01.01.05
Location: Helsinki, Finland
Sales: $827 million
Description: Personnel
Jukka Moisio, president and CEO; Randal Davis, senior vice president and general manager, Filtration; Claudio Ermondi, senior vice president and general manager, Nonwovens; Tommi Bjormann, senior vice president and general manager, glass nonwovens; Marco Aimo, global sales and marketing manager, Europe filtration; Jerome Barrillon, director of marketing, U.S. filtration; Valmir Piton, general manager Brazil filtration; Howard Jin, vice president & general manager, Korea filtration; Karen Renton, marketing and communications manager, Europe nonwovens; Ellen Miles, marketing and communications manager, North America and South America nonwovnes; Jimmy Loh, general manager, Shanghai nonwovens; Juha Bohm, director of sales and marketing Europe glass nonwovens
Processes
Airlaid, carded drylaid, fine fiber, glass nonwovens, needlepunch, spunbond, spunlace, spunlace composites, Hydraspun, wetlaid, Trinitex and process enhancements such as embossing, extrusion coating, lamination, and textilization.
The last 18 months have been described as a period of transformation for Ahlstrom Corporation, Helsinki, Finland. At the end of 2004, Ahlstrom flattened its organization in order to become more customer driven. The move divided the former FiberComposites division into three separate business areas: Nonwovens, led by Claudio Ermondi, Filtration, led by Randal Davis, and Glass Nonwovens led by Tommi Bjornman. “In the new operating model, there is more direct contact between the customer and the company. This will help us recognize customer needs much faster and bring us a more competitive edge,” said Ahlstrom president and CEO Jukka Moisio.
Nonwovens
A series of investments helped Ahlstrom grow its nonwovens business despite a weakening market. “Sales were up due to acquisition and investment but the market was weak in 2004, particularly in North America,” said Mr. Ermondi. “The weakness of the dollar against the Euro also impacted our results as approximately 50% of our business is conducted in the U.S.”
Despite these issues, Ahlstrom continues to make growth in nonwovens a priority. And while its rate of acquisition and investment has slowed slightly in the past 12 months, growth initiatives continue.
In 2004, investments were made in a number of key production sites around the world. In both Turin, Italy and Hyun Poong, Korea, production lines were reconfigured to support the growing local markets for nonwovens for medical, wipes and general industrial applications; in Windsor Locks, CT, a new spunlace composites line was inaugurated to serve the North American wipes market and specialty spunlace manufacturer Green Bay Nonwovens, based in Green Bay, WI, was acquired
Of the Green Bay acquisition, Mr. Ermondi said, “the acquisition fits our desire to grow in wipes, particularly in North America, and this allowed us instant access to customers, equipment and market knowledge. It also complements our new spunlace composites line in Windsor Locks, CT. Having many technologies in one geography enables us to offer a complete range of products to our existing and potential customer base.”
Among recent innovations is a natural cellulose-based wipe, which is not only dispersible but also biodegradable. The materials are produced using Ahlstrom’s patented Hydraspun technology which binds synthetic fibers into a uniform and soft dispersible wipe. These wipes dissipate in water. The product disperses completely to introduce only small, individual fibers into a sewage system making our wipes suitable to water treatment facilities. Mr. Ermondi said, “The biggest driver of growth in consumer wipes is that consumers want convenience and that, coupled with increased benefits of health and wellness, has resulted in the popularity of consumer wipes growing at double-digit rates worldwide.”
Other groundbreaking innovations in nonwovens include the award-winning photocatalytic technology, which destroys pollutants in gas or liquid effluents. This new technique successfully fixes titanium dioxide (TIO2), a natural catalyst, to a nonwoven material. Combined with UVA from lamps or natural light and often a layer of activated carbon, it allows for the continual purification and sanitation of air and water.
Also receiving attention is Ahlstrom’s medical business, which continues to benefit from a large-scale spunbond composite line added in Windsor Locks in November 2001. Recent news from this segment includes the introduction of a new fabric for medical gowns that provides a high level of viral-barrier protection and enhanced comfort. Launched in November 2004, Ahlstrom’s Breathable Viral Barrier (BVB) not only protects medical personnel from viral infections such as Hepatitis, Human Immunodeficiency Virus (HIV), Severe Accute Respiratory Syndrom (SARS) and Avian influenza but also maintains a high level of breathability and comfort, even as the wearer’s temperature rises.
These new developments have helped Ahlstrom diversify its business from wetlaid, which comprised a large portion of its business due to its large acquisition of Dexter Corporation, Nonwoven Materials, a wetlaid producer, in 1999. Still, wetlaid remains an important technology to Ahlstrom “Wetlaid is important in filtration, food services, tea bags, wipes, medical and many other markets,” Mr. Ermondi explained. “Wetlaid still is the bulk of our business and this technology is very specific to our business plan. What we are doing now is trying to use wetlaid to hit other markets.”
Across all of its technologies and businesses, Ahlstrom will rely on new technology and development to help it achieve its goal of being among the top three largest nonwovens producers in the world within the next couple of years. “We want to expand more through innovation,” Mr. Ermondi said. “It is our plan to mix competencies and technologies to provide something new to nonwovens. We want to be in the top three (producers of nonwovens) but we also want to be profitable. The way to do this is to serve customers in a new way.”
Filtration
Ahlstrom’s Filtration business operates from 10 principal sites in Asia, Europe and North and South America and with a global sales office network.
During 2004, Ahlstrom completed two organic growth investments in Hyun Poong, Korea and Turin, Italy. The investments involved the reconfiguration of existing machines to supply products for engine filtration markets. Furthermore, the business expanded the capacity of its manufacturing plant in Louveira, Brazil and completed the acquisition of Hollinee LLC’s Filtration business, adding mainly heating, ventilation and air conditioning (HVAC) media to its already extensive filtration portfolio.
The acquisition of Hollinee LLC’s Filtration business is part of Ahlstrom’s goal of diversifying its filtration business from its mainstay—engine filtration. “We have made a strategic decision to become a major player in the filtration market,” said Jerome Barrillon, director of marketing, filtration. “For us, this means being number one or number two in all of the markets we choose to be in. The acquisition of Hollinee’s New Windsor and Groesbeck plants gave us instant access to the market.”
Consistent with this, Ahlstrom also formed a strategic alliance with Lydall Inc. to serve the North American liquid filtration market with a new technology and product offering— Lydall’s wetlaid microglass media (LyPore XL). “The partnership is a bonus for both companies.”
More recently, Ahlstrom announced its intent to expand its capacity in solvent-treated filtration materials for the automotive market. “The expansion involves a series of smaller investments across our global manufacturing sites over the next few years,” stated Jerome Barrillon. “We will match these investments to customer demand. We have already begun the process in Turin, Italy and should see an increase in capacity of around 15%.”
Also expected to add to Ahlstrom’s filtration business is the start up of the new fine fiber production line in Turin, Italy that took place in June 2005. “The new line is based on custom melt-spinning technology and can use multiple polymers to create composite and calendered products for a number of applications for air, liquid and engine filtration.”
Glass Nonwovens
Ahlstrom’s Glass nonwovens business serves the windmill, marine and transportation markets with a range of specialty reinforcements and glassfiber tissues. The business serves its customers globally from its two manufacturing units in Finland.
The glass nonwovens market remained competitive throughout 2004 and increased its volumes by 8% despite intense price competition. Investments in 2004 included a further expansion of its glass tissue line and a cold repair of the glass furnace."
Sales: $827 million
Description: Personnel
Jukka Moisio, president and CEO; Randal Davis, senior vice president and general manager, Filtration; Claudio Ermondi, senior vice president and general manager, Nonwovens; Tommi Bjormann, senior vice president and general manager, glass nonwovens; Marco Aimo, global sales and marketing manager, Europe filtration; Jerome Barrillon, director of marketing, U.S. filtration; Valmir Piton, general manager Brazil filtration; Howard Jin, vice president & general manager, Korea filtration; Karen Renton, marketing and communications manager, Europe nonwovens; Ellen Miles, marketing and communications manager, North America and South America nonwovnes; Jimmy Loh, general manager, Shanghai nonwovens; Juha Bohm, director of sales and marketing Europe glass nonwovens
Processes
Airlaid, carded drylaid, fine fiber, glass nonwovens, needlepunch, spunbond, spunlace, spunlace composites, Hydraspun, wetlaid, Trinitex and process enhancements such as embossing, extrusion coating, lamination, and textilization.
The last 18 months have been described as a period of transformation for Ahlstrom Corporation, Helsinki, Finland. At the end of 2004, Ahlstrom flattened its organization in order to become more customer driven. The move divided the former FiberComposites division into three separate business areas: Nonwovens, led by Claudio Ermondi, Filtration, led by Randal Davis, and Glass Nonwovens led by Tommi Bjornman. “In the new operating model, there is more direct contact between the customer and the company. This will help us recognize customer needs much faster and bring us a more competitive edge,” said Ahlstrom president and CEO Jukka Moisio.
Nonwovens
A series of investments helped Ahlstrom grow its nonwovens business despite a weakening market. “Sales were up due to acquisition and investment but the market was weak in 2004, particularly in North America,” said Mr. Ermondi. “The weakness of the dollar against the Euro also impacted our results as approximately 50% of our business is conducted in the U.S.”
Despite these issues, Ahlstrom continues to make growth in nonwovens a priority. And while its rate of acquisition and investment has slowed slightly in the past 12 months, growth initiatives continue.
In 2004, investments were made in a number of key production sites around the world. In both Turin, Italy and Hyun Poong, Korea, production lines were reconfigured to support the growing local markets for nonwovens for medical, wipes and general industrial applications; in Windsor Locks, CT, a new spunlace composites line was inaugurated to serve the North American wipes market and specialty spunlace manufacturer Green Bay Nonwovens, based in Green Bay, WI, was acquired
Of the Green Bay acquisition, Mr. Ermondi said, “the acquisition fits our desire to grow in wipes, particularly in North America, and this allowed us instant access to customers, equipment and market knowledge. It also complements our new spunlace composites line in Windsor Locks, CT. Having many technologies in one geography enables us to offer a complete range of products to our existing and potential customer base.”
Among recent innovations is a natural cellulose-based wipe, which is not only dispersible but also biodegradable. The materials are produced using Ahlstrom’s patented Hydraspun technology which binds synthetic fibers into a uniform and soft dispersible wipe. These wipes dissipate in water. The product disperses completely to introduce only small, individual fibers into a sewage system making our wipes suitable to water treatment facilities. Mr. Ermondi said, “The biggest driver of growth in consumer wipes is that consumers want convenience and that, coupled with increased benefits of health and wellness, has resulted in the popularity of consumer wipes growing at double-digit rates worldwide.”
Other groundbreaking innovations in nonwovens include the award-winning photocatalytic technology, which destroys pollutants in gas or liquid effluents. This new technique successfully fixes titanium dioxide (TIO2), a natural catalyst, to a nonwoven material. Combined with UVA from lamps or natural light and often a layer of activated carbon, it allows for the continual purification and sanitation of air and water.
Also receiving attention is Ahlstrom’s medical business, which continues to benefit from a large-scale spunbond composite line added in Windsor Locks in November 2001. Recent news from this segment includes the introduction of a new fabric for medical gowns that provides a high level of viral-barrier protection and enhanced comfort. Launched in November 2004, Ahlstrom’s Breathable Viral Barrier (BVB) not only protects medical personnel from viral infections such as Hepatitis, Human Immunodeficiency Virus (HIV), Severe Accute Respiratory Syndrom (SARS) and Avian influenza but also maintains a high level of breathability and comfort, even as the wearer’s temperature rises.
These new developments have helped Ahlstrom diversify its business from wetlaid, which comprised a large portion of its business due to its large acquisition of Dexter Corporation, Nonwoven Materials, a wetlaid producer, in 1999. Still, wetlaid remains an important technology to Ahlstrom “Wetlaid is important in filtration, food services, tea bags, wipes, medical and many other markets,” Mr. Ermondi explained. “Wetlaid still is the bulk of our business and this technology is very specific to our business plan. What we are doing now is trying to use wetlaid to hit other markets.”
Across all of its technologies and businesses, Ahlstrom will rely on new technology and development to help it achieve its goal of being among the top three largest nonwovens producers in the world within the next couple of years. “We want to expand more through innovation,” Mr. Ermondi said. “It is our plan to mix competencies and technologies to provide something new to nonwovens. We want to be in the top three (producers of nonwovens) but we also want to be profitable. The way to do this is to serve customers in a new way.”
Filtration
Ahlstrom’s Filtration business operates from 10 principal sites in Asia, Europe and North and South America and with a global sales office network.
During 2004, Ahlstrom completed two organic growth investments in Hyun Poong, Korea and Turin, Italy. The investments involved the reconfiguration of existing machines to supply products for engine filtration markets. Furthermore, the business expanded the capacity of its manufacturing plant in Louveira, Brazil and completed the acquisition of Hollinee LLC’s Filtration business, adding mainly heating, ventilation and air conditioning (HVAC) media to its already extensive filtration portfolio.
The acquisition of Hollinee LLC’s Filtration business is part of Ahlstrom’s goal of diversifying its filtration business from its mainstay—engine filtration. “We have made a strategic decision to become a major player in the filtration market,” said Jerome Barrillon, director of marketing, filtration. “For us, this means being number one or number two in all of the markets we choose to be in. The acquisition of Hollinee’s New Windsor and Groesbeck plants gave us instant access to the market.”
Consistent with this, Ahlstrom also formed a strategic alliance with Lydall Inc. to serve the North American liquid filtration market with a new technology and product offering— Lydall’s wetlaid microglass media (LyPore XL). “The partnership is a bonus for both companies.”
More recently, Ahlstrom announced its intent to expand its capacity in solvent-treated filtration materials for the automotive market. “The expansion involves a series of smaller investments across our global manufacturing sites over the next few years,” stated Jerome Barrillon. “We will match these investments to customer demand. We have already begun the process in Turin, Italy and should see an increase in capacity of around 15%.”
Also expected to add to Ahlstrom’s filtration business is the start up of the new fine fiber production line in Turin, Italy that took place in June 2005. “The new line is based on custom melt-spinning technology and can use multiple polymers to create composite and calendered products for a number of applications for air, liquid and engine filtration.”
Glass Nonwovens
Ahlstrom’s Glass nonwovens business serves the windmill, marine and transportation markets with a range of specialty reinforcements and glassfiber tissues. The business serves its customers globally from its two manufacturing units in Finland.
The glass nonwovens market remained competitive throughout 2004 and increased its volumes by 8% despite intense price competition. Investments in 2004 included a further expansion of its glass tissue line and a cold repair of the glass furnace."