01.01.03
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.