01.01.05
(formerly Colbond)
Location: Arnhem, The Netherlands
Sales: $265 million
Description: Colbond Inc.
Enka, NC
Key Personnel
Jan van Boldrik, CEO; Axel Poscher, vice president; Bart Austin, president Colbond Inc.; Randy Cook, director sales and marketing, flooring; Harry Verbakel, director sales and marketing automotive; Rob Noppen, director sales and marketing, construction industry; Blair Rawes, director sales and marketing, civil engineering; Joe Luna, director sales and marketing, building and industrial applications
Plants
Emmen and Arnhem, The Netherlands; Obernburg, Germany; Asheville, NC
ISO Status
All European plants ISO 9001:2000 certified, US plant QS 9000 certified
Processes
Chemical bonded, thermal bonded and specialties
Brand Names
Colback, Colfors, Enkamat, Enkadrain, Colbonddrain, Enkagrid, Armater, Enka-Spacer, Enka-Vent
Major Markets
Flooring, automotive, construction industry, civil engineering, building and various industrial applications
Thanks to a strong market approach and continued development of new applications and products, 2004 sales increased for Colbond, Arnhem, The Netherlands, despite an economic downturn, fiercer competition, increasing pressure on prices and ongoing raw material price hikes. The company anticipates continued growth, although raw material costs are expected to further increase and a turnaround is not yet expected on oil pricing. “The magnitude of cost inflation forced us to pass on part of the costs to our customers,” commented Jan van Boldrik, CEO, “but the duration and scale of the situation will no doubt negatively impact margins.”
One possible response to soaring raw material costs is replacing or combining raw materials. “This, however, is no short-term action and requires careful and thorough consideration prior to market introduction,” said Blair Rawes, Colbond’s director sales and marketing, civil engineering. He explained that effective January 2005, Colbond increased prices worldwide for its entire product range in the 8-10% range.
“Since January 2003, polyester, polyamide and polypropylene chip costs increased by 30%-45% (20% of which happened in 2004) and a turnaround is not yet to be observed,” Mr. Rawes added. “We delayed the price increase for as long as possible; however, the magnitude of cost inflation unfortunately leaves us no other option than to pass on part of the costs in increased sales prices.”
On the up side, Colbond has benefited from the strength of its well-defined structure, which includes five key areas—flooring, automotive, construction, civil engineering and building and industrial products. The company has continued to make the most of its core competence, which lies in proven technologies and specialized technological expertise. “In close cooperation with our business partners, Colbond develops tailor-made products to provide value-added solutions to our broad customer base. Operating in this business for several decades, we know the ropes in the fields of extrusion, spinning, fleecing and molding of various synthetic materials,” said Mr. van Boldrik.
In the flooring market, conditions are stable, however, companies operating in this market are increasingly being confronted with strong competition, much of it originating from Asia. Colbond reported substantial growth in the European flooring segment, including the increased use of Colback in artificial turf, and the successful introduction of Colback as reinforcement for cushion vinyl. As one of Colbond’s core brands, Colback thermal bonded nonwovens continue be the most important technology for its flooring business. Its uniform structure, high tear resistance and isotropic characteristics make Colback particularly suitable for use as primary backing in patterned broadloom carpeting, carpet tiles and walk-off mats.
The portfolio of products offered by Colbond to the automotive industry now includes a new nonwoven backing launched under the brand name Colback Pro. The filaments of the product consist of a polyester core covered with a polypropylene skin. This specific composition allows the nonwoven to be used behind the most complex and deep molded car carpets manufactured at the highest quality standards. With Colback Pro, low molding temperatures allow for short molding cycle times, and the high dimensional stability of the carpet ensures a tight and close fit of the carpet in the car interior.
While the growth of the automotive market has been positive, Colbond has seen distinct volume growth in the construction market in Europe and the U.S. Pursuing a strategy to focus on high-grade specialty products, production for Coltron, a spunlaid polyester product was halted in 2004. To widen the assortment of nonwovens for use as carriers in waterproof bituminous roofing membranes (WBM), the company has introduced its Colfors product to a large number of customers in Europe.
In the segment of civil engineering, Colbond has enjoyed strong performance in Europe and the U.S. with sales volume of erosion mats exceeding expectations. “As far as Colbond is concerned, we notice growth in the building market segment in the U.S. In Europe, tunneling shows strong growth, while the Eastern European countries have exhibited a substantial increase with Enkagrid in soil stabilization projects,” Mr. Rawes said.
In mid-2004 the company introduced its Enkadrain B10 product for both horizontal and vertical structural drainage, which achieved significant success in Europe. Enkadrain B10 is a light and flexible composite matting made up of a drainage core of looped filaments securing a high drainage capacity throughout the service life of the structure. The components are thermally bonded together over the entire contact area.
Also in 2004, Enkamat II was introduced in the U.S. Designed as an immediate solution to erosion control problems, Enkamat II is a next generation turf reinforcement mat (TRM) combining the technology of the original Enkamat with cutting edge developments of fiber-reinforced biodegradable materials. Featuring a 95% open structure, the product creates the optimum micro-environment to enhance seed germination and plant emergence.
As part of its product range for drainage in civil engineering applications, Colbond offers a wide range of 3-D polymeric drainage products, sold under the trademarks Enkadrain and Colbonddrain.
As for building and industrial products, Colbond achieved positive results in both Europe and the U.S. As a specialist in reinforcements for bituminous membranes in the construction industry, Colbond recently launched Enkaroof Vent 7008 consisting of a nylon entangled ventilation net bonded to a waterproof breathable membrane in the U.S. building market. This new product provides waterproofing and a ventilation airspace to prevent corrosion and rust from developing on the backside of metal roofs. It also controls sound noise by up to 15 db. (A reduction by 10 db represents a felt reduction of 50%.) The membrane by itself will also have applications as a housewrap, window tape and anti-fracture mat for the tile industry.
In addition to product innovation, Colbond looks into capacity expansion as a strategy for further growth. At its Emmen facility, the company initiated a capacity increase a few years ago to meet the strong demand for Colback fabrics to safeguard supply continuity to costumers, to allow for continuous development of innovative products and support applications in new markets and to provide the right price/performance ratio. According to Colbond, the results are in line with company expectations. The same was stated regarding its 2003 expansion of the Enkamat lines at its Asheville, NC and Germany facilities, which are in full swing and performing according to expectations as well. Additional product lines allowed the company to further improve its services offered to key customers in both the civil engineering and building market, allowing for even more flexibility to react quickly in line with the demands of these fast changing segments.
Looking ahead, Mr. van Boldrik offered a vision for the future of the industry. “We believe that the nonwovens market still has considerable growth potential,” he said. “Exploiting this potential to the full extent is a matter of providing the right products at the right time and the right price/performance ratio. Customer focus, added value solutions, creativity, high-level service and sustainable product development are no buzz words in this respect but vehicles for the years to come. Growth will not occur all by itself.”
Location: Arnhem, The Netherlands
Sales: $265 million
Description: Colbond Inc.
Enka, NC
Key Personnel
Jan van Boldrik, CEO; Axel Poscher, vice president; Bart Austin, president Colbond Inc.; Randy Cook, director sales and marketing, flooring; Harry Verbakel, director sales and marketing automotive; Rob Noppen, director sales and marketing, construction industry; Blair Rawes, director sales and marketing, civil engineering; Joe Luna, director sales and marketing, building and industrial applications
Plants
Emmen and Arnhem, The Netherlands; Obernburg, Germany; Asheville, NC
ISO Status
All European plants ISO 9001:2000 certified, US plant QS 9000 certified
Processes
Chemical bonded, thermal bonded and specialties
Brand Names
Colback, Colfors, Enkamat, Enkadrain, Colbonddrain, Enkagrid, Armater, Enka-Spacer, Enka-Vent
Major Markets
Flooring, automotive, construction industry, civil engineering, building and various industrial applications
Thanks to a strong market approach and continued development of new applications and products, 2004 sales increased for Colbond, Arnhem, The Netherlands, despite an economic downturn, fiercer competition, increasing pressure on prices and ongoing raw material price hikes. The company anticipates continued growth, although raw material costs are expected to further increase and a turnaround is not yet expected on oil pricing. “The magnitude of cost inflation forced us to pass on part of the costs to our customers,” commented Jan van Boldrik, CEO, “but the duration and scale of the situation will no doubt negatively impact margins.”
One possible response to soaring raw material costs is replacing or combining raw materials. “This, however, is no short-term action and requires careful and thorough consideration prior to market introduction,” said Blair Rawes, Colbond’s director sales and marketing, civil engineering. He explained that effective January 2005, Colbond increased prices worldwide for its entire product range in the 8-10% range.
“Since January 2003, polyester, polyamide and polypropylene chip costs increased by 30%-45% (20% of which happened in 2004) and a turnaround is not yet to be observed,” Mr. Rawes added. “We delayed the price increase for as long as possible; however, the magnitude of cost inflation unfortunately leaves us no other option than to pass on part of the costs in increased sales prices.”
On the up side, Colbond has benefited from the strength of its well-defined structure, which includes five key areas—flooring, automotive, construction, civil engineering and building and industrial products. The company has continued to make the most of its core competence, which lies in proven technologies and specialized technological expertise. “In close cooperation with our business partners, Colbond develops tailor-made products to provide value-added solutions to our broad customer base. Operating in this business for several decades, we know the ropes in the fields of extrusion, spinning, fleecing and molding of various synthetic materials,” said Mr. van Boldrik.
In the flooring market, conditions are stable, however, companies operating in this market are increasingly being confronted with strong competition, much of it originating from Asia. Colbond reported substantial growth in the European flooring segment, including the increased use of Colback in artificial turf, and the successful introduction of Colback as reinforcement for cushion vinyl. As one of Colbond’s core brands, Colback thermal bonded nonwovens continue be the most important technology for its flooring business. Its uniform structure, high tear resistance and isotropic characteristics make Colback particularly suitable for use as primary backing in patterned broadloom carpeting, carpet tiles and walk-off mats.
The portfolio of products offered by Colbond to the automotive industry now includes a new nonwoven backing launched under the brand name Colback Pro. The filaments of the product consist of a polyester core covered with a polypropylene skin. This specific composition allows the nonwoven to be used behind the most complex and deep molded car carpets manufactured at the highest quality standards. With Colback Pro, low molding temperatures allow for short molding cycle times, and the high dimensional stability of the carpet ensures a tight and close fit of the carpet in the car interior.
While the growth of the automotive market has been positive, Colbond has seen distinct volume growth in the construction market in Europe and the U.S. Pursuing a strategy to focus on high-grade specialty products, production for Coltron, a spunlaid polyester product was halted in 2004. To widen the assortment of nonwovens for use as carriers in waterproof bituminous roofing membranes (WBM), the company has introduced its Colfors product to a large number of customers in Europe.
In the segment of civil engineering, Colbond has enjoyed strong performance in Europe and the U.S. with sales volume of erosion mats exceeding expectations. “As far as Colbond is concerned, we notice growth in the building market segment in the U.S. In Europe, tunneling shows strong growth, while the Eastern European countries have exhibited a substantial increase with Enkagrid in soil stabilization projects,” Mr. Rawes said.
In mid-2004 the company introduced its Enkadrain B10 product for both horizontal and vertical structural drainage, which achieved significant success in Europe. Enkadrain B10 is a light and flexible composite matting made up of a drainage core of looped filaments securing a high drainage capacity throughout the service life of the structure. The components are thermally bonded together over the entire contact area.
Also in 2004, Enkamat II was introduced in the U.S. Designed as an immediate solution to erosion control problems, Enkamat II is a next generation turf reinforcement mat (TRM) combining the technology of the original Enkamat with cutting edge developments of fiber-reinforced biodegradable materials. Featuring a 95% open structure, the product creates the optimum micro-environment to enhance seed germination and plant emergence.
As part of its product range for drainage in civil engineering applications, Colbond offers a wide range of 3-D polymeric drainage products, sold under the trademarks Enkadrain and Colbonddrain.
As for building and industrial products, Colbond achieved positive results in both Europe and the U.S. As a specialist in reinforcements for bituminous membranes in the construction industry, Colbond recently launched Enkaroof Vent 7008 consisting of a nylon entangled ventilation net bonded to a waterproof breathable membrane in the U.S. building market. This new product provides waterproofing and a ventilation airspace to prevent corrosion and rust from developing on the backside of metal roofs. It also controls sound noise by up to 15 db. (A reduction by 10 db represents a felt reduction of 50%.) The membrane by itself will also have applications as a housewrap, window tape and anti-fracture mat for the tile industry.
In addition to product innovation, Colbond looks into capacity expansion as a strategy for further growth. At its Emmen facility, the company initiated a capacity increase a few years ago to meet the strong demand for Colback fabrics to safeguard supply continuity to costumers, to allow for continuous development of innovative products and support applications in new markets and to provide the right price/performance ratio. According to Colbond, the results are in line with company expectations. The same was stated regarding its 2003 expansion of the Enkamat lines at its Asheville, NC and Germany facilities, which are in full swing and performing according to expectations as well. Additional product lines allowed the company to further improve its services offered to key customers in both the civil engineering and building market, allowing for even more flexibility to react quickly in line with the demands of these fast changing segments.
Looking ahead, Mr. van Boldrik offered a vision for the future of the industry. “We believe that the nonwovens market still has considerable growth potential,” he said. “Exploiting this potential to the full extent is a matter of providing the right products at the right time and the right price/performance ratio. Customer focus, added value solutions, creativity, high-level service and sustainable product development are no buzz words in this respect but vehicles for the years to come. Growth will not occur all by itself.”
