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    Online Exclusives

    Jofo Focuses on Expansion

    A string of acquisitions, investments has transformed company into a global player

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    12.17.20
    In the past several years, Jofo Nonwovens has transformed itself from a local Chinese player to a multinational corporation thanks to a string of mergers and investments.

    “We have been focusing on our global footprint—not just with our manufacturing but with the global supply chain,” says CEO Rain Tian.

    Tian joined Jofo in 2019 in a deal that also marked the first significant collaboration for the company. Tian—a former executive with Avintiv Nonwovens—had started Fineness Corporation, a Chinese-based manufacturer of air through bonded nonwovens for backsheets, and, as CEO of Jofo, he brought the technology with him.

    In 2020, Jofo has expanded again thanks to a series of acquisitions starting with a Wuxi, China spunmelt operation started by First Quality Nonwovens and later owned by PF Nonwovens. Referring to this as a very quick merger deal taking just 47 days to close, Tian says the integration of the Wuxi site has helped Jofo respond to a surge in Chinese demand, and the company is already adding capacity there.

    While the company has not released many details, Tian has confirmed that Jofo is in the process of adding a second Reicofil spunmelt line in Wuxi to respond to additional growth in the area.

    Meanwhile, Jofo is currently underway with its first international investment—the acquisition of Advanced Fabrics (SAAF), a Saudi Arabian manufacturer of spunmelt nonwovens for medical and hygiene applications. This acquisition is expected to close in early 2021.

    “Acquiring SAAF will allow us to really move into the medical market—it has allowed us to increase our capacity but it has also expanded our offerings,” Tian says. “Having operations in Asia and the Middle East gives us the flexibility to our customers.”

    Next up for Jofo is a collaboration with Soshio Industrial Co., a Hong Kong-based contract manufacturer for wipes maker Rockline Industries. The integration of Soshio will allow Jofo to begin contract manufacturing finished products.

    “This strategic step enables Jofo to promote its process of vertical integration of the industrial chain, expand the scope of business and most importantly enter into the OEM field on the basis of existing material production,” says Tian. “It also builds a solid foundation for Jofo to provide comprehensive service to its global customers.”

    Looking forward, Tian says the company continues to look at expansion opportunities. On the industrial side of its business, the company is adding a facility in Thailand and two additional mergers are in the early stages of discussion.

    “We are looking at all kinds of options close to our business,” he says noting that Jofo hopes to triple is current sales of $100 million by next year. “By the end of this year we will have nine site in China, the Middle East and Southeast Asia. Globalization is our main target. I do believe we will be one of the fastest growing companies in the next years.”
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