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    Editorial

    Still Strong After All These Years

    ...

    Still Strong After All These Years
    Spunmelt Surge
    02.05.15
    Four years ago, in our February 2011 issue, we reported on the great spunmelt surge of 2010-2011. At that time, there was an estimated 400,000 tons either planned or recently added in the global marketplace. Surely, we thought, this would be enough capacity to feed the global hygiene markets for a while and investment would soon come to a screeching halt.

    We were wrong.

    While the rate of investment in spunmelt has slowed (How could it not?), it has remained steady. Each year, a handful of companies announce plans to add a new line, whether it be in an established market for spunmelt like North America or Europe or in new frontiers like Southeast Asia or North Africa. 2014 was no different.

    During the past 12 months, considerably more than 100,000 tons of capacity has been added or announced in the spunbond/spunmelt category with new lines going into Spain, Sweden, Poland, Indonesia, Malaysia, Brazil, India and Turkey. As you can see, this expansion is comprensively global, targeting many different regions, countries and socioeconomic categories, showing us that most manufacturers agree that the increased demand for spunmelt nonwovens will continue.

    So what is driving this growth? It looks like there are a number of factors.

    On one hand, tremendous growth potential continues to exist in many hygiene markets. In developed world regions like the U.S. and Europe, a rapidly growing aging population is creating new opportunities for adult incontinence products; while in less developed areas, increasing birth rates and low penetration levels are expected to boost diaper sales.

    On the other hand, this investment is also being driven by technology advances. As companies want to be in the best position possible to respond to growth opportunities, there has been a race to install the most up-to-date assets possible. These new technologies can provide a product that is stronger, thinner and more flexible while allowing manufacturers to be extremely cost efficient, a necessity in the highly competitive hygiene market.

    Of course no one knows what factors lie in a company’s decision to spend millions of dollars on a new production line—is it to chase demand, keep up with the competition or get established in new markets? Still, tt will be interesting to see how things pan out. And, I wonder if new lines will keep coming…

    Karen McIntyre
    editor
    kmcintyre@rodmanmedia.com
    Related Searches
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