Karen McIntyre, senior editor09.08.14
Last week news broke that Jacob Holm’s acquisition of Sontara spunlace technology from DuPont, a deal announced in June, had been finalized. The acquisition not only broadens Jacob Holm’s presence in the spunlace market and significantly expands its sales, it also provides it with exposure to some important new markets for spunlace.
“It was a good opportunity for Jacob Holm to create a new industry innovation leader for spunlace by combining the two businesses,” says CEO Martin Mikkelsen. “It also shows significant growth for us.”
Adding that the acquisition also gives Jacob Holm a broader range of technological nuances within spunlace, Mikkelsen says that Sontara differs from his company’s existing technologies in terms of carding technology and pulp inclusion. Sontara has found success in a number of niche wipes market, like cleanroom and printing, as well as in a number of medical applications, areas that lie outside of Jacob Holm’s core markets of hygiene and wet wipes.
While spunlaced nonwovens have been challenged by improved grades of spunbond and spunmelt fabrics in recent years, Mikkelsen says there continues to be a preference for spunlace in certain areas of the medical market.
“There are critical areas where spunlace is preferred,” he says. “We have validated that Sontara continues to have a strong position in the medical market and with the right development efforts we will be able to unlock some of the growth potential for spunlace in medical.”
DuPont developed Sontara more than 40 years ago and it is currently made at sites in Old Hickory, TN and Asturias, Spain, which will continue to be operated by Jacob Holm. According to DuPont’s annual report, Sontara sales last year were about $190 million, or 5% of DuPont Protection Technologies’ sales.
Mikkelsen says that the Sontara business, which will be run by Paul Marold, a former Ahlstrom executive, will remain intact and there are no plans to reduce headcounts or streamline operations.
In addition to the Sontara acquisition, Jacob Holm’s sales are set to expand significantly next year when its latest investment, a second spunlace line in Candler, NC, comes on stream. So far, executives have been tight lipped on the specifications for the new line but industry sources expect it will expand the company’s role in flushable wipes and other wet wipes segments as well as in areas outside of wipes.
Jacob Holm’s first U.S. line, added in 2006, has been operating at sold-out status for several years as the company relied on streamlining efficiencies and new product development to increase capacity as it waited for the right time to add a new line. The company has indicated that the total cost of the new U.S. investment will reach $60 million when all is said and done.
“It was a good opportunity for Jacob Holm to create a new industry innovation leader for spunlace by combining the two businesses,” says CEO Martin Mikkelsen. “It also shows significant growth for us.”
Adding that the acquisition also gives Jacob Holm a broader range of technological nuances within spunlace, Mikkelsen says that Sontara differs from his company’s existing technologies in terms of carding technology and pulp inclusion. Sontara has found success in a number of niche wipes market, like cleanroom and printing, as well as in a number of medical applications, areas that lie outside of Jacob Holm’s core markets of hygiene and wet wipes.
While spunlaced nonwovens have been challenged by improved grades of spunbond and spunmelt fabrics in recent years, Mikkelsen says there continues to be a preference for spunlace in certain areas of the medical market.
“There are critical areas where spunlace is preferred,” he says. “We have validated that Sontara continues to have a strong position in the medical market and with the right development efforts we will be able to unlock some of the growth potential for spunlace in medical.”
DuPont developed Sontara more than 40 years ago and it is currently made at sites in Old Hickory, TN and Asturias, Spain, which will continue to be operated by Jacob Holm. According to DuPont’s annual report, Sontara sales last year were about $190 million, or 5% of DuPont Protection Technologies’ sales.
Mikkelsen says that the Sontara business, which will be run by Paul Marold, a former Ahlstrom executive, will remain intact and there are no plans to reduce headcounts or streamline operations.
In addition to the Sontara acquisition, Jacob Holm’s sales are set to expand significantly next year when its latest investment, a second spunlace line in Candler, NC, comes on stream. So far, executives have been tight lipped on the specifications for the new line but industry sources expect it will expand the company’s role in flushable wipes and other wet wipes segments as well as in areas outside of wipes.
Jacob Holm’s first U.S. line, added in 2006, has been operating at sold-out status for several years as the company relied on streamlining efficiencies and new product development to increase capacity as it waited for the right time to add a new line. The company has indicated that the total cost of the new U.S. investment will reach $60 million when all is said and done.