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    Features

    Avgol

    ...

    09.11.06
    Avgol
    Tel-Aviv, Israel
    www.avgol.com
    $160 million

    Key Personnel

    Shuki Goldwasser, chairman; Nir Peleg, CEO; Achai Bonneh, vice president of technology

    Plants

    Tel Aviv, Israel; Mocksville, NC, China, Eastern Europe

    ISO Status

    ISO 9002 Certified

    Processes

    Spunbonded, meltblown

    Brand name

    Zebra

    Major Markets

    Hygiene, medical, filtration, construction, agriculture, furniture, upholstery

    Sales reached $160 million last year for Tel Aviv, Israel-based Avgol Nonwoven Industries and this figure is expected to reach $220 million in 2006 as the company achieves full utilization of a new Reicofil spunmelt line started up in October 2005 at its Mocksville, NC facility. The new line is the second added to the site, which already contained a spunmelt line when Avgol acquired it from Unifi in 2002. Additionally, Avgol operates five spunmelt lines in Israel as well as another at a joint venture operation (with Hubei Goldkinglong Investment Stock Co. Ltd.) 300 miles southwest of Shanghai, China.

    According to Avgol CEO Nir Peleg, the Chinese joint venture is the result of a strategic decision to target markets prime for future growth. Next on Avgol’s global growth plan is Eastern Europe. In June, the company confirmed plans to build a new factory at an undisclosed Eastern European locations designed to serve emerging markets in Eastern Europe, Russia, the Ukraine and “Stan” countries. The factory is expected to begin operation by the fourth quarter of next year.

    In addition to capital investment, Avgol is set to benefit from its recent collaboration with Israel Petrochemical Enterprises (IPE). In June, the conglomerate, which already owned a 50% stake in Carmel Olefins, an Israeli producer of polypropylene and polyethylene resin, purchased 20% of Avgol’s outstanding shares. Mr. Peleg said that this partnership would further enable Avgol to globalize its brand name and establish synergies in Avgol’s raw material usage.

    Currently, 100% of Avgol’s output, of which 65% is produced outside Israel, consists of polypropylene-based spunmelt nonwovens, which largely targets the hygiene markets globally. With a reported 75% of its business conducted in North America, Avgol has been able to continue to this portion of its business successfully, as evidenced by the addition of a third line in North Carolina, while expanding globally.

    “Although we are a relatively small company, we are doing our best to emulate the multinational companies’ philosophy of thinking globally and acting globally,” said Mr. Peleg. “We continue to leverage our competitive advantage of efficiently employing young Reicofil spunmelt assets with innovation, execution and hands-on management across strategic geographies for consumer and industrial product applications.  By combining our technical and production know-how with targeted marketing and servicing of our bundle of quality spunmelt products, our organization has become a very reliable material supplier for our global and regional customers.”
    Related Searches
    • filtration
    • meltblown
    • spunbond
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