01.01.07
Location: Memphis, TN
Sales: $259 million
Description: Key Personnel
Marko Rajamaa, senior vice president, nonwovens; Chip Aiken, senior vice president, manufacturing; Mike Brown, nonwovens sales manager—Americas and Far East; Norbert Busch, nonwovens sales manager—Europe and the Middle East; Laurence Li, nonwovens division technology manager
Plants
Delta, British Columbia, Canada; Steinfurt, Germany; Gaston, NC
Processes
Latex bonded, thermal bonded and multibonded airlaid
Brand Names
Vicell, Vizorb, Unicore, Duocore, Walkisoft, Airspun
Major Markets
Feminine hygiene, baby diapers, adult incontinence, premoistened wipes, moist tissue, medical, tabletop, wipers, filtration, food packaging, household cleaning products
Continuing its turnaround is airlaid producer Buckeye Technologies, a company that has steadily been fighting back from a severe overcapacity situation that rocked the entire airlaid segment in 2001. The Memphis, TN-based company has been able to steadily increase its sales and earnings thanks to both organic growth as well as new market development, according to sales manager Michael Brown. “The trend has been improving for Buckeye and for airlaid in general,” he said.
During the year ended June 30, Buckeye’s nonwovens sales, increased to nearly $259 million compared to $241 million the prior year. At the same time, operating income in the segment increased from $16 million to $21 million.
While Buckeye is doing better at filling up the excess capacity, the company maintains that there is still some available, especially in North America. “We are full but we have capacity remaining because we only staff our sites to fill our market needs,” Marko Rajamaa, senior vice president of nonwovens, said. “Even in Europe, we have some capacity remaining, although it’s a tighter situation than in the U.S.”
Buckeye executives credit a couple of factors for this turnaround. For one, timing played a role and it has been a natural market evolution to absorb the capacity. This was helped of course by Buckeye’s decision three years ago to shutter its Cork, Ireland facility—as well as similar moves by Buckeye competitors.
Wipes continue to be a strong market for Buckeye. In fact, the company’s role in the market has only grown as airlaid has become more competitive with spunlace amidst raw material increases and other pressures facing spunlace manufacturers.
And, while the baby wipes market has been characterized by razor thin margins forcing Buckeye to really step up its efficiency, there are still pockets of this segment—as well as other wipes areas—where value and innovation are rewarded. “In the businesses we are in, we are actually making money,” said Mr. Rajamaa. “It wasn’t always that way.”
Meanwhile, the diaper core market—once considered the holy grail for airlaid producers—is not on Buckeye’s radar except for some smaller, niche applications such as premature and swim style diapers.
In investment news, Buckeye recently made significant improvements to its older line in Gastonia, NC to make it more market capable, according to executives. This meant adding new fiber capacity, modernizing the equipment, and improving the quality of the line, which came onstream in 1993.
One advantage Buckeye has had over competing technologies is that pulp has escaped some of the price increases found in other raw materials such as viscose or polypropylene, the key ingredients in spunlace and spunbond nonwovens. “As a renewable material, pulp is not subject to the same fluctuations as viscose and other oil-based raw materials,” Mr. Rajamaa said.
Sales: $259 million
Description: Key Personnel
Marko Rajamaa, senior vice president, nonwovens; Chip Aiken, senior vice president, manufacturing; Mike Brown, nonwovens sales manager—Americas and Far East; Norbert Busch, nonwovens sales manager—Europe and the Middle East; Laurence Li, nonwovens division technology manager
Plants
Delta, British Columbia, Canada; Steinfurt, Germany; Gaston, NC
Processes
Latex bonded, thermal bonded and multibonded airlaid
Brand Names
Vicell, Vizorb, Unicore, Duocore, Walkisoft, Airspun
Major Markets
Feminine hygiene, baby diapers, adult incontinence, premoistened wipes, moist tissue, medical, tabletop, wipers, filtration, food packaging, household cleaning products
Continuing its turnaround is airlaid producer Buckeye Technologies, a company that has steadily been fighting back from a severe overcapacity situation that rocked the entire airlaid segment in 2001. The Memphis, TN-based company has been able to steadily increase its sales and earnings thanks to both organic growth as well as new market development, according to sales manager Michael Brown. “The trend has been improving for Buckeye and for airlaid in general,” he said.
During the year ended June 30, Buckeye’s nonwovens sales, increased to nearly $259 million compared to $241 million the prior year. At the same time, operating income in the segment increased from $16 million to $21 million.
While Buckeye is doing better at filling up the excess capacity, the company maintains that there is still some available, especially in North America. “We are full but we have capacity remaining because we only staff our sites to fill our market needs,” Marko Rajamaa, senior vice president of nonwovens, said. “Even in Europe, we have some capacity remaining, although it’s a tighter situation than in the U.S.”
Buckeye executives credit a couple of factors for this turnaround. For one, timing played a role and it has been a natural market evolution to absorb the capacity. This was helped of course by Buckeye’s decision three years ago to shutter its Cork, Ireland facility—as well as similar moves by Buckeye competitors.
Wipes continue to be a strong market for Buckeye. In fact, the company’s role in the market has only grown as airlaid has become more competitive with spunlace amidst raw material increases and other pressures facing spunlace manufacturers.
And, while the baby wipes market has been characterized by razor thin margins forcing Buckeye to really step up its efficiency, there are still pockets of this segment—as well as other wipes areas—where value and innovation are rewarded. “In the businesses we are in, we are actually making money,” said Mr. Rajamaa. “It wasn’t always that way.”
Meanwhile, the diaper core market—once considered the holy grail for airlaid producers—is not on Buckeye’s radar except for some smaller, niche applications such as premature and swim style diapers.
In investment news, Buckeye recently made significant improvements to its older line in Gastonia, NC to make it more market capable, according to executives. This meant adding new fiber capacity, modernizing the equipment, and improving the quality of the line, which came onstream in 1993.
One advantage Buckeye has had over competing technologies is that pulp has escaped some of the price increases found in other raw materials such as viscose or polypropylene, the key ingredients in spunlace and spunbond nonwovens. “As a renewable material, pulp is not subject to the same fluctuations as viscose and other oil-based raw materials,” Mr. Rajamaa said.