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    Sales Reports

    Fiberweb

    ...

    01.01.07
    Location: London, U.K.

    Sales: $1.08 billion

    Description: Fiberweb Americas
    Old Hickory, TN
    americas@fiberweb.com

    Plants
    Green Bay, WI; Queretaro, Mexico; Old Hickory, TN; Sao Jose dos Campos, Brazil; Simpsonville, SC; Washougal, WA

    Processes
    Chemical bonded, thermal bonding, meltblown, sorbent composites, spunbond PP, PE and PET, bicomponent spunbond PP, PE, PET, and PLA

    Brand Names
    Celestra, Excell, Reemay, Korma, Liberty, Qualiflo, Starweb, AQF, Securon, Terram, Typar, Softex, Sofspan, Webril, Biobarrier, Bidim, Linopor, UltraFlo

    Major Markets
    Construction and ground contact, consumer care, filtration, hygiene, medical and protective markets, industrial specialties, sorbent materials

    Fiberweb Asia
    Kowloon, Hong Kong
    asia@fiberweb.com

    Plant
    Tianjin, China

    Processes (including imports)
    Airlaid, chemical bonded, thermal bonding, meltblown, sorbent composites, spunbond PP, PE and PET, bicomponent spunbond PP, PE, PET, and PLA

    Brand Names (including imports)
    Celestra, Excell, Reemay, Korma, Starweb, AQF, Securon, Terram, Typar, Softex, Sofspan, Webril, Novonette, Biobarrier, Bidim, Linopor, UltraFlo

    Major Markets
    Construction and ground contact, consumer care, filtration, hygiene, medical and protective markets, industrial specialties, sorbent materials

    Fiberweb Europe
    Trezzano Rosa, Italy
    europe@fiberweb.com

    Plants
    Biesheim, France; Aschersleben, Germany; Berlin, Germany; Trezzano Rosa, Italy; Pontypool, U.K.; Norrköping, Sweden; Al-Khobar, Saudi Arabia (JV); Port Elizabeth, South Africa (JV), Peine, Germany; Peregallo di Lesmo, Italy, Terno d’Isola, Italy

    Processes
    Airlaid, chemical bonded, through air bonded, thermal bonding, meltblown, sorbent composites, spunbond PP, PE and PET, bicomponent spunbond PP, PE, PET, and PLA

    Brand Names
    Celestra, Excell, Reemay, Korma, Starweb, AQF, Securon, Terram, Typar, Softex, Sofspan, Webril, Novonette, Biobarrier, Bidim, Linopor, UltraFlo

    Major Markets
    Construction and ground contact, consumer care, filtration, hygiene, medical and protective markets, industrial specialties, sorbent materials


    It’s been a busy 12 months for Fiberweb (formerly BBA Fiberweb). Not only did the global nonwovens producer separate itself from parent company BBA Group in November 2006, it has spent much of 2007 streamlining its global business including the sale of some businesses and expansions in other areas.
     
    In 2006, the company reported a 3.1% sales decline to £584.7 million due largely to a North American restructuring program, announced in mid-2006.  This plan called for the closure of older production lines as well as the consolidation of Fiberweb’s Simpsonville, SC site into a smaller area. In June 2007, Fiberweb shut down two production lines—a narrow SMS line and a narrow spunbond line—in  Washougal, WA and in June closed an SMMMS barrier line, a spunbond line and a portion of a pilot line in Simpsonville. These closures followed the shutdown of Fiberweb’s Toronto facility, which included the transfer of one line to Mexico and one to Berlin, Germany, which fit more strategically with the company’s manufacturing infrastructure.
     
    Additionally, in December Fiberweb sold its remaining stake in CNC, a manufacturer of spunbonded nonwovens, to its joint venture partner CPPC, a Bangkok, Thailand-based diversified plastics company with annual sales exceeding $13 billion. Based in Rayong, Thailand, CNC has been producing nonwovens since 1996.
     
    More recently, Fiberweb announced in June it would close its Gray Court, SC plant, which contains a spunbond polyester production line, after efforts to improve the performance of this machine proved unsuccessful. Business on this line will be transitioned to other spunbond polyester lines at Fiberweb’s Old Hickory, TN facility.
     
    And, in a further streamlining of its business, in March the company sold its hygiene wipes business to Ahlstrom for a reported €65 million. The sale included assets in Bethune, SC, Spain and Italy, including lines acquired in recent years from Tenotex and

    Technofibra and representing about £83 million in annual sales for the company.
     
    “In 2006, a strategic analysis of the global wipes business revealed overcapacity in spunlace capacity in Europe and the U.S. as well as a large number of small competitors,” said director of marketing and business development Raymond Dun­leavy. “Subsequently, Fiberweb announced its intention to address the poor performance of its hygiene wipes business which includes spunlace operations around the world. The options available included a rationalization of the existing business, acquisitions of small competitors to consolidate industry or the sale to another who would be consolidated. Management felt that the sale of the business to Ahlstrom was the best course for our shareholders and employees in the affected units.”
     
    Amidst these closures and divestments, however, Fiberweb continues to invest in its business for future growth. According to Mr. Dunleavy, investment reached £51.4 million in 2006 and included a new 5.2 meter Reicofil spunbond line in Sweden, which is now onstream and running at full production, an airlaid line in Italy, a polyester recycling facility in Old Hickory, TN and investments in industrial sites in Brazil, the U.K. and Germany. Additionally, Fiberweb is underway with a new airlaid line in Tianjin, China, this plant’s second to serve feminine hygiene and adult incontinence customers. “Our global airlaid business is robust,” Mr. Dunleavy explained. “We have completed the installation and startup of a new state-of-the-art line in Italy and are now installing a second line in our plant in China. This capacity is targeted to the needs of our global hygiene customers that we already serve with spunmelt fabrics. A significant portion of this new capacity is now contracted.”
     
    Fiberweb continues to focus the nonwovens division on two key areas—hygiene and industrial. In 2006, Fiberweb’s hygiene business declined in the U.S. due to the Sim­psonville and Washougal closures during 2006 while in Europe the company continued to enjoy a market leading position, which is being enhanced by the new Swedish line. And, according to reports, additional investment in spunmelt will be made in the near term to support future growth in hygiene globally. “Fiberweb is one of the few nonwovens manufacturers with a global presence in the hygiene business, which we consider a competitive advantage in meeting the needs of global diaper and feminine hygiene marketers,” Mr. Dunleavy added.
     
    Also set to boost Fiberweb’s hygiene business is a new technology platform, currently under development, which will use low cost, sustainable raw materials. This technology will target both hygiene and industrial applications. “There is a growing awareness among consumers in the U.S. and Europe of our relationship with the planet and growing willingness to change habits and practices to be more environmentally responsible,” Mr. Dunleavy explained.
     
    Already, in April Fiberweb launched EcoFabrics, a line of nonwovens made from at least 50% renewable materials. The line features Ingeo fibers made from NatureWorks PLA resin and includes carded thermal and resin bonded nonwovens manufactured in Europe as well as unique bicomponent PP/PLA spunbond fabrics made in the U.S. Executives expect key applications for EcoFabrics to include food packaging and hygiene as well as a number of other traditional nonwovens markets.
     
    Meanwhile, the other leg of Fiberweb’s business, Industrial, grew 5% in 2006. Moving forward, executives expect to see growth continue in filtration applications but level off in construction due to weakness in the U.S. housing market. “Fiberweb enjoys strong technical, brand and marketshare positions in important segments of the large and growing market for industrial nonwoven fabrics, particularly filtration and the specialty construction segments. Our best prospects lie in these segments where technical differentiation, close customer contact, branding and innovation are valued,” Mr. Dunleavy said. “In addition, we continue to gain marketshare with the superior performance properties of our product line, even in the declining housing market.”
     
    In the weather protection market—an area considered prime for growth—Fiberweb has developed two new products. Typar MetroWrap is Fiberweb’s first introduction to the commercial market for Weather Resistant Barriers and Weather Protection Systems. MetroWrap is specifically designed for the needs of the commercial market with 12 months resistance to UV exposure and extra durability for high wind applications. Typar StormWrap is designed to withstand extreme weather conditions and protect building occupants from flying debris in high wind conditions such as those experienced during hurricanes.
     
    “Fiberweb continues to find other new applications for the Typar product line in areas where its tensile strength and rigidity add value,” Mr. Dunleavy said. “New products range from earth-filled, quick deployment barriers for military and emergency response markets to long-lasting can separator pads for the beverage industry.”
     
    In geotextiles, Fiberweb’s Terram operation in Pontypool, U.K. has developed new applications for traditional geotextile fabrics in civil and military defense programs. This development program began with highly engineered applications for road building and slope stablilization and has also found applications in novel, rapidly deployed geotextile barriers, used to create a safer work environment for fuel depots, fleet support and various other military field applications.
     
    Moving forward, Fiberweb will continue to examine its business for strengths as well as the nonwovens industry for its needs to plan for future growth. In fact, quicker response to the demands of the global nonwovens industry has been one of the key benefits of being separated from the BBA Group, according to Mr. Dunleavy. “The pace of decision making at Fiberweb has increased since our separation from the BBA Group in November 2006,” he said.
     
    “Fiberweb’s strategic intent is to create and sustain value by exploiting and developing our strengths in nonwovens and aggressively addressing our weaknesses,” he added. “An example of this is the divestiture of the wipes business earlier this year.”"
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