2013 Nonwovens Sales: $342 million
Michael Teacher, chairman; Shachar Rachim, interim CEO
Tel Aviv, Israel; Mocksville, NC, U.S.; Jingmen, City, Hubei Province, China: Uzlovaya, Russia
Spunbond, meltblown, hydroentangled spunlace
Zebra, Avspun, Avsoft
Hygiene, medical, construction
As its waits for its second Russian line to come onstream later this year, Avgol Nonwovens, Israel’s largest producer of nonwovens, continues to work on improving operating efficiencies on its existing lines, particularly in North America, where it operates a four-line facility in Mocksville, NC. In 2013, the company’s sales increased 9% to reach $342 million. Profits, meanwhile, declined 9% to $57 million.
Based in Tel Aviv, Israel, Avgol is one of the world’s largest makers of spunbond nonwovens for the global hygiene industry with facilities in Israel, North Carolina, China and Russia.
During the second quarter of 2013, the company’s third Chinese line, located in Hubei Province, completed the qualification process and began contributing to Avgol’s bottom line.
Avgol now operates 3 lines in China at a site it has operated since 2005 through a joint venture with Hubei GoldDragon. A second line was added to the site in 2011. According to company reports, growth in China has been slower than expected and a portion of the products made at this facility, which is now capable of making 40,000 tons of material per year, is currently serving demand in North America, a situation that is hurting profit margins.
However, the company has been focused on improving its operating efficiencies to increase capacity being made in the U.S. market. Once this project is complete, it should positively influence Avgol’s profit margins.
Also in the works is Avgol’s second line in Russia, a market described as robust by company officials. Line number two, which is expected to begin operation by the end of 2014, will meet demand for nonwovens in Russia and other adjacent markets when it adds approximately 20,000 tons of capacity to the site. Avgol entered the Russian market, where it is located in Uzlovaya in late 2007 to better serve emerging markets in Eastern Europe, Russia, the Ukraine and other “-stan” countries.