01.01.10
Location: Basel, Switzerland
Sales: $156 million
Description: Key Personnel
Poul Mikkelsen, chairman; Stephen Landon, president and COO;
Finn Schoning, group controller; Ginny Casstevens, sales director – Americas; Jean Francois De Gruttola, key account director—USA; Richard Knowlson—global product development director; Alexis Porcher—global commercial manager; Chip Holton, vice president—Operations—USA; Gilles Hourlier, vice president—Operations—France
Plants
Asheville, NC and Soultz, France
Processes
Hydroentangling
Brand Names
Lidro, Rough N Soft, TAU
Major Markets
Personal Care, Home Care, Hygiene, Packaging, Specialty & Technical Industrial applications
While sales value fell slightly in 2009 for roll goods producer Jacob Holm Industries, sales volumes increased 12.5% to 927 million square meters during the same period as the company reported a change in sales mix beyond wipes to more lower basis weight, specialty products, as well as a general reduction in wipes prices following reduced raw material costs and movement to lower basis weights in wipes. Moving forward, the Swiss-based company expects to see sales rise by the end of this year to $173 million compared to $156 million last year on strong sales volume growth.
“This strong sales volume growth is being driven by operational performance and product rationalization in the U.S. as well as line upgrades in France,” explained president and COO Stephen Landon. “We are not just growing by getting better but by running longer runs of existing products. For example, in the U.S., we now have about 10 products that make up sales whereas in 2008 we had 15.”
Currently, all three of Jacob Holm’s spunlace lines, in North Carolina and France, continue to be sold out, running on a 24 hour-a-day, 365-day-per-year schedule. Therefore, without further investment, Jacob Holm has been relying on longer runs of existing products in the U.S. and line upgrades, including the world’s most advanced filtration system, in France, for growth, but Mr. Landon admits there is only so much output that can be squeezed out of existing lines. “Have we maxed out? There is always scope for product rationalization but it’s always less and less and less,” he said. “Another line in North America is the most profitable growth option.”
While a plan for a second North American line—the first was added in 2005—has not yet been finalized, the company is in the final planning stages for such an investment, which is largely being driven by new value-added spunlace applications for both wipe and non-wipe applications. “In the Americas, Jacob Holm is excited by the unprecedented interest in new value added spunlace applications, for both wipes and non wipes, and this in turn is driving our U.S. capacity expansion planning,” Mr. Landon explained. “It is clear that while some existing U.S. spunlace capacity was underutilized and even removed in 2009, this is more to do with lack of capabilities than a lack of market demand for capable and competitive assets and products,” Mr. Landon explained.
Until the new line is finalized, Jacob Holm will continue to support North American growth with exports from France, where the market continues to be described as stable with recent new opportunities to display its capabilities such as sustainable wipes and new fiber innovation. In fact, the business has been defined by a focus on new product development outside of commodity wipes to maintain margins. “Standard wipes continue to see major new staple fiber type substitutions to control costs,” Mr. Landon said. “This will allow Jacob Holm more room to showcase processing capabilities.”
Amidst this, Eastern Europe is showing major growth opportunities for the company and 2009 saw significantly increased sales volumes to Poland, Czech Republic and Hungary as well as the group’s first commercial orders in Russia. However, Turkey, which has been good for Jacob Holm in the past, is now in danger of facing excess capacity. In light of this, the company is targeting growth outside of standard commodity wipes.
While wipes continue to represent the bulk of Jacob Holm’s business, currently 25-30% of its total capacity is outside of the wipes market in a number of differentiated products. According to Mr. Landon, “This level of business, across many segments, has taken the last three years to achieve and allows us to be less dependent on the commodity wipes segment while also supporting innovation and investment where we believe we can drive the next generation of wipes.” Mr. Landon said. “We are working with customers to launch at least six high volume new innovative wipes programs in both North America and Europe.”
Sales: $156 million
Description: Key Personnel
Poul Mikkelsen, chairman; Stephen Landon, president and COO;
Finn Schoning, group controller; Ginny Casstevens, sales director – Americas; Jean Francois De Gruttola, key account director—USA; Richard Knowlson—global product development director; Alexis Porcher—global commercial manager; Chip Holton, vice president—Operations—USA; Gilles Hourlier, vice president—Operations—France
Plants
Asheville, NC and Soultz, France
Processes
Hydroentangling
Brand Names
Lidro, Rough N Soft, TAU
Major Markets
Personal Care, Home Care, Hygiene, Packaging, Specialty & Technical Industrial applications
While sales value fell slightly in 2009 for roll goods producer Jacob Holm Industries, sales volumes increased 12.5% to 927 million square meters during the same period as the company reported a change in sales mix beyond wipes to more lower basis weight, specialty products, as well as a general reduction in wipes prices following reduced raw material costs and movement to lower basis weights in wipes. Moving forward, the Swiss-based company expects to see sales rise by the end of this year to $173 million compared to $156 million last year on strong sales volume growth.
“This strong sales volume growth is being driven by operational performance and product rationalization in the U.S. as well as line upgrades in France,” explained president and COO Stephen Landon. “We are not just growing by getting better but by running longer runs of existing products. For example, in the U.S., we now have about 10 products that make up sales whereas in 2008 we had 15.”
Currently, all three of Jacob Holm’s spunlace lines, in North Carolina and France, continue to be sold out, running on a 24 hour-a-day, 365-day-per-year schedule. Therefore, without further investment, Jacob Holm has been relying on longer runs of existing products in the U.S. and line upgrades, including the world’s most advanced filtration system, in France, for growth, but Mr. Landon admits there is only so much output that can be squeezed out of existing lines. “Have we maxed out? There is always scope for product rationalization but it’s always less and less and less,” he said. “Another line in North America is the most profitable growth option.”
While a plan for a second North American line—the first was added in 2005—has not yet been finalized, the company is in the final planning stages for such an investment, which is largely being driven by new value-added spunlace applications for both wipe and non-wipe applications. “In the Americas, Jacob Holm is excited by the unprecedented interest in new value added spunlace applications, for both wipes and non wipes, and this in turn is driving our U.S. capacity expansion planning,” Mr. Landon explained. “It is clear that while some existing U.S. spunlace capacity was underutilized and even removed in 2009, this is more to do with lack of capabilities than a lack of market demand for capable and competitive assets and products,” Mr. Landon explained.
Until the new line is finalized, Jacob Holm will continue to support North American growth with exports from France, where the market continues to be described as stable with recent new opportunities to display its capabilities such as sustainable wipes and new fiber innovation. In fact, the business has been defined by a focus on new product development outside of commodity wipes to maintain margins. “Standard wipes continue to see major new staple fiber type substitutions to control costs,” Mr. Landon said. “This will allow Jacob Holm more room to showcase processing capabilities.”
Amidst this, Eastern Europe is showing major growth opportunities for the company and 2009 saw significantly increased sales volumes to Poland, Czech Republic and Hungary as well as the group’s first commercial orders in Russia. However, Turkey, which has been good for Jacob Holm in the past, is now in danger of facing excess capacity. In light of this, the company is targeting growth outside of standard commodity wipes.
While wipes continue to represent the bulk of Jacob Holm’s business, currently 25-30% of its total capacity is outside of the wipes market in a number of differentiated products. According to Mr. Landon, “This level of business, across many segments, has taken the last three years to achieve and allows us to be less dependent on the commodity wipes segment while also supporting innovation and investment where we believe we can drive the next generation of wipes.” Mr. Landon said. “We are working with customers to launch at least six high volume new innovative wipes programs in both North America and Europe.”