2018 Nonwovens Sales: $133 million
Ekerem Kayali, chairman; Ayse Kayali, executive board member; Serkan Gogus, CEO; Darryl Fournier, president, Mogul South Carolina Nonwovens Corp.; Ersin Kosker, COO
Gaziantep, Turkey; Durabey-Istanbul, Turkey; Gray Court, SC
Spunbond (including bico and microfilament technologies), meltblown, spunlace, extrusion coated/laminated fabrics, PEVA films, welded fabrics, converting
Bedding and furniture, medical, agriculture-landscape, luggage and shoe linings, filtration, oil sorbents/spill control, wipes, protective apparel, construction, hygiene, automotives, fabric softeners, laminating/coatings substrates, packaging, vacuum cleaner dustings
Benefitting from recent investments including new sites in Luleburgaz, Turkey, and Grey Court, SC, Mogul’s nonwovens sales increased to $133 million in 2018, however 2019 sales will be negatively impacted by the sale of Mogul’s U.S. operation which was finalized in January.
Mogul sold its spunlace operation in Grey Court to Fibertex Nonwovens earlier this year, just 18 months after it began operation. The facility contains one 3.2 meter high-seed parallel laid spunlace line with 15,000 tons of capacity.
Divesting the U.S. operation made good financial sense for the company, according to CEO Serkan Gogus.
“Besides the negative economic climate in Turkey, significant changes in government policies in energy sector made such investments unfeasible,” he says. “Also it turned out that payback time of U.S. investment seems to be longer than anticipated which we had to finance in the short term so we decided to sell U.S. investment and use it to strengthen our financial status and reduce overall indebtedness. We also decided to quit the energy business and focus on core strengths.”
One area of intense interest is Madaline, Mogul’s microfilament hybrid technology that can achieve fabric properties close to conventional textiles to target not only classic nonwoven end uses, but also apparel, upholstery and home textile applications.
“Madaline is a unique technology and fabric,” Gogus says. “It bridges the gap between conventional textiles and nonwovens. We especially target apparel and home textile applications and we have ongoing development efforts with global brands.”
Mogul makes Madaline at its new site in Luleburgaz, Turkey. This site also houses a line featuring crosslapping technology to make products featuring complex fibers, filaments and web formations as well as chemical treatments and printing applications. Mogul is marketing the materials made on this line under the Durell brand, saying it complements existing spunlace fabric offerings and helps expand its role in the automotive, artificial leather, dry wipes, depilation pads, roofing, medical and hygiene applications.
For the short term, Mogul will focus on these new investments and the technologies they yield, hoping to grow in existing markets and opening up new business opportunities.
“In next couple of years we plan to digest new investments and strengthen our positions,” Gogus says. “For sure we continuously think and work on new projects but there is no plan for expansion in the short term.”
In short, the company plans to renovate and debottleneck existing lines to ensure the capacity is fully utilized and increase sales. Once that is done, the company will resume looking at new investment ideas to diversify its product range and complement existing products.