01.01.03
Location: Helsinki, Finland
Sales: $651 million
Description: Key personnel
Juha Rantanen, CEO; Jukka Moisio, division president
Ahlstrom
FiberComposites division
Tokyo Japan
Telephone: 81-3-3442-1611
Web: www.ahlstrom.com/fibercomposites
E-mail: fiber.composites@ahlstrom.com
Key Personnel
Sachi Nagatsuka
Ahlstrom
FiberComposites division
Edinburgh, Scotland
Telephone: 44-131-458-2000
E-mail: fiber.composites@ahlstrom.com
Key Personnel
Karen Renton
Ahlstrom
FiberComposites division
Windsor Locks, CT 06096-2335
Telephone: 860 654 8300
E-mail: fiber.composites@ahlstrom.com
Key Personnel
Ellen Miles
Plants
Barcelona, Spain; Brignoud, France; Chirnside, U.K.; Hyun Poong, Korea; Karhula, Finland; Louveira, Brazil; Madisonville, KY; Malmedy, Belgium; Mikkeli, Finland; Mt. Holly Springs, PA; Ställdalen, Sweden; Tampere, Finland; Taylorville, IL; Turin, Italy; Windsor Locks, CT.
Ahlstrom’s FiberComposites division is one nonwovens producer that “is where it needs to be” in terms of end use markets, sales growth and earnings potential. The division’s sales, including nonwovens and filtration media, increased to $651 million last year. This 4.2% sales growth was achieved on 12% volume growth, which reflects the industry’s tight margins as well as currency fluctuations, according to Alistair Brown, vice president, corporate communications and marketing.
By market segment, 35% of the division’s sales were conducted in the consumer and healthcare market while 39% were in filtration and automotive. Meanwhile, 8% were sold in building markets and 17% in industrial applications. Regionally, the U.S. represents 25% of Ahlstrom Corporation’s total sales; Germany reflected 14%; France 11%, Italy 8% and the U.K. comprised 6% of sales. The remaining countries were 36%.
Ahlstrom has spent the past several years investing heavily in the nonwovens industry. While much of this investment initially centered around acquisitions—including Dexter Nonwovens, the wetlaid nonwovens business activities of BBA’s Lewisburg, PA plant and Spanish filtration provider Papelera del Besòs—more recently capital expenditure has been the growth method of choice for Ahlstrom. In the past 12 months, Ahlstrom has made only one acquisition, the specialty filtration business activities of FiberMark Inc. This purchase, made in December 2002, included the industrial and process filtration products, related customer lists, patents and converting equipment of Fibermark. These products were transferred to Ahlstrom’s Mount Holly Springs, PA, plant and has reportedly been fully integrated into existing businesses. Revenues for this business were reported at $5.7 million.
In place of acquisitions, Ahlstrom has made several important expansion plans in 2002 and 2003. Chief among these investments is the addition of a $44 million composite nonwovens manufacturing line in Windsor Locks, CT, which was announced in February. This line, expected to come onstream in early 2004, will feature proprietary composite technology that adds value to the nonwoven web. Output will mainly target consumer and industrial wipe products, but the line has the flexibility to handle other nonwoven applications.
This investment is the second made in recent years at Windsor Locks, the division’s largest facility, in recent years. In December 2001, the group completed construction on a $44.2 million composite line there. Mr. Brown said the rapid expansion rate is meeting customer demand for capacity while broadening the facilities’ technological capabilities.
Another facility receiving a great deal of attention from Ahlstrom in recent months is located in Turin, Italy, which is jointly operated by the FiberComposites and Specialties division. In February, the company announced a $12.5 million plan to reconfigure an existing specialty paper line capable of producing nonwoven materials. These materials will target the engine filtration market as well as medical, wipes and general industrial applications. In June, plans were announced to invest an additional $6.2 million on a filtration media production line. Including this fine fiber line, the Turin plant will have four lines producing nonwovens. Turin is Ahlstrom’s largest production site with, in total, six production lines and more than 500 employees.
Also receiving attention is the Hyun Poong, Korea site where a second nonwovens production line is set to come onstream next year. This $32 million line will be the site’s second and will help meet the need for nonwoven materials in Asia and around the world. The company has been present in the South Korean market for 15 years and this marks the second investment in two years at the site. In 2001, Ahlstrom upgraded a paper machine to expand its capacity in the filtration segment.
Additional investments include a $2.3 million upgrade program on a filtration line in Louveira, Brazil, and $3 million in a 17,000-square-foot research and development and administration office at the engine filtration facility in Madisonville, KY which was inaugurated in December. The Madisonville plant manufactures engine filtration products for both domestic and international markets. The expansion follows the closure and consolidation of Ahlstrom’s Chattanooga, TN plant in 2002.
This series of investments reflects the importance of nonwovens to Ahlstrom, according to executives. “Nonwovens has been identified as one of the key growth areas for the Ahlstrom Corporation,” Mr. Brown explained. “Ahlstrom’s vision is to be the most successful global company in high performance fiber solutions, and our recent acquisitions are consistent with this strategy. By investing in these two areas, we are able to add new technologies, extend existing manufacturing capabilities and satisfy the needs of our global customer base.”
Ahlstrom makes several considerations before finalizing investment decisions. Among these are the ability to create high-performance products in value-added market segments and to meet current and anticipated market and customer product needs within growth markets. This has made the transition periods following its recent acquisitions seamless both for Ahlstrom and the acquired business.
“The acquisitions have all proved to be all that we expected of these businesses,” Mr. Brown explained. “The transitions went well with no real disruption in supply to our customers.”
By end use segment, Ahlstrom supplies materials to a wide range of markets including food products, wipes, wall coverings and medical products. New markets are always of interest to the company. “We are willing to invest in all four corners of the world,” explained Mr. Brown. “We follow the needs of our customers as well the vision of Ahlstrom Corporation. All of the product lines we have are in areas where we are confident that future growth will occur.”
A major tenet of Ahlstrom’s growth strategy is the expansion of its value-added product offerings to provide its customers with products that provide multifunctional benefits. To achieve this, Ahlstrom has had to position itself at the forefront of nonwovens technology. And, as its core markets grow larger, so will the company, driven by increased consumption of nonwoven products across the world.
And regardless of the base, executives are confident that sales will continue to grow. “We are expecting growth in all of our areas. Sometimes the base from which that growth occurs is smaller than other times but it is still important growth for the company.”"
Sales: $651 million
Description: Key personnel
Juha Rantanen, CEO; Jukka Moisio, division president
Ahlstrom
FiberComposites division
Tokyo Japan
Telephone: 81-3-3442-1611
Web: www.ahlstrom.com/fibercomposites
E-mail: fiber.composites@ahlstrom.com
Key Personnel
Sachi Nagatsuka
Ahlstrom
FiberComposites division
Edinburgh, Scotland
Telephone: 44-131-458-2000
E-mail: fiber.composites@ahlstrom.com
Key Personnel
Karen Renton
Ahlstrom
FiberComposites division
Windsor Locks, CT 06096-2335
Telephone: 860 654 8300
E-mail: fiber.composites@ahlstrom.com
Key Personnel
Ellen Miles
Plants
Barcelona, Spain; Brignoud, France; Chirnside, U.K.; Hyun Poong, Korea; Karhula, Finland; Louveira, Brazil; Madisonville, KY; Malmedy, Belgium; Mikkeli, Finland; Mt. Holly Springs, PA; Ställdalen, Sweden; Tampere, Finland; Taylorville, IL; Turin, Italy; Windsor Locks, CT.
Ahlstrom’s FiberComposites division is one nonwovens producer that “is where it needs to be” in terms of end use markets, sales growth and earnings potential. The division’s sales, including nonwovens and filtration media, increased to $651 million last year. This 4.2% sales growth was achieved on 12% volume growth, which reflects the industry’s tight margins as well as currency fluctuations, according to Alistair Brown, vice president, corporate communications and marketing.
By market segment, 35% of the division’s sales were conducted in the consumer and healthcare market while 39% were in filtration and automotive. Meanwhile, 8% were sold in building markets and 17% in industrial applications. Regionally, the U.S. represents 25% of Ahlstrom Corporation’s total sales; Germany reflected 14%; France 11%, Italy 8% and the U.K. comprised 6% of sales. The remaining countries were 36%.
Ahlstrom has spent the past several years investing heavily in the nonwovens industry. While much of this investment initially centered around acquisitions—including Dexter Nonwovens, the wetlaid nonwovens business activities of BBA’s Lewisburg, PA plant and Spanish filtration provider Papelera del Besòs—more recently capital expenditure has been the growth method of choice for Ahlstrom. In the past 12 months, Ahlstrom has made only one acquisition, the specialty filtration business activities of FiberMark Inc. This purchase, made in December 2002, included the industrial and process filtration products, related customer lists, patents and converting equipment of Fibermark. These products were transferred to Ahlstrom’s Mount Holly Springs, PA, plant and has reportedly been fully integrated into existing businesses. Revenues for this business were reported at $5.7 million.
In place of acquisitions, Ahlstrom has made several important expansion plans in 2002 and 2003. Chief among these investments is the addition of a $44 million composite nonwovens manufacturing line in Windsor Locks, CT, which was announced in February. This line, expected to come onstream in early 2004, will feature proprietary composite technology that adds value to the nonwoven web. Output will mainly target consumer and industrial wipe products, but the line has the flexibility to handle other nonwoven applications.
This investment is the second made in recent years at Windsor Locks, the division’s largest facility, in recent years. In December 2001, the group completed construction on a $44.2 million composite line there. Mr. Brown said the rapid expansion rate is meeting customer demand for capacity while broadening the facilities’ technological capabilities.
Another facility receiving a great deal of attention from Ahlstrom in recent months is located in Turin, Italy, which is jointly operated by the FiberComposites and Specialties division. In February, the company announced a $12.5 million plan to reconfigure an existing specialty paper line capable of producing nonwoven materials. These materials will target the engine filtration market as well as medical, wipes and general industrial applications. In June, plans were announced to invest an additional $6.2 million on a filtration media production line. Including this fine fiber line, the Turin plant will have four lines producing nonwovens. Turin is Ahlstrom’s largest production site with, in total, six production lines and more than 500 employees.
Also receiving attention is the Hyun Poong, Korea site where a second nonwovens production line is set to come onstream next year. This $32 million line will be the site’s second and will help meet the need for nonwoven materials in Asia and around the world. The company has been present in the South Korean market for 15 years and this marks the second investment in two years at the site. In 2001, Ahlstrom upgraded a paper machine to expand its capacity in the filtration segment.
Additional investments include a $2.3 million upgrade program on a filtration line in Louveira, Brazil, and $3 million in a 17,000-square-foot research and development and administration office at the engine filtration facility in Madisonville, KY which was inaugurated in December. The Madisonville plant manufactures engine filtration products for both domestic and international markets. The expansion follows the closure and consolidation of Ahlstrom’s Chattanooga, TN plant in 2002.
This series of investments reflects the importance of nonwovens to Ahlstrom, according to executives. “Nonwovens has been identified as one of the key growth areas for the Ahlstrom Corporation,” Mr. Brown explained. “Ahlstrom’s vision is to be the most successful global company in high performance fiber solutions, and our recent acquisitions are consistent with this strategy. By investing in these two areas, we are able to add new technologies, extend existing manufacturing capabilities and satisfy the needs of our global customer base.”
Ahlstrom makes several considerations before finalizing investment decisions. Among these are the ability to create high-performance products in value-added market segments and to meet current and anticipated market and customer product needs within growth markets. This has made the transition periods following its recent acquisitions seamless both for Ahlstrom and the acquired business.
“The acquisitions have all proved to be all that we expected of these businesses,” Mr. Brown explained. “The transitions went well with no real disruption in supply to our customers.”
By end use segment, Ahlstrom supplies materials to a wide range of markets including food products, wipes, wall coverings and medical products. New markets are always of interest to the company. “We are willing to invest in all four corners of the world,” explained Mr. Brown. “We follow the needs of our customers as well the vision of Ahlstrom Corporation. All of the product lines we have are in areas where we are confident that future growth will occur.”
A major tenet of Ahlstrom’s growth strategy is the expansion of its value-added product offerings to provide its customers with products that provide multifunctional benefits. To achieve this, Ahlstrom has had to position itself at the forefront of nonwovens technology. And, as its core markets grow larger, so will the company, driven by increased consumption of nonwoven products across the world.
And regardless of the base, executives are confident that sales will continue to grow. “We are expecting growth in all of our areas. Sometimes the base from which that growth occurs is smaller than other times but it is still important growth for the company.”"