applications, i.e. categories where Suominen seeks to grow. Moreover, the investment offers more efficient supply of nonwovens for baby wipes for Suominen’s customers. The investment again demonstrates that Suominen is serious about growth. It represents also a clear upgrade to our current production technology base, expanding our product offering globally and increasing our production capacity.”
Other investments include a line upgrade in Paulínia, Brazil, which allowed Suominen to launch Fibrella Wrap, a high-performing material for undercast paddings and cushions used in wound care, to the South American market, Suominen’s initial foray into the growing medical market of South America. In Alicante, Spain, the investment expanded the plant’s product offering and increased its capability and capacity to supply also products with high added value. The focus of the investment was particularly on workplace and medical segments.
With upgraded operations in South America, North America and Europe, Asia, the world’s largest market for nonwovens in the world, represents a hole in the company’s manufacturing footprint. As part of its strategic plan, announced in 2017, the company said Asian expansion is a priority.
“At the moment we operate there only through agents, and it has always been clear to us that in order to really succeed commercially in Asia, we need to have local manufacturing, Engström says. “The two basic options for Suominen to expand to Asia are greenfield investment or acquisition. Both options are being considered and both have their pros and cons. While the expansion to Asia is currently being seriously explored, at the moment there is nothing more to communicate about that.”
In terms of market segments, Suominen’s sales are grouped into two categories—Convenience and Care. Convenience represents about 92% of sales and comprises the company’s activities in the disposable wipes segment. “Wipes continue to be central to Convenience’s growth as is the transformation of our portfolio to drive growth of higher value applications such as dispersible wipes, home and workplace cleaning wipes,” says Ernesto Levy, senior vice president, Convenience. “This is important because these segments truly value the innovation we are able to bring.”
In addition to improvements in dispersible technology, Suominen has introduced a line of workplace wipes called Genesis Pro that deliver superior absorption and its Design Series, which offers personalization and customization capabilities.
“Innovation is the key to our growth. The only way we will grow will be via innovation. Our strategy to be a market driven product leader requires us to understand trends and needs a then address these needs with innovative nonwovens that others cannot develop,” Levy says.
Suominen’s business outside of wipes, including products for the medical and hygiene markets, is contained within its Care Division, which continues to be an integral part of Suominen, supporting the company’s vision of becoming a leader in fluid management. “The learning and development within fluid management is a common thread in wipes, hygiene and medical articles,” says Lynda Kelly, senior vice president, Care. “We are a relatively new player in the global hygiene market offering a focused product line for select product applications. Growth in these segments takes time and we are doing the right things to grow in the future. “
While the predominant technology in the hygiene and medical market is spunmelt, Suominen continues to see smaller pockets of opportunity for spunlaced applications in hygiene. The company has found success with its Fibrella Move product line for acquisition distribution layers in feminine hygiene and light incontinence products. The recently published EU directive proposal supports the demand for plastic free products, which will provide a broader platform for spunlaced nonwovens in hygiene applications.
In medical, Suominen continues to grow in niche medical applications utilizing its unique thermal bond line called Novonette nonwovens. This technology offers unparalleled hold and release characteristics of fluid necessary for many niche medical applications. Meanwhile, Webril, the company’s 100% cotton nonwovens line of products, continues to meet the rigorous needs of the medical cast padding and medical market. To support the transition from medical wovens to nonwovens, Suominen launched Fibrella Wrap in Brazil. The company sees strong growth in Latin America, high single-digit figures, and aims to expand its business there leveraging its modern manufacturing capability in Brazil. It recently invested in this plant, and thanks to that it can now efficiently supply also medical products to this very lucrative market. On top of the replacement of traditional textiles with nonwovens in, it also sees totally new application areas.
Helsinki, Finland
www.suominen.fi
2018 Nonwovens Sales: $509 million
Key Personnel
Petri Helsky, CEO; Toni Tamminen, CFO; Ernesto Levy, senior vice president, the Americas: Markku Koivisto, senior vice president, Europe and CTO; Lynda Kelly, senior vice president, Business Development
Plants
Bethune, SC; Green Bay, WI; Windsor Locks, CT; Paulínia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, wetlaid, thermal bonded, carded, hydroentangled, SPC
Major Markets
Wipes, medical, hygiene
Suominen continues to focus on fiber-based value added products within its wipes business and in other applications. The Helsinki, Finland-based company reported sales of €431.1 million ($509 million) in 2018, which was a essentially flat.
Earnings, meanwhile, were significantly lower at €4.6 million, compared to €15 million the prior year.
Describing results as disappointing, CEO Petri Helsky blamed the results on steep raw material prices as well as challenges associated with ramping up its latest line in Bethune, SC.
“I think even if the outcome of last year was somewhat disappointing, at Suominen we are doing a lot of great things that will pay off in the future,” he says. “We have worked out some pricing issues and we have progressed with ramping up our new line. We are on targets with our plans.”
Helsky assumed the role of president and CEO of the company in January after its recently appointed CEO Pekka Ojanpää died in an aviation accident in late November. He had been set to start his role at Suominen on December 1.
Helsky previously served as president of Metsä Tissue Corporation and prior to that as president of Pulp and Paper segment and the Asia-Pacific region and member of management board at Kemira Oyj and has extensive experience in international management positions.
In other organizational news, in July, the company reorganized its business structure into two new business areas, Americas and Europe in a move to be more efficient, focused and agile. As part of the reorganization, Suominen appointed Toni Tamminen as CFO and changed the responsibilities of some current members of its Executive Team. Ernesto Levy was named senior vice president of Americas, Markku Koivisto was named senior vice president of Europe; and Lynda Kelly was named senior vice president, Business Development. Meanwhile, senior vice president, Operational Excellence, Larry Kinn has announced his retirement.
Suominen has previously operated through a market-focused organization with two divisions, Convenience, which encompassed its wipes-related businesses, and Care, containing activities outside of wipes.
In 2018, the company’s Convenience business area accounted for 92% of its sales, and Suominen held onto its position as a global market leader in nonwovens for wipes with a marketshare of about 20%. Within this area, Suominen supplied the baby care, personal care, household wipes and workplace wipes markets and its customers include global consumer brands, private label manufacturers, retail chains and regional nonwovens converters.
Suominen’s latest investment, a new wetlaid line in Bethune, SC, was able to turn a positive gross profit in late 2018—after some problems relating to start up—and is allowing Suominen to develop new products serving value-added markets like flushable substrates and hard surface cleaning.
“We have stabilized the new line and we can run our main product with quality and good outcome while we further broaden the product line coming off of it,” Helsky says. “The idea is we can produce different products and technologies on the nonwovens line.”
In other investment news, Suominen announced in February 2018 it was going to add carding technologies on an existing spunlace line at its plant in Green Bay, WI, an investment that will improve its ability to supply high added value nonwovens for household, personal care, medical and workplace wipes. The new machinery is expected to be fully operational by the end of this year.
Meanwhile, the business area formerly known as Care reported sales of €35 million last year, largely to the hygiene and medical markets. Like the wipes business, Care was impacted by steep price increases. While Suominen did not launch any new products in its medical business in 2018, it did extend manufacturing of its colored Fibrella Zorb+ —previously made only in the U.S.—to Alicante, Spain. In hygiene, Suominen made three significant products launches in October 2018. Fibrella Cozy is a topsheet material for absorbent hygiene products such as panty liners that is superior in softness and excellent in fluid management. It is bonded with water and without any binders, making it an attractive choice for hygiene brands and converters. The other launches centered around extending Suominen’s more than decade old Biolace products line. Biolace Move for acquisition and distribution layers and Biolace Cozy for topsheets can both be used a components in absorbent hygiene products.
While the Care businesses no longer have their own business unit, growth outside of wipes continues to be important focus to Suominen’s business. “We have put a lot of effort into developing the ranges and the products in that market segment and we will continue to have some interesting opportunities here going forward. The business operating structure will not impact our efforts in this area,” Helsky says.
In 2018, Suominen launched a sustainable product portfolio to better highlight its environmentally sound products. While the company already has a large portfolio of products made out of renewable and biodegradable raw materials, it is continuously looking for alternatives to replace plastics.
“Suominen has extended its current offering by launching new products and is continuously developing new products for this portfolio which consists of products made of renewable, recycled, compostable and plastic-free raw materials,” he adds.
In 2019, Suominen launched Biolace Sensation, a 100% renewable material option made from plant derived cellulose that is chemically modified. Bio-based products like this provide an alternative to conventional oil-based plastics and have certain benefits such as lower carbon footprint, compostability and the ability to biodegrade in certain environments. For the hygiene segment, Suominen’s Biolace Cozy is designed to be the softest and driest topsheet made from fully renewable fibers to address the natural needs of female consumers.
In other new launches, in September 2018, Suominen introduced the Suominen Intelligent Nonwovens concept to the market. First of its kind in the world of nonwovens, the concept makes it possible to embed digital features into Suominen nonwovens. For example, with Suominen Intelligent Nonwovens, product traceability and product safety can be taken to a new level. It also provides brands with a new kind of sophisticated marketing tool. These are only some examples of opportunities the concept offers.
The concept stems from Suominen’s research and development projects that have already led to the launch of High Definition Design Series, a revolutionary pattern selection for nonwovens. The Suominen Intelligent Nonwovens concept adds a unique technical capability into the mix and combines artificial intelligence with extremely high definition patterning. With Suominen Intelligent Nonwovens, all kinds of digital features can be embedded into the substrate without deteriorating other functionalities or aesthetic appearance of nonwovens.
“Innovation is a key focus area. There are plenty of reasons to innovate. One of them is all of the discussion around plastic use and single use plastic products and the other is offering new and exciting products for our customers,” Helsky adds.
www.suominen.fi
2018 Nonwovens Sales: $509 million
Key Personnel
Petri Helsky, CEO; Toni Tamminen, CFO; Ernesto Levy, senior vice president, the Americas: Markku Koivisto, senior vice president, Europe and CTO; Lynda Kelly, senior vice president, Business Development
Plants
Bethune, SC; Green Bay, WI; Windsor Locks, CT; Paulínia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, wetlaid, thermal bonded, carded, hydroentangled, SPC
Major Markets
Wipes, medical, hygiene
Suominen continues to focus on fiber-based value added products within its wipes business and in other applications. The Helsinki, Finland-based company reported sales of €431.1 million ($509 million) in 2018, which was a essentially flat.
Earnings, meanwhile, were significantly lower at €4.6 million, compared to €15 million the prior year.
Describing results as disappointing, CEO Petri Helsky blamed the results on steep raw material prices as well as challenges associated with ramping up its latest line in Bethune, SC.
“I think even if the outcome of last year was somewhat disappointing, at Suominen we are doing a lot of great things that will pay off in the future,” he says. “We have worked out some pricing issues and we have progressed with ramping up our new line. We are on targets with our plans.”
Helsky assumed the role of president and CEO of the company in January after its recently appointed CEO Pekka Ojanpää died in an aviation accident in late November. He had been set to start his role at Suominen on December 1.
Helsky previously served as president of Metsä Tissue Corporation and prior to that as president of Pulp and Paper segment and the Asia-Pacific region and member of management board at Kemira Oyj and has extensive experience in international management positions.
In other organizational news, in July, the company reorganized its business structure into two new business areas, Americas and Europe in a move to be more efficient, focused and agile. As part of the reorganization, Suominen appointed Toni Tamminen as CFO and changed the responsibilities of some current members of its Executive Team. Ernesto Levy was named senior vice president of Americas, Markku Koivisto was named senior vice president of Europe; and Lynda Kelly was named senior vice president, Business Development. Meanwhile, senior vice president, Operational Excellence, Larry Kinn has announced his retirement.
Suominen has previously operated through a market-focused organization with two divisions, Convenience, which encompassed its wipes-related businesses, and Care, containing activities outside of wipes.
In 2018, the company’s Convenience business area accounted for 92% of its sales, and Suominen held onto its position as a global market leader in nonwovens for wipes with a marketshare of about 20%. Within this area, Suominen supplied the baby care, personal care, household wipes and workplace wipes markets and its customers include global consumer brands, private label manufacturers, retail chains and regional nonwovens converters.
Suominen’s latest investment, a new wetlaid line in Bethune, SC, was able to turn a positive gross profit in late 2018—after some problems relating to start up—and is allowing Suominen to develop new products serving value-added markets like flushable substrates and hard surface cleaning.
“We have stabilized the new line and we can run our main product with quality and good outcome while we further broaden the product line coming off of it,” Helsky says. “The idea is we can produce different products and technologies on the nonwovens line.”
In other investment news, Suominen announced in February 2018 it was going to add carding technologies on an existing spunlace line at its plant in Green Bay, WI, an investment that will improve its ability to supply high added value nonwovens for household, personal care, medical and workplace wipes. The new machinery is expected to be fully operational by the end of this year.
Meanwhile, the business area formerly known as Care reported sales of €35 million last year, largely to the hygiene and medical markets. Like the wipes business, Care was impacted by steep price increases. While Suominen did not launch any new products in its medical business in 2018, it did extend manufacturing of its colored Fibrella Zorb+ —previously made only in the U.S.—to Alicante, Spain. In hygiene, Suominen made three significant products launches in October 2018. Fibrella Cozy is a topsheet material for absorbent hygiene products such as panty liners that is superior in softness and excellent in fluid management. It is bonded with water and without any binders, making it an attractive choice for hygiene brands and converters. The other launches centered around extending Suominen’s more than decade old Biolace products line. Biolace Move for acquisition and distribution layers and Biolace Cozy for topsheets can both be used a components in absorbent hygiene products.
While the Care businesses no longer have their own business unit, growth outside of wipes continues to be important focus to Suominen’s business. “We have put a lot of effort into developing the ranges and the products in that market segment and we will continue to have some interesting opportunities here going forward. The business operating structure will not impact our efforts in this area,” Helsky says.
In 2018, Suominen launched a sustainable product portfolio to better highlight its environmentally sound products. While the company already has a large portfolio of products made out of renewable and biodegradable raw materials, it is continuously looking for alternatives to replace plastics.
“Suominen has extended its current offering by launching new products and is continuously developing new products for this portfolio which consists of products made of renewable, recycled, compostable and plastic-free raw materials,” he adds.
In 2019, Suominen launched Biolace Sensation, a 100% renewable material option made from plant derived cellulose that is chemically modified. Bio-based products like this provide an alternative to conventional oil-based plastics and have certain benefits such as lower carbon footprint, compostability and the ability to biodegrade in certain environments. For the hygiene segment, Suominen’s Biolace Cozy is designed to be the softest and driest topsheet made from fully renewable fibers to address the natural needs of female consumers.
In other new launches, in September 2018, Suominen introduced the Suominen Intelligent Nonwovens concept to the market. First of its kind in the world of nonwovens, the concept makes it possible to embed digital features into Suominen nonwovens. For example, with Suominen Intelligent Nonwovens, product traceability and product safety can be taken to a new level. It also provides brands with a new kind of sophisticated marketing tool. These are only some examples of opportunities the concept offers.
The concept stems from Suominen’s research and development projects that have already led to the launch of High Definition Design Series, a revolutionary pattern selection for nonwovens. The Suominen Intelligent Nonwovens concept adds a unique technical capability into the mix and combines artificial intelligence with extremely high definition patterning. With Suominen Intelligent Nonwovens, all kinds of digital features can be embedded into the substrate without deteriorating other functionalities or aesthetic appearance of nonwovens.
“Innovation is a key focus area. There are plenty of reasons to innovate. One of them is all of the discussion around plastic use and single use plastic products and the other is offering new and exciting products for our customers,” Helsky adds.
Helsinki, Finland
www.suominen.fi
2019 Nonwovens Sales: $491 million
Key Personnel
Petri Helsky, CEO; Toni Tamminen, CFO; Markku Koivisto, senior vice president, Europe and CTO; Lynda Kelly, senior vice president, Business Development and Americas Interim; Mimoun Saim, senior vice president, Global Operations; Klaus Korhonen, senior vice president, HR and Legal Affairs
Plants
Bethune, SC; Green Bay, WI; Windsor Locks, CT; Paulinia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, wetlaid, thermal bond, chemical bond, SPC, Webril
Major Markets
Wipes, medical, hygiene
As it increases its focus on sustainability, Suominen Corporation, the world’s largest supplier of nonwoven substrates to the global wipes market, continues to roll out new products featuring new sustainable fiber types and designs.
“Our strategic vision is to be the frontrunner for nonwovens innovation and sustainability,” says senior vice president, Business Development, Lynda Kelly.
Suominen’s current Sustainable Product Portfolio consists of products made of renewable, recycled and/or plastic-free raw materials as well as compostable and totally dispersible nonwovens. “We are constantly developing new products for this portfolio and we have a number of new products to be launched focused on this sustainable market trend,” Kelly continues.
One example of Suominen’s successes in sustainable product development revolve around flushable and dispersible technology. The company was the first nonwovens manufacturer to receive the Fine for Flush Manufacturers’ Generic Certificate from Water UK for its Hydraspun Royal product. Hydraspun Royal meets stringent flushability standards established in the U.K. market. “Receiving the Fine to Flush certification from Water UK is a remarkable achievement for us,” Kelly notes. “It demonstrates our commitment to innovation and being a nonwovens market leader.”
Additionally, Suominen’s 100% sustainable product line Biolace nonwovens, which was introduced more than a decade ago, continues to expand and grow.
Suominen launched its new strategy in January 2020. This strategy was built from the ground up involving many functions, regions and perspectives to create strategy ownership from the beginning. The strategy highlights five focus areas—operational excellence, sustainability leadership, differentiation through innovation and commercial excellence, a great place to work and a dual operating model.
Furthermore, the company renewed financial targets for the strategy period 2020-2025 which includes net sales growth above market growth and an EBITDA margin above 12% by 2025.
”There are two main targets we aim to achieve with this strategy—growth and improved profitability,” says Kelly. “We believe that we can grow together with our customers in the changing market by offering sustainable products which the end users are requesting. Our profitability will be improved by upgrading our assets, introducing new products while reaching our operational excellence initiatives.”
In April, Suominen announced it was investing about €4 million to enhance one of its lines in Italy in order to strengthen its capabilities for sustainable products. At the time of the announcement, CEO Petri Helsky said, “With this investment, we strengthen our leadership in sustainable nonwovens by allowing us to offer next generation products to the market.”
The project is expected to be finalized in the second half of 2021.
In other investment news, Suominen announced in August it would upgrade and restart an existing line in Cressa, Italy, to increase its overall nonwovens output. This €8 million investment is expected to be complete next year and will help meet demand for spunlace nonwovens globally.
“The demand for nonwovens is growing in all regions,” Kelly says. “The demand of nonwovens for cleaning and disinfecting wipes as well as nonwovens for medical purposes has increased due to the Covid-19 pandemic and consequently our sales volumes has increased in all our markets. In the longer term the Covid-19 pandemic may lead to continued increased demand for nonwovens for cleaning and disinfection applications.”
In response to increased demand for PPE, Suominen has also developed nonwovens—under the brand name Fibrella Shield—for various healthcare needs, including face masks and protective clothing. This material has been tested in Finland and has met the necessary criteria to be used by healthcare professionals. Currently the plant is capable of producing material for approximately 15 million mask per month, Kelly explains.
Suominen’s business areas are Americas and Europe. In 2019, Americas’ sales accounted for 64% of net sales and the European business accounted for 36% of sales.
www.suominen.fi
2019 Nonwovens Sales: $491 million
Key Personnel
Petri Helsky, CEO; Toni Tamminen, CFO; Markku Koivisto, senior vice president, Europe and CTO; Lynda Kelly, senior vice president, Business Development and Americas Interim; Mimoun Saim, senior vice president, Global Operations; Klaus Korhonen, senior vice president, HR and Legal Affairs
Plants
Bethune, SC; Green Bay, WI; Windsor Locks, CT; Paulinia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, wetlaid, thermal bond, chemical bond, SPC, Webril
Major Markets
Wipes, medical, hygiene
As it increases its focus on sustainability, Suominen Corporation, the world’s largest supplier of nonwoven substrates to the global wipes market, continues to roll out new products featuring new sustainable fiber types and designs.
“Our strategic vision is to be the frontrunner for nonwovens innovation and sustainability,” says senior vice president, Business Development, Lynda Kelly.
Suominen’s current Sustainable Product Portfolio consists of products made of renewable, recycled and/or plastic-free raw materials as well as compostable and totally dispersible nonwovens. “We are constantly developing new products for this portfolio and we have a number of new products to be launched focused on this sustainable market trend,” Kelly continues.
One example of Suominen’s successes in sustainable product development revolve around flushable and dispersible technology. The company was the first nonwovens manufacturer to receive the Fine for Flush Manufacturers’ Generic Certificate from Water UK for its Hydraspun Royal product. Hydraspun Royal meets stringent flushability standards established in the U.K. market. “Receiving the Fine to Flush certification from Water UK is a remarkable achievement for us,” Kelly notes. “It demonstrates our commitment to innovation and being a nonwovens market leader.”
Additionally, Suominen’s 100% sustainable product line Biolace nonwovens, which was introduced more than a decade ago, continues to expand and grow.
Suominen launched its new strategy in January 2020. This strategy was built from the ground up involving many functions, regions and perspectives to create strategy ownership from the beginning. The strategy highlights five focus areas—operational excellence, sustainability leadership, differentiation through innovation and commercial excellence, a great place to work and a dual operating model.
Furthermore, the company renewed financial targets for the strategy period 2020-2025 which includes net sales growth above market growth and an EBITDA margin above 12% by 2025.
”There are two main targets we aim to achieve with this strategy—growth and improved profitability,” says Kelly. “We believe that we can grow together with our customers in the changing market by offering sustainable products which the end users are requesting. Our profitability will be improved by upgrading our assets, introducing new products while reaching our operational excellence initiatives.”
In April, Suominen announced it was investing about €4 million to enhance one of its lines in Italy in order to strengthen its capabilities for sustainable products. At the time of the announcement, CEO Petri Helsky said, “With this investment, we strengthen our leadership in sustainable nonwovens by allowing us to offer next generation products to the market.”
The project is expected to be finalized in the second half of 2021.
In other investment news, Suominen announced in August it would upgrade and restart an existing line in Cressa, Italy, to increase its overall nonwovens output. This €8 million investment is expected to be complete next year and will help meet demand for spunlace nonwovens globally.
“The demand for nonwovens is growing in all regions,” Kelly says. “The demand of nonwovens for cleaning and disinfecting wipes as well as nonwovens for medical purposes has increased due to the Covid-19 pandemic and consequently our sales volumes has increased in all our markets. In the longer term the Covid-19 pandemic may lead to continued increased demand for nonwovens for cleaning and disinfection applications.”
In response to increased demand for PPE, Suominen has also developed nonwovens—under the brand name Fibrella Shield—for various healthcare needs, including face masks and protective clothing. This material has been tested in Finland and has met the necessary criteria to be used by healthcare professionals. Currently the plant is capable of producing material for approximately 15 million mask per month, Kelly explains.
Suominen’s business areas are Americas and Europe. In 2019, Americas’ sales accounted for 64% of net sales and the European business accounted for 36% of sales.
Helsinki, Finland
www.suominen.fi
2020 Nonwovens Sales: $560 million
Key Personnel
Petri Helsky, CEO; Toni Tamminen, CFO; Markku Koivisto, senior vice president, Europe and CTO; Lynda Kelly, senior vice president, Americas and Business Development; Mimoun Saim, senior vice president, Global Operations; Klaus Korhonen, senior vice president, HR and Legal Affairs
Plants
Bethune, SC; Green Bay, WI; Windsor Locks, CT; Paulinia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, wetlaid, thermal bond, chemical bond, SPC, Webril
Major Markets
Wipes, medical, hygiene
Record sales were reported at wipes substrate supplier Suominen Corporation. The Helsinki, Finland-based company’s sales reached €458.9 million ($560 million) with strong operating profit due to unprecedented demand for wipes. This demand has continued into 2021.
“We believe long term, Covid-19 may lead to a change in consumer cleaning behavior and thus maintain high demand for nonwovens for cleaning and infection,” says Lynda Kelly, senior vice president, Americas & Business Development.
Suominen’s investment strategy developed prior to Covid-19 strengthened its capabilities and increased capacity. Suominen announced several upgrades at its plants in the U.S. and Europe. In Bethune, SC, Suominen will have an upgrade to an existing line to widen its offerings. Bethune is the site with the company’s latest wetlaid investment which was well prepared to support the surge in wipes demand. Meanwhile, in Europe Suominen increased its spunlace capacity by upgrading and restarting one of its existing production lines in Cressa, Italy. This €8 million investment will strengthen its capabilities in Europe. Also in Italy, the company enhanced another production line to strengthen its ability to make sustainable products. This investment was valued at €4 million.
“The wipes market continues to have positive CAGRs in all regions supported by increasing penetration rates, new applications and new designs within existing and emerging brands,” says Kelly. “Given continued positive trends, the market will absorb these new capacity investments. With the entire supply chain focused on improving its carbon footprint, sourcing within the region of wipes consumption will become a more important part of the sustainable wipes solution.”
As the market leader for wipes, Suominen will continue to focus on delivering on its growth and profitability strategy. “We stayed true to our strategy during the unprecedented demand of Covid by continuing our investments and innovation plans,” Kelly says.
At the start of 2020, Suominen introduced a new strategy, which was ground up involving many functions, regions and perspectives to create strategy ownership from the beginning. The strategy highlights five focus areas—operational excellence, sustainability leadership, differentiation through innovation and commercial excellence, a great place to work and a dual operating model.
Furthermore, the company renewed financial targets for the strategy period 2020-2025 which includes net sales growth above market growth and an EBITDA margin above 12% by 2025.
“We are committed to continuously improving our production efficiency and the efficient utilization of natural resources,” Kelly says. “Our target is to reduce our energy consumption, greenhouse gas emissions, water consumption and waste to landfill. We have concrete action plans to continue the work towards the targets.”
On the product side, Suominen’s target is to increase sales of sustainable materials by 50% and to have more than 10 sustainable product launches per year. In 2020, the company launched nine sustainable products and sales increased by 22.5%. “Sustainability is of growing importance to our customers and other stakeholders,” Kelly says. “We aid our customers to achieve their environmental targets by offering products made from renewable, recycled, compostable and plastic-free raw materials.”
As such the company has launched a number of sustainable options for the household market. In sync with this strategy, Suominen has introduced products such as Biolace Pure, a 100% plant-based product with superior cleaning power. The development of this innovative material with excellent liquid management and cleaning properties is based on Suominen’s long history and know-how in producing pulp-based products. Another sustainable household product launched is Biolace Bamboo, also with superior cleaning power. As the name indicates, the main raw material used in Biolace bamboo consists of bamboo—a perennial grass that is one of the fastest growing plants in the world. The speed of its re-growth after harvesting makes it a considerable alternative for use in place of other renewable raw materials.
www.suominen.fi
2020 Nonwovens Sales: $560 million
Key Personnel
Petri Helsky, CEO; Toni Tamminen, CFO; Markku Koivisto, senior vice president, Europe and CTO; Lynda Kelly, senior vice president, Americas and Business Development; Mimoun Saim, senior vice president, Global Operations; Klaus Korhonen, senior vice president, HR and Legal Affairs
Plants
Bethune, SC; Green Bay, WI; Windsor Locks, CT; Paulinia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, wetlaid, thermal bond, chemical bond, SPC, Webril
Major Markets
Wipes, medical, hygiene
Record sales were reported at wipes substrate supplier Suominen Corporation. The Helsinki, Finland-based company’s sales reached €458.9 million ($560 million) with strong operating profit due to unprecedented demand for wipes. This demand has continued into 2021.
“We believe long term, Covid-19 may lead to a change in consumer cleaning behavior and thus maintain high demand for nonwovens for cleaning and infection,” says Lynda Kelly, senior vice president, Americas & Business Development.
Suominen’s investment strategy developed prior to Covid-19 strengthened its capabilities and increased capacity. Suominen announced several upgrades at its plants in the U.S. and Europe. In Bethune, SC, Suominen will have an upgrade to an existing line to widen its offerings. Bethune is the site with the company’s latest wetlaid investment which was well prepared to support the surge in wipes demand. Meanwhile, in Europe Suominen increased its spunlace capacity by upgrading and restarting one of its existing production lines in Cressa, Italy. This €8 million investment will strengthen its capabilities in Europe. Also in Italy, the company enhanced another production line to strengthen its ability to make sustainable products. This investment was valued at €4 million.
“The wipes market continues to have positive CAGRs in all regions supported by increasing penetration rates, new applications and new designs within existing and emerging brands,” says Kelly. “Given continued positive trends, the market will absorb these new capacity investments. With the entire supply chain focused on improving its carbon footprint, sourcing within the region of wipes consumption will become a more important part of the sustainable wipes solution.”
As the market leader for wipes, Suominen will continue to focus on delivering on its growth and profitability strategy. “We stayed true to our strategy during the unprecedented demand of Covid by continuing our investments and innovation plans,” Kelly says.
At the start of 2020, Suominen introduced a new strategy, which was ground up involving many functions, regions and perspectives to create strategy ownership from the beginning. The strategy highlights five focus areas—operational excellence, sustainability leadership, differentiation through innovation and commercial excellence, a great place to work and a dual operating model.
Furthermore, the company renewed financial targets for the strategy period 2020-2025 which includes net sales growth above market growth and an EBITDA margin above 12% by 2025.
“We are committed to continuously improving our production efficiency and the efficient utilization of natural resources,” Kelly says. “Our target is to reduce our energy consumption, greenhouse gas emissions, water consumption and waste to landfill. We have concrete action plans to continue the work towards the targets.”
On the product side, Suominen’s target is to increase sales of sustainable materials by 50% and to have more than 10 sustainable product launches per year. In 2020, the company launched nine sustainable products and sales increased by 22.5%. “Sustainability is of growing importance to our customers and other stakeholders,” Kelly says. “We aid our customers to achieve their environmental targets by offering products made from renewable, recycled, compostable and plastic-free raw materials.”
As such the company has launched a number of sustainable options for the household market. In sync with this strategy, Suominen has introduced products such as Biolace Pure, a 100% plant-based product with superior cleaning power. The development of this innovative material with excellent liquid management and cleaning properties is based on Suominen’s long history and know-how in producing pulp-based products. Another sustainable household product launched is Biolace Bamboo, also with superior cleaning power. As the name indicates, the main raw material used in Biolace bamboo consists of bamboo—a perennial grass that is one of the fastest growing plants in the world. The speed of its re-growth after harvesting makes it a considerable alternative for use in place of other renewable raw materials.
Helsinki, Finland
www.suominen.fi
2021 Nonwovens Sales: $524 million
Key Personnel
Petri Helsky, CEO; Toni Tamminen, CFO; Markku Koivisto, senior vice president, Europe and CTO; Lynda Kelly, senior vice president, Americas and Business Development; Mimoun Saim, senior vice president, Global Operations; Klaus Korhonen, senior vice president, HR and Legal Affairs
Plants
Bethune, SC; Green Bay, WI; Windsor Locks, CT; Paulinia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, wetlaid, thermal bond, chemical bond, SPC, Webril
Major Markets
Wipes, medical, hygiene
For Suominen, the world’s largest producer of nonwovens substrates for wipes applications, business conditions varied greatly in the second half of 2021 compared to the first half. The year began with the same record volumes and sales seen in 2020, but third quarter sales dropped due to overstocking in the supply chain, followed by partial recovery in the fourth quarter. The overall result was the third best EBITDA in Suominen’s history, €47 million. Sales were €443.2 million or $524 million.
“Certain key customers especially in the U.S. continued to struggle with their inventory levels,” says CEO Petri Helsky. “This effected our sales negatively. We have been working to widen the product portfolio on the production lines especially affected by the inventory imbalance.”
Suominen has recently announced a number of new products focused on sustainability. One is Biolace Zero, a carbon neutral nonwoven, made using Veocel Lyocell fibers from Lenzing. The product is used for baby and personal care and household wips, is 100% biodegradable, compostable and plastic-free.
Additionally, in Europe, Suominen has introduced Biolace Silva, a pulp-based wetlaid nonwoven with exceptional cleaning power and even 50% lower carbon footprint than 100% viscose products. Besides being sustainable, it also offers convenience and a premium feel on the skin.
“The market for sustainable wipe products is gaining momentum supported by the single-use plastic directive in Europe, with brands and retailers adding sustainability as a cornerstone of their corporate strategy,” says Helsky. “With the entire supply chain focused on improving its carbon footprint, sourcing within the region of wipes consumption will become a more important part of the sustainable wipes solution.”
Part of this solution will likely be recycling and the use of recycled or repurposed products. Earlier this year, Suominen launched a nonwovens made from recycled paper. Hydraspun Circula, a moist toilet tissue substrate, was developed in cooperation with Codi Group and offers a variety of applications to meet consumers’ daily needs.
“The cornerstone of our strategy is sustainability, and we are continuously developing our offering and operations accordingly,” Helsky adds. “We are targeting to increase the sales of sustainable products by 50% by 2025 compared to the base year of 2019 and launch 10 sustainable products per year.”
In 2021, the sales of sustainable products were 47% higher than in the baseline year 2019 and during the year Suominen launched 16 sustainable products.
“We want to use resources efficiently and to operate with the smallest possible impact on the environment,” Helsky adds. “Suominen has concrete reduction targets for our greenhouse gas emissions, energy consumption, water consumption and waste to landfill and we progressed steadily towards these targets in 2021. As part of our work to reduce greenhouse gas emissions, we shifted entirely towards fossil-free electricity in all our European sites and have installed a solar panel plant with 2,222 solar panels to our site in Alicante, Spain.”
Another example of Suominen’s concrete work in the field of product sustainability is a new compostability test center in Nakkila, Finland. There,s Suominen is able to determine the biodegradability of nonwovens made of renewable raw materials. The test center has both industrial and home compost conditions, but the aim is to study biodegradability also wider in different environments. Suominen Green Lab supports Suominen’s product development.
In investment news, Suominen is getting ready to begin an improvement project on one of its lines in Nakkila, Finland, enhancing and upgrading capabilities to support its vision of being a frontrunner for nonwovens innovation and sustainability. This marks the fourth line Suominen has improved recently. In 2021, it upgraded and restarted an existing line in Cressa, Italy, a €8 million investment to strengthen capabilities in Europe. In Italy, Suominen enhanced another production line to strengthen its ability to make sustainable products. This investment was valued at €4 million.
Meanwhile, in the U.S., Suominen has upgraded an existing wetlaid line in Bethune, SC, to widen its offerings and better support wipes demand. This wetlaid line largely focuses on hard surface disinfecting wipes and flushable wipes. Suominen serves this market, which has grown post-pandemic, with its Hydraspun portfolio of brands, and continues to innovate and expand.
For Suominen's 2020 top company profile, click here.
www.suominen.fi
2021 Nonwovens Sales: $524 million
Key Personnel
Petri Helsky, CEO; Toni Tamminen, CFO; Markku Koivisto, senior vice president, Europe and CTO; Lynda Kelly, senior vice president, Americas and Business Development; Mimoun Saim, senior vice president, Global Operations; Klaus Korhonen, senior vice president, HR and Legal Affairs
Plants
Bethune, SC; Green Bay, WI; Windsor Locks, CT; Paulinia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, wetlaid, thermal bond, chemical bond, SPC, Webril
Major Markets
Wipes, medical, hygiene
For Suominen, the world’s largest producer of nonwovens substrates for wipes applications, business conditions varied greatly in the second half of 2021 compared to the first half. The year began with the same record volumes and sales seen in 2020, but third quarter sales dropped due to overstocking in the supply chain, followed by partial recovery in the fourth quarter. The overall result was the third best EBITDA in Suominen’s history, €47 million. Sales were €443.2 million or $524 million.
“Certain key customers especially in the U.S. continued to struggle with their inventory levels,” says CEO Petri Helsky. “This effected our sales negatively. We have been working to widen the product portfolio on the production lines especially affected by the inventory imbalance.”
Suominen has recently announced a number of new products focused on sustainability. One is Biolace Zero, a carbon neutral nonwoven, made using Veocel Lyocell fibers from Lenzing. The product is used for baby and personal care and household wips, is 100% biodegradable, compostable and plastic-free.
Additionally, in Europe, Suominen has introduced Biolace Silva, a pulp-based wetlaid nonwoven with exceptional cleaning power and even 50% lower carbon footprint than 100% viscose products. Besides being sustainable, it also offers convenience and a premium feel on the skin.
“The market for sustainable wipe products is gaining momentum supported by the single-use plastic directive in Europe, with brands and retailers adding sustainability as a cornerstone of their corporate strategy,” says Helsky. “With the entire supply chain focused on improving its carbon footprint, sourcing within the region of wipes consumption will become a more important part of the sustainable wipes solution.”
Part of this solution will likely be recycling and the use of recycled or repurposed products. Earlier this year, Suominen launched a nonwovens made from recycled paper. Hydraspun Circula, a moist toilet tissue substrate, was developed in cooperation with Codi Group and offers a variety of applications to meet consumers’ daily needs.
“The cornerstone of our strategy is sustainability, and we are continuously developing our offering and operations accordingly,” Helsky adds. “We are targeting to increase the sales of sustainable products by 50% by 2025 compared to the base year of 2019 and launch 10 sustainable products per year.”
In 2021, the sales of sustainable products were 47% higher than in the baseline year 2019 and during the year Suominen launched 16 sustainable products.
“We want to use resources efficiently and to operate with the smallest possible impact on the environment,” Helsky adds. “Suominen has concrete reduction targets for our greenhouse gas emissions, energy consumption, water consumption and waste to landfill and we progressed steadily towards these targets in 2021. As part of our work to reduce greenhouse gas emissions, we shifted entirely towards fossil-free electricity in all our European sites and have installed a solar panel plant with 2,222 solar panels to our site in Alicante, Spain.”
Another example of Suominen’s concrete work in the field of product sustainability is a new compostability test center in Nakkila, Finland. There,s Suominen is able to determine the biodegradability of nonwovens made of renewable raw materials. The test center has both industrial and home compost conditions, but the aim is to study biodegradability also wider in different environments. Suominen Green Lab supports Suominen’s product development.
In investment news, Suominen is getting ready to begin an improvement project on one of its lines in Nakkila, Finland, enhancing and upgrading capabilities to support its vision of being a frontrunner for nonwovens innovation and sustainability. This marks the fourth line Suominen has improved recently. In 2021, it upgraded and restarted an existing line in Cressa, Italy, a €8 million investment to strengthen capabilities in Europe. In Italy, Suominen enhanced another production line to strengthen its ability to make sustainable products. This investment was valued at €4 million.
Meanwhile, in the U.S., Suominen has upgraded an existing wetlaid line in Bethune, SC, to widen its offerings and better support wipes demand. This wetlaid line largely focuses on hard surface disinfecting wipes and flushable wipes. Suominen serves this market, which has grown post-pandemic, with its Hydraspun portfolio of brands, and continues to innovate and expand.
For Suominen's 2020 top company profile, click here.
Helsinki, Finland
www.suominen.fi
2022 Nonwovens Sales: $524 million
Key Personnel
Tommi Björman, CEO; Janne Silonsaari, CFO; Markku Koivisto, senior vice president, Europe and interim senior vice president, Americas; Mimoun Saim, senior vice president, Global Operations; Klaus Korhonen, senior vice president, HR and Legal Affairs
Plants
Bethune, SC; Green Bay, WI; Windsor Locks, CT; Paulinia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, wetlaid, thermal bond, chemical bond, SPC, Webril
Major Markets
Wipes, medical, hygiene
Net sales were $524 million in 2022 for Suominen, the world’s leading supplier of nonwoven substrates to the global wipes market, due to higher sales prices amid lower sales volumes. Other factors impacting business conditions included unprecedented raw material inflation, which increased from already inflated levels in 2022 after Russia’s illegal invasion of Ukraine in February. Particularly Suominen’s U.S. business suffered from the high inventory levels in the whole supply chain, where imbalance started to normalize only during the second half of the year.
Throughout the year, Suominen continued to implement its strategy published in 2020. The objective of this strategy is to achieve growth and improved profitability through sustainability, customer focus and efficiency. In 2022, Suominen announced an investment to enhance and upgrade one of its production lines in Nakkila, Finland. The investment is made in line with Suominen’s strategy to be the frontrunner in sustainable nonwovens and is expected to be completed in the second half of 2023.
Additionally, Suominen continues to focus on developing sustainable products. In 2022, sales of sustainable products were 99% higher than in the base year 2019, partially thanks to the introduction of 12 sustainable products including Suominen’s first carbon-neutral product, Biolace Zero.
Suominen developed Biolace Zero, a 100% biodegradable, compostable, plastic-free nonwoven made with Veocel Lyocel fibers from long-term partner Lenzing. It can be used for many types of wiping applications due to its excellent wet and dry strength and improved softness. Other recent product introductions include Hydraspun Circula, moist toilet tissue nonwoven made with recycled paper. Like traditional Hydraspun products, Circula contains virgin cellulosic fibers as well as fibers from recycled paper, without compromising the end product quality. The product received an INDEX23 Innovation Award.
“Hydraspun Circula demonstrates that innovations in nonwovens can support the circular economy and sustainable production. Receiving recognition for that is very rewarding,” says Johanna Kivistö, manager, Category Management, Europe. Hydraspun Circula was developed specifically for moist toilet tissues but can be used also in multiple other applications. It is biodegradable and meets EDANA/INDA GD4 flushability assessment according to internal testing. The increased focus on sustainable products has also led to the permanent closure of Suominen’s manufacturing site in Mozzate, Italy, which did not have the capabilities to process sustainable fibers.
“The demand for traditional blended fiber products in Europe is declining. Manufacturing sustainable nonwovens competitively requires production assets and processes optimized specifically for these products. Our lines at the Mozzate plant are not best suited for sustainable fibers, and this combined with high operating costs means that the plant is not competitive and the situation is not expected to improve materially going forward. We are constantly evaluating the performance and profitability of our assets, and in the current situation we have unfortunately come to the conclusion that we need to consider closing the production at Mozzate to improve the competitiveness of our European business,” says former interim CEO Klaus Korhonen during the closure announcement.
By region, European sales represented about 42% of Suominen’s sales. The company has two sites in Italy, one in Spain and one in Finland. According to Suominen, the European market is highly fragmented and competitive and the SUP is an important driver toward sustainability. Meanwhile, North American sales represented 58% of sales. As the largest consumer market for wipes, North America, where Suominen has three plants, continues to see growth across all categories for wipes and is particularly strong in the private label market. The South American market, where Suominen operates a Brazilian facility, is dominated by the baby care category and branded players.
www.suominen.fi
2022 Nonwovens Sales: $524 million
Key Personnel
Tommi Björman, CEO; Janne Silonsaari, CFO; Markku Koivisto, senior vice president, Europe and interim senior vice president, Americas; Mimoun Saim, senior vice president, Global Operations; Klaus Korhonen, senior vice president, HR and Legal Affairs
Plants
Bethune, SC; Green Bay, WI; Windsor Locks, CT; Paulinia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, wetlaid, thermal bond, chemical bond, SPC, Webril
Major Markets
Wipes, medical, hygiene
Net sales were $524 million in 2022 for Suominen, the world’s leading supplier of nonwoven substrates to the global wipes market, due to higher sales prices amid lower sales volumes. Other factors impacting business conditions included unprecedented raw material inflation, which increased from already inflated levels in 2022 after Russia’s illegal invasion of Ukraine in February. Particularly Suominen’s U.S. business suffered from the high inventory levels in the whole supply chain, where imbalance started to normalize only during the second half of the year.
Throughout the year, Suominen continued to implement its strategy published in 2020. The objective of this strategy is to achieve growth and improved profitability through sustainability, customer focus and efficiency. In 2022, Suominen announced an investment to enhance and upgrade one of its production lines in Nakkila, Finland. The investment is made in line with Suominen’s strategy to be the frontrunner in sustainable nonwovens and is expected to be completed in the second half of 2023.
Additionally, Suominen continues to focus on developing sustainable products. In 2022, sales of sustainable products were 99% higher than in the base year 2019, partially thanks to the introduction of 12 sustainable products including Suominen’s first carbon-neutral product, Biolace Zero.
Suominen developed Biolace Zero, a 100% biodegradable, compostable, plastic-free nonwoven made with Veocel Lyocel fibers from long-term partner Lenzing. It can be used for many types of wiping applications due to its excellent wet and dry strength and improved softness. Other recent product introductions include Hydraspun Circula, moist toilet tissue nonwoven made with recycled paper. Like traditional Hydraspun products, Circula contains virgin cellulosic fibers as well as fibers from recycled paper, without compromising the end product quality. The product received an INDEX23 Innovation Award.
“Hydraspun Circula demonstrates that innovations in nonwovens can support the circular economy and sustainable production. Receiving recognition for that is very rewarding,” says Johanna Kivistö, manager, Category Management, Europe. Hydraspun Circula was developed specifically for moist toilet tissues but can be used also in multiple other applications. It is biodegradable and meets EDANA/INDA GD4 flushability assessment according to internal testing. The increased focus on sustainable products has also led to the permanent closure of Suominen’s manufacturing site in Mozzate, Italy, which did not have the capabilities to process sustainable fibers.
“The demand for traditional blended fiber products in Europe is declining. Manufacturing sustainable nonwovens competitively requires production assets and processes optimized specifically for these products. Our lines at the Mozzate plant are not best suited for sustainable fibers, and this combined with high operating costs means that the plant is not competitive and the situation is not expected to improve materially going forward. We are constantly evaluating the performance and profitability of our assets, and in the current situation we have unfortunately come to the conclusion that we need to consider closing the production at Mozzate to improve the competitiveness of our European business,” says former interim CEO Klaus Korhonen during the closure announcement.
By region, European sales represented about 42% of Suominen’s sales. The company has two sites in Italy, one in Spain and one in Finland. According to Suominen, the European market is highly fragmented and competitive and the SUP is an important driver toward sustainability. Meanwhile, North American sales represented 58% of sales. As the largest consumer market for wipes, North America, where Suominen has three plants, continues to see growth across all categories for wipes and is particularly strong in the private label market. The South American market, where Suominen operates a Brazilian facility, is dominated by the baby care category and branded players.
