09.03.21
Shandong, China
www.jofo.com
2020 Nonwovens Sales: $230 million
Key Personnel
Minzhong Zhao, chairman; Rain Tan, CEO
Plants
Shandong, Guangdong, China
Processes
Spunmelt, spunbond, needlepunch, air through bonded
Major Markets
Hygiene, geotextiles, automotives, furniture
Acquisition coupled with increased demand for nonwovens helped drive sales higher at Jofo Nonwovens. The Shanghai, China-based nonwovens producer reported sales reached $230 million in 2020.
“We were all impacted by Covid-19 but in general the pandemic had a positive impact on our business,” says CEO Rian Tain. “We made some small adjustments for this special period. Originally, we had a comparatively fixed product line, but we adjusted the product line and product mix for the pandemic situation to meet the market demand to some extent.”
As it prepares for its next chapter for growth, Jofo has made a number of acquisitions and partnerships—both within and outside of China—that have not only added capacity but have expanded the company’s global scope.
The first of these in May 2020 in Wuxi, China, was a spunbond manufacturing site started by First Quality Nonwovens and later acquired by PFNonwovens, which has been in operation since 2009. “The acquisition of the PFN Wuxi site allowed us to enter the medical market as a new player,” Tian says. “This new location allows us to cover the needs of the East China market and respond more quickly in the market and logistics.”
Just five months after acquiring the site, Jofo has already begun construction on a second spunbond line there which is scheduled to begin production in the first half of next year.
In addition to the Wuxi site, a second acquisition—a spunbond operation in Saudi Arabia—is helping Jofo increase its role in the global medical and hygiene markets while expanding its global footprint. In July, Jofo purchased a 70% stake in Saudi Arabia Advanced Fabrics (SAAF) including two nonwovens manufacturing sites in Saudi Arabia.
“The acquisition of PFN Wuxi made us enter the medical non-woven fabric market, and then the acquisition of SAAF made us become an important nonwoven fabric manufacturer in the world, a competitive player in the world nonwoven fabric market and the largest medium and high-end manufacturer of medical nonwoven fabrics,” Tian says.
Having an operating site outside of China is also allowing the company to shorten its supply chain to its international customer bases. “Global expansion has brought great advantages of global geography to our strategy. The global layout makes our global supply chain service more efficient and convenient, while reducing transportation costs,” Tian says.
Back in Asia, Jofo Nonwovens has partnered with Soshio Industrial Co., a Hong Kong-based contract manufacturer for wipes maker Rockline Industries, to begin contract manufacturing finished products.
“This strategic step enables Jofo to promote its process of vertical integration of the industrial chain, expand the scope of business and most importantly enter into the OEM field on the basis of existing material production,” says Tian. “It also builds a solid foundation for Jofo to provide comprehensive service to global customers.”
The partnership will also allow Jofo to expand usage of its JoForm materials, which is made using P&G’s Phantom technology, of which Jofo is a licensed supplier.
“If we want to realize phantom technology and enter a new market, Soshio helps us make it happen and achieve mass production of this technology. The partnership between Jofo and Soshio can provide our customers with better, cheaper and faster products/services.”
In terms of greenfield investments, Jofo has added a manufacturing site in Thailand to better serve its customers all over the world and increase its role particularly in Southeast Asia.
www.jofo.com
2020 Nonwovens Sales: $230 million
Key Personnel
Minzhong Zhao, chairman; Rain Tan, CEO
Plants
Shandong, Guangdong, China
Processes
Spunmelt, spunbond, needlepunch, air through bonded
Major Markets
Hygiene, geotextiles, automotives, furniture
Acquisition coupled with increased demand for nonwovens helped drive sales higher at Jofo Nonwovens. The Shanghai, China-based nonwovens producer reported sales reached $230 million in 2020.
“We were all impacted by Covid-19 but in general the pandemic had a positive impact on our business,” says CEO Rian Tain. “We made some small adjustments for this special period. Originally, we had a comparatively fixed product line, but we adjusted the product line and product mix for the pandemic situation to meet the market demand to some extent.”
As it prepares for its next chapter for growth, Jofo has made a number of acquisitions and partnerships—both within and outside of China—that have not only added capacity but have expanded the company’s global scope.
The first of these in May 2020 in Wuxi, China, was a spunbond manufacturing site started by First Quality Nonwovens and later acquired by PFNonwovens, which has been in operation since 2009. “The acquisition of the PFN Wuxi site allowed us to enter the medical market as a new player,” Tian says. “This new location allows us to cover the needs of the East China market and respond more quickly in the market and logistics.”
Just five months after acquiring the site, Jofo has already begun construction on a second spunbond line there which is scheduled to begin production in the first half of next year.
In addition to the Wuxi site, a second acquisition—a spunbond operation in Saudi Arabia—is helping Jofo increase its role in the global medical and hygiene markets while expanding its global footprint. In July, Jofo purchased a 70% stake in Saudi Arabia Advanced Fabrics (SAAF) including two nonwovens manufacturing sites in Saudi Arabia.
“The acquisition of PFN Wuxi made us enter the medical non-woven fabric market, and then the acquisition of SAAF made us become an important nonwoven fabric manufacturer in the world, a competitive player in the world nonwoven fabric market and the largest medium and high-end manufacturer of medical nonwoven fabrics,” Tian says.
Having an operating site outside of China is also allowing the company to shorten its supply chain to its international customer bases. “Global expansion has brought great advantages of global geography to our strategy. The global layout makes our global supply chain service more efficient and convenient, while reducing transportation costs,” Tian says.
Back in Asia, Jofo Nonwovens has partnered with Soshio Industrial Co., a Hong Kong-based contract manufacturer for wipes maker Rockline Industries, to begin contract manufacturing finished products.
“This strategic step enables Jofo to promote its process of vertical integration of the industrial chain, expand the scope of business and most importantly enter into the OEM field on the basis of existing material production,” says Tian. “It also builds a solid foundation for Jofo to provide comprehensive service to global customers.”
The partnership will also allow Jofo to expand usage of its JoForm materials, which is made using P&G’s Phantom technology, of which Jofo is a licensed supplier.
“If we want to realize phantom technology and enter a new market, Soshio helps us make it happen and achieve mass production of this technology. The partnership between Jofo and Soshio can provide our customers with better, cheaper and faster products/services.”
In terms of greenfield investments, Jofo has added a manufacturing site in Thailand to better serve its customers all over the world and increase its role particularly in Southeast Asia.