01.01.08
Location: BENGTSFORS, SWEDEN
Sales: $86 million
Description: Key Personnel
Andreas Norman, vice president of sales and marketing
Plant Locations
Sweden—Skåpafors and Dals Långe
Applications
Tabletop, wipes, feminine hygiene, adult incontinence
Processes
Airlaid
Rexcell Tissue & Airlaid AB—known until December 2004 as Duni Papermills— shares a long history with the Duni Group but is working hard to establish its own identity as an airlaid manufacturer. While Rexcell is currently owned by tabletop company Duni AB, a member of private equity firm EQT, there has been speculation for some time that Rexcell would be spun off in an initial public offering but to date no such decision has been finalized.
Rexcell became the first European maker of commercialized airlaid nonwovens in 1982 when it launched a small line in Sweden. This line was followed with a 1.6 meter line featuring flexibility in bonding choices, which came onstream in 1986, and a 2.6 meter airlaid line (TM2) in 1996. The original pilot line was closed when TM2 was opened.
Rexcell’s current airlaid capacity is currently about 30,000+ tons, which executives said is under great demand, a situation that will likely force the company to make an investment decision in the near term.
Characterizing the European airlaid market as stable with a good and healthy increase in demand, Andreas Normen, company spokesman, reported that sales in 2007 increased to SEK 544 million thanks largely to increased recouped from a constant improvement program in both quality and capacity as well as high demand for airlaid. “We are growing mainly because of the capacity and quality improvements in combination with good demand for airlaid,” he said. Raw material and energy price increases are the main drivers of an increased cost situation.”
Currently, about 98% of Rexcell’s airlaid business exists in Europe, where it has a reported 20% marketshare, and while other airlaid producers have already implemented and finalized plans for expansion, Rexcell feels caution is the best course of action when investing because of the threat of overcapacity concerns. “When you look at the situation with some of the companies in North America a few years ago—and some are even still struggling—you realize you have to be careful about these things,” Mr. Uttersav explained.
Rexcell’s overall business is split evenly between tissue and airlaid. Key airlaid markets include tabletop, which is partially fueled by supply to its parent company, as well as wipes, feminine hygiene and adult incontinence. All of its airlaid output is based on natural fibers and, unlike some of its competitors, Rexcell has no capabilities in the synthetic realm.
Looking forward, Mr. Norman said Rexcell’s main focus will be keeping up with market demands in terms of both capacity and quality. “Of course, the general economic situation is vital for all business,” he said. “We will keep providing out customers with proven performance to secure their successs in their markets and to growth with them as a premium supplier of premium material.”
Sales: $86 million
Description: Key Personnel
Andreas Norman, vice president of sales and marketing
Plant Locations
Sweden—Skåpafors and Dals Långe
Applications
Tabletop, wipes, feminine hygiene, adult incontinence
Processes
Airlaid
Rexcell Tissue & Airlaid AB—known until December 2004 as Duni Papermills— shares a long history with the Duni Group but is working hard to establish its own identity as an airlaid manufacturer. While Rexcell is currently owned by tabletop company Duni AB, a member of private equity firm EQT, there has been speculation for some time that Rexcell would be spun off in an initial public offering but to date no such decision has been finalized.
Rexcell became the first European maker of commercialized airlaid nonwovens in 1982 when it launched a small line in Sweden. This line was followed with a 1.6 meter line featuring flexibility in bonding choices, which came onstream in 1986, and a 2.6 meter airlaid line (TM2) in 1996. The original pilot line was closed when TM2 was opened.
Rexcell’s current airlaid capacity is currently about 30,000+ tons, which executives said is under great demand, a situation that will likely force the company to make an investment decision in the near term.
Characterizing the European airlaid market as stable with a good and healthy increase in demand, Andreas Normen, company spokesman, reported that sales in 2007 increased to SEK 544 million thanks largely to increased recouped from a constant improvement program in both quality and capacity as well as high demand for airlaid. “We are growing mainly because of the capacity and quality improvements in combination with good demand for airlaid,” he said. Raw material and energy price increases are the main drivers of an increased cost situation.”
Currently, about 98% of Rexcell’s airlaid business exists in Europe, where it has a reported 20% marketshare, and while other airlaid producers have already implemented and finalized plans for expansion, Rexcell feels caution is the best course of action when investing because of the threat of overcapacity concerns. “When you look at the situation with some of the companies in North America a few years ago—and some are even still struggling—you realize you have to be careful about these things,” Mr. Uttersav explained.
Rexcell’s overall business is split evenly between tissue and airlaid. Key airlaid markets include tabletop, which is partially fueled by supply to its parent company, as well as wipes, feminine hygiene and adult incontinence. All of its airlaid output is based on natural fibers and, unlike some of its competitors, Rexcell has no capabilities in the synthetic realm.
Looking forward, Mr. Norman said Rexcell’s main focus will be keeping up with market demands in terms of both capacity and quality. “Of course, the general economic situation is vital for all business,” he said. “We will keep providing out customers with proven performance to secure their successs in their markets and to growth with them as a premium supplier of premium material.”