Capital at Work

If the announcements made during May 2026 are any indication, confidence is returning to the nonwovens industry. In the span of just one month, seven manufacturers revealed plans to add new nonwovens production lines, with the overwhelming majority focused on ultra-soft hygiene materials and sustainable wipes substrates. These investments showcase the continued strength of demand in two of the industry’s most important segments.

Among the most notable developments is paper and tissue producer Kruger’s $333 million entry into the nonwovens market. The Canadian company announced plans to build a new facility dedicated to manufacturing wipes substrates, marking a significant diversification beyond its traditional paper-based businesses. The plant will focus on plastic-free, chemical-free and biodegradable wipe materials derived primarily from wood fibers, aligning with growing consumer and regulatory demands for more sustainable products.

According to company executives, the investment reflects a long-term growth strategy centered on diversification and sustainability. 

Kruger is far from alone in recognizing the opportunities within wipes. During the INDEX 26 exhibition in Geneva, announcements were made regarding new spunlace capacity in Turkey, Italy and China, while another Chinese producer revealed plans for a Wetlace line targeting the growing flushable wipes segment. Like Kruger, these companies are focused on seeking opportunities in higher-value, innovation-driven markets like plastic-free wipes, moist toilet tissue and other products that rely on advanced nonwoven substrates. 

Beyond wipes, the hygiene sector is also attracting substantial investment. Announcements from Chinese manufacturers Wisdom-Greentech and Fujian Leo Group regarding new air-through bonding (ATB) nonwovens lines show that ultra-soft materials continue to be in demand among hygiene manufacturers. As consumer expectations continue to rise, manufacturers are investing in technologies capable of delivering enhanced comfort while maintaining efficiency and sustainability goals.

Maybe it is just a coincidence that so many lines have been announced in such a short time frame, but these projects point to a broader trend. Despite ongoing economic uncertainty in many regions, manufacturers remain willing to invest when clear growth opportunities exist. Certainly, markets like sustainable wipes, flushable products and premium hygiene applications are providing opportunities and the volume and scale of recent announcements suggest that producers are positioning themselves not only for current demand but also for the next phase of growth in the global nonwovens market.

As always, we appreciate your comments.

Karen McIntyre | Editor
[email protected]