2013 Nonwovens Sales: $394 million
Herminio Freitas, president and CEO; Eduardo Feldmann, CFO; Alexandre Domeque, commercial director; Romeo Bregant, engineering andd technology director; Fabio Kryzanovski, operational director
Sao Jose dos Pinhais-Parana, Brazil; Pouso Alegre-Minas Gerais, Brazil; Statesville, NC, U.S.
Spunbond, SMS, meltblown, laminated nonwovens, printed nonwovens
Kami, Protect, Protect Advanced, Protect Ultra, Kami-Soft
Medical, agricultural, furniture and bedding, towel and coverlet, hygiene, filtration, wipes
This will be the last year Companhia Providencia is included in Nonwoven Industry’s annual top companies report as a stand-alone company. In June 2014, the Brazilian nonwovens producer was acquired by PGI Nonwovens. PGI announced it would buy Providencia in January.
“At Providencia, we are proud of our history in nonwovens manufacturing and the strong business we have built,” said Providencia CEO Herminio Vicente Smania de Freitas at the time of the acquisition. “We look forward to this next chapter in our business, as we work with PGI’s leadership to serve customers throughout Latin America with unmatched service, quality and innovation.”
Following the acquisition, Freitas is now president of PGI’s South America business including Argentina, Colombia and Brazil.
Prior to the acquisition, in 2013, Providencia reported a 27% jump in sales to $394 million, due largely to the full utilization of its 13th production line, which came onstream in Statesville, SC, U.S.—that site’s second machine—earlier in the year. In addition to adding to the company’s bottom line, this line has allowed Providencia to develop higher value-added items to improve the product mix available to U.S.-based customers.
J. Joel Hackney, CEO of PGI has said that the acquisition of Providencia will provide his company with immediate access to new technology and markets throughout the Americas.
“The acquisition of Providencia is exciting for PGI, as it aligns directly with our strategic commitment to global growth,” says Hackney. “Providencia has built a vibrant business serving customers focused on hygiene, healthcare and industrial applications, all of which are core focus areas for PGI. The complementary nature of our businesses and Providencia’s established relationships with its customers make it a perfect fit to join the PGI family.”
Providencia entered the U.S. market in 2010 with its first line in Statesville, SC. At the time, the company said it would add as many as four lines to the site but to date only two have been built there. Meanwhile, in Brazil, the company operates 11 lines at two sites—one in Sao Jose dos Pinhiars-Parana and one in Pouso Alegre.
The 11th Brazilian line was added in Pouso Alegrea in June 2012, adding 20,000 tons of capacity to the site, which now houses three lines. The company’s other site, in Jose dos Pinahais, was expanded regularly during the late 1990s and early 2000s and now houses eight lines. About 60% of pre-acquisition sales were conducted within Brazil.