09.11.24
Prague, Czech Republic
www.pfnonwovens.com
2023 Nonwovens Sales: $600 million
Key Personnel
Marek Krejci, CEO; Shane Vincent, chief commercial officer; Rahul Nayak, vice president, global business development; Karthik Ramaratnam, vice president, global technology and innovation; Bart Wiertz, vice president, global sourcing
Plants
Czech Republic (Znojmo & Bucovice), Egypt (6th of October City), South Africa (Cape Town), United States (Hazleton, PA)
Processes
Spunbond, Meltblown, Bi-Component, air through bonding, proprietary in-line texturing technology
Major Markets
Personal care (baby diapers, adult incontinence, femcare, wipes), healthcare, industrial and agriculture
Total nonwovens sales were reported at $600 million for PFNonwovens, a maker of spunmelt nonwovens with plants in Pennsylvania, the Czech Republic, Egypt and South Africa, a decrease compared to 2022. The company currently operates a Reifenhauser Reicofil 5 line on each continent where it has a manufacturing operation, allowing it to offer high-performance and competitive materials to the personal care, healthcare and industrial markets.
Executives report that European demand for nonwovens had been decreasing since peak levels in 2020-2021 but is starting to come back to pre-pandemic levels. However, oversupply continues to exist in regions where significant capacity was added during Covid. This situation has been exacerbated by pricing challenges and lower consumer spending power.
“We are seeing two negative impacts coming together for nonwovens producers – customers demanding lower pricing, due to their consumers’ reduced ability to purchase, and oversupply in the market making those desired price levels more achievable,” says CEO Marek Krejci.
Additionally, pressure from Asian imports, caused by a severe supply/demand imbalance in the region, has also intensified pressure within the European nonwovens industry. At the same time, in North America, overcapacity persists, but demand is growing at a faster pace.
“While the markets are different, the overarching themes remain the same – oversupply, pressure from customers to deliver cost savings are at an all-time high—all resulting in unprecedented pressure on margins,” Krejci adds. “The prevailing theme over the last few years has become – expect the unexpected.”
In response to these challenges, PFNonwovens continues to focus on factors like energy usage and efficiency to reduce costs. The company’s recently implemented energy strategy focuses on supply insurance, cost reductions and reduced consumption. “In the past, energy purchasing was more transactional while today it has become a strategic focus area for PFN,” Krejci says.
Throughout the 2010s, PFNonwovens made significant investments, but the company has not added a new production line since 2022 when its finished work on two Reicofil 5 spunmelt lines—one in Hazleton, PA, and another in Cape Town, South Africa. PFNonwovens has also made recent investments in a semi-commercial Reicofil 5 spunbond line in Znojmo, Czech Republic, which includes pilot capabilities for developing lifecycle assessments in-house.
“We are able to start with ideation and complete with commercialization all at our site in Znojmo,” says CCO Shane Vincent. “Given the size of the line, we find it to be the right balance between a typical pilot line and a full-scale Reicofil line. In terms of product mix we are focused on soft, loft and sustainable materials.”
Amongst other things, the partial pilot line has allowed PFNonwovens to commercialize nonwovens made from PLA. “Reducing usage – innovative solutions that allow us to do more with less leading to the ability to downgauge materials while maintaining physical properties or even improving in some cases,” Vincent adds. “These solutions improve the sustainability profile and reduce cost to our customers.”
Looking ahead, PFNonwovens continues to evaluate opportunities for further investment but has not yet finalized any plans. The existing oversupply in the market combined with the fact that more capacity is being added creates a significant challenge to make a compelling business case for further investment at the current timing.
In the meantime, the company will continue to optimize its existing lines while focusing on improving its product mix, all with an eye toward its sustainability goals. Other areas of focus include recycling, where continuous work to identify and create opportunities during production is underway. Using post-consumer recycled materials remains a challenge but also an ambition for PFN.
“From a lower footprint materials standpoint, our ambition is to offer a full menu to customers,” Vincent says. “In our experience so far, there is no single solution that works for all customers. Bio-based materials are part of the menu – including 100% bio-sourced as well as mass-balanced solutions.”
www.pfnonwovens.com
2023 Nonwovens Sales: $600 million
Key Personnel
Marek Krejci, CEO; Shane Vincent, chief commercial officer; Rahul Nayak, vice president, global business development; Karthik Ramaratnam, vice president, global technology and innovation; Bart Wiertz, vice president, global sourcing
Plants
Czech Republic (Znojmo & Bucovice), Egypt (6th of October City), South Africa (Cape Town), United States (Hazleton, PA)
Processes
Spunbond, Meltblown, Bi-Component, air through bonding, proprietary in-line texturing technology
Major Markets
Personal care (baby diapers, adult incontinence, femcare, wipes), healthcare, industrial and agriculture
Total nonwovens sales were reported at $600 million for PFNonwovens, a maker of spunmelt nonwovens with plants in Pennsylvania, the Czech Republic, Egypt and South Africa, a decrease compared to 2022. The company currently operates a Reifenhauser Reicofil 5 line on each continent where it has a manufacturing operation, allowing it to offer high-performance and competitive materials to the personal care, healthcare and industrial markets.
Executives report that European demand for nonwovens had been decreasing since peak levels in 2020-2021 but is starting to come back to pre-pandemic levels. However, oversupply continues to exist in regions where significant capacity was added during Covid. This situation has been exacerbated by pricing challenges and lower consumer spending power.
“We are seeing two negative impacts coming together for nonwovens producers – customers demanding lower pricing, due to their consumers’ reduced ability to purchase, and oversupply in the market making those desired price levels more achievable,” says CEO Marek Krejci.
Additionally, pressure from Asian imports, caused by a severe supply/demand imbalance in the region, has also intensified pressure within the European nonwovens industry. At the same time, in North America, overcapacity persists, but demand is growing at a faster pace.
“While the markets are different, the overarching themes remain the same – oversupply, pressure from customers to deliver cost savings are at an all-time high—all resulting in unprecedented pressure on margins,” Krejci adds. “The prevailing theme over the last few years has become – expect the unexpected.”
In response to these challenges, PFNonwovens continues to focus on factors like energy usage and efficiency to reduce costs. The company’s recently implemented energy strategy focuses on supply insurance, cost reductions and reduced consumption. “In the past, energy purchasing was more transactional while today it has become a strategic focus area for PFN,” Krejci says.
Throughout the 2010s, PFNonwovens made significant investments, but the company has not added a new production line since 2022 when its finished work on two Reicofil 5 spunmelt lines—one in Hazleton, PA, and another in Cape Town, South Africa. PFNonwovens has also made recent investments in a semi-commercial Reicofil 5 spunbond line in Znojmo, Czech Republic, which includes pilot capabilities for developing lifecycle assessments in-house.
“We are able to start with ideation and complete with commercialization all at our site in Znojmo,” says CCO Shane Vincent. “Given the size of the line, we find it to be the right balance between a typical pilot line and a full-scale Reicofil line. In terms of product mix we are focused on soft, loft and sustainable materials.”
Amongst other things, the partial pilot line has allowed PFNonwovens to commercialize nonwovens made from PLA. “Reducing usage – innovative solutions that allow us to do more with less leading to the ability to downgauge materials while maintaining physical properties or even improving in some cases,” Vincent adds. “These solutions improve the sustainability profile and reduce cost to our customers.”
Looking ahead, PFNonwovens continues to evaluate opportunities for further investment but has not yet finalized any plans. The existing oversupply in the market combined with the fact that more capacity is being added creates a significant challenge to make a compelling business case for further investment at the current timing.
In the meantime, the company will continue to optimize its existing lines while focusing on improving its product mix, all with an eye toward its sustainability goals. Other areas of focus include recycling, where continuous work to identify and create opportunities during production is underway. Using post-consumer recycled materials remains a challenge but also an ambition for PFN.
“From a lower footprint materials standpoint, our ambition is to offer a full menu to customers,” Vincent says. “In our experience so far, there is no single solution that works for all customers. Bio-based materials are part of the menu – including 100% bio-sourced as well as mass-balanced solutions.”
