Fibertex
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Location: Aalborg Ost, Denmark
Sales: $78 million
Description: Key Personnel
Knud Waede Hansen, managing director; Knud Erik Justesen, deputy managing director; Jesper Frank Carstens, general manager, needlepunch division; Mikael Staal Axelsen, general manager, spunbond divisions; Etienne Ficht, business development manager
Plants
Two plants in Aalborg, Denmark; one in Malaysia (under construction)
ISO Status
ISO 9001 certified, 1991; DES ISO 14001 environmental certification, 2001
Processes
Drylaid, needlepunched, spunbond/melt blown
Brand Names
Fibertex, Matchback, Comfortback, Flexback, Two-in-One, Formtex, Superflor, Alupor
Major Markets
Industrial textiles—primary and secondary carpet backings, automotive, furniture and bedding; technical textiles—building and construction, horticulture; hygiene; protective clothing; packaging
With a new ownership structure and concrete plans for expansion into Asia, Fibertex A/S, Aalborg, Denmark, is certainly poised for a bright future. The company was purchased by Aktieselskabet Schouw & Co. from its original owner, East Asiatic Company, which established Fibertex as a wholly-owned subsidiary in 1968. The change in ownership has not substantially affected the day-to-day operations of Fibertex, and the company management has remained the same, according to executives.
Schouw & Co. is a diversified group including various independent companies covering markets that range from lighting, wind powered energy production to packaging and industrial bakeries. The new ownership structure is expected to benefit Fibertex and its customers by providing long-term stability and additional investment capabilities.
“The new investor is an industrial conglomerate that invests in companies with leading positions in their fields,” CEO Knud Waede Hansen explained. “Not only does the new structure help our business today, it gives us support for long-term development.”
At the forefront of Fibertex’s long-term development strategy is the company’s plan, announced in April, to begin operating a facility in Malaysia—a move that not only represents the company’s first entry into Asia but also its first manufacturing capabilities outside of Denmark. Expected to be finished in the middle of 2003, the new facility will contain a state-of-the-art, multi-beam spunmelt line, which will target mainly hygiene applications but also produce goods for protective apparel and industrial clothing applications in the region. It is expected to add about $25 million per year to Fibertex’s overall sales.
“Malaysia is well suited for this investment,” Mr. Hansen said. “It is an area that is good for non-labor intensive operations and offers a positive business atmosphere.”
The new facility is not only expected to boost Fibertex’s sales in the Asia-Pacific market, which now represent approximately 10% of total sales, but will also boost the size of its hygiene business to exceed the needlepunch side of the company. This is a significant accomplishment considering Fibertex only entered the hygiene business in 1997 when it commissioned its first spunbond line. Despite the highly competitive nature of the hygiene market, Fibertex has been able to thrive in the area during the past five years. In 2001, the company’s spunbond sales increased from $20 million to $37.4 million, while the needlepunch side of the business decreased slightly from $41.6 million to $41.4 million. The sharp increase on the spunbond side of the business was the result of the addition of a second line at the end of 2000 as well as increased demand for Fibertex’s products by leading hygiene companies around the world, according to Mr. Hansen.
“A lot of people complain about the hygiene market, but it’s just that it is not a protected area anymore,” Mr. Hansen explained. “We are very happy that we made the strategic decision to move into the hygiene market. I think everybody will agree that competition has increased during the past several years, but you can still operate a good business if you have good organization and a good product mix across all of your markets.”
On the hygiene side of the business, Fibertex currently produces approximately 25,000 tons of spunbond material per year, mainly for barrier applications. The company produces this material on two lines—the first one commissioned in 1997 and the second brought onstream in 2000—at its Aalborg facility.
Moving away from hygiene, Fibertex’s needlepunch business, the area where it began, continues to fare well, mainly targeting the furniture and bedding, carpeting, automotive and technical markets. To further enhance this business, the company earlier this year reconfigured its five needlepunch lines, all located in Aalborg, to optimize them and increase their capacity. Mr. Hansen said that reconfiguring machinery increases productivity and subsequently generates a better return on the investment. Additionally, the company has been investing in research and development in this area to further diversify its offerings, a measure that Mr. Hansen describes as necessary in today’s competitive business climate.
Turning back to the hygiene side of the business, the company has been busy looking into the use of polypropylene metallocene in spunbond applications. Polypropylene metallocene, while more expensive than other grades of polypropylene, is ideal for fine fiber production to create more premium, softer hygiene products. Interest is particularly being paid to this technology for soft, elasticized products such as diaper leg cuffs and waist bands.
On the raw material side of the business, one way that Fibertex has been able to combat fluctuating costs has been producing its own polypropylene fiber for its needlepunch business since 1974. This move has further helped Fibertex boost its efficiencies. Another successful project was achieving DS ISO 14001 certification for environmental management in December 2001. The certification was reportedly the result of a year of intensive work by all the departments of Fibertex and is in sync with the company’s policy to develop, manufacture and supply high quality products and to act as a trustworthy and reliable supplier.
In the future, the company is expecting growth to come in the adult incontinence segments in developed areas such as North America and Europe and from increased baby diaper penetration in less developed regions such as Asia. “Our growth strategy is to increase capacity and production in markets where there is growth potential, while focusing on sophisticated product development in all of our areas,” Mr. Hansen said. “It’s a general concept but it’s true and valid.”
Sales: $78 million
Description: Key Personnel
Knud Waede Hansen, managing director; Knud Erik Justesen, deputy managing director; Jesper Frank Carstens, general manager, needlepunch division; Mikael Staal Axelsen, general manager, spunbond divisions; Etienne Ficht, business development manager
Plants
Two plants in Aalborg, Denmark; one in Malaysia (under construction)
ISO Status
ISO 9001 certified, 1991; DES ISO 14001 environmental certification, 2001
Processes
Drylaid, needlepunched, spunbond/melt blown
Brand Names
Fibertex, Matchback, Comfortback, Flexback, Two-in-One, Formtex, Superflor, Alupor
Major Markets
Industrial textiles—primary and secondary carpet backings, automotive, furniture and bedding; technical textiles—building and construction, horticulture; hygiene; protective clothing; packaging
With a new ownership structure and concrete plans for expansion into Asia, Fibertex A/S, Aalborg, Denmark, is certainly poised for a bright future. The company was purchased by Aktieselskabet Schouw & Co. from its original owner, East Asiatic Company, which established Fibertex as a wholly-owned subsidiary in 1968. The change in ownership has not substantially affected the day-to-day operations of Fibertex, and the company management has remained the same, according to executives.
Schouw & Co. is a diversified group including various independent companies covering markets that range from lighting, wind powered energy production to packaging and industrial bakeries. The new ownership structure is expected to benefit Fibertex and its customers by providing long-term stability and additional investment capabilities.
“The new investor is an industrial conglomerate that invests in companies with leading positions in their fields,” CEO Knud Waede Hansen explained. “Not only does the new structure help our business today, it gives us support for long-term development.”
At the forefront of Fibertex’s long-term development strategy is the company’s plan, announced in April, to begin operating a facility in Malaysia—a move that not only represents the company’s first entry into Asia but also its first manufacturing capabilities outside of Denmark. Expected to be finished in the middle of 2003, the new facility will contain a state-of-the-art, multi-beam spunmelt line, which will target mainly hygiene applications but also produce goods for protective apparel and industrial clothing applications in the region. It is expected to add about $25 million per year to Fibertex’s overall sales.
“Malaysia is well suited for this investment,” Mr. Hansen said. “It is an area that is good for non-labor intensive operations and offers a positive business atmosphere.”
The new facility is not only expected to boost Fibertex’s sales in the Asia-Pacific market, which now represent approximately 10% of total sales, but will also boost the size of its hygiene business to exceed the needlepunch side of the company. This is a significant accomplishment considering Fibertex only entered the hygiene business in 1997 when it commissioned its first spunbond line. Despite the highly competitive nature of the hygiene market, Fibertex has been able to thrive in the area during the past five years. In 2001, the company’s spunbond sales increased from $20 million to $37.4 million, while the needlepunch side of the business decreased slightly from $41.6 million to $41.4 million. The sharp increase on the spunbond side of the business was the result of the addition of a second line at the end of 2000 as well as increased demand for Fibertex’s products by leading hygiene companies around the world, according to Mr. Hansen.
“A lot of people complain about the hygiene market, but it’s just that it is not a protected area anymore,” Mr. Hansen explained. “We are very happy that we made the strategic decision to move into the hygiene market. I think everybody will agree that competition has increased during the past several years, but you can still operate a good business if you have good organization and a good product mix across all of your markets.”
On the hygiene side of the business, Fibertex currently produces approximately 25,000 tons of spunbond material per year, mainly for barrier applications. The company produces this material on two lines—the first one commissioned in 1997 and the second brought onstream in 2000—at its Aalborg facility.
Moving away from hygiene, Fibertex’s needlepunch business, the area where it began, continues to fare well, mainly targeting the furniture and bedding, carpeting, automotive and technical markets. To further enhance this business, the company earlier this year reconfigured its five needlepunch lines, all located in Aalborg, to optimize them and increase their capacity. Mr. Hansen said that reconfiguring machinery increases productivity and subsequently generates a better return on the investment. Additionally, the company has been investing in research and development in this area to further diversify its offerings, a measure that Mr. Hansen describes as necessary in today’s competitive business climate.
Turning back to the hygiene side of the business, the company has been busy looking into the use of polypropylene metallocene in spunbond applications. Polypropylene metallocene, while more expensive than other grades of polypropylene, is ideal for fine fiber production to create more premium, softer hygiene products. Interest is particularly being paid to this technology for soft, elasticized products such as diaper leg cuffs and waist bands.
On the raw material side of the business, one way that Fibertex has been able to combat fluctuating costs has been producing its own polypropylene fiber for its needlepunch business since 1974. This move has further helped Fibertex boost its efficiencies. Another successful project was achieving DS ISO 14001 certification for environmental management in December 2001. The certification was reportedly the result of a year of intensive work by all the departments of Fibertex and is in sync with the company’s policy to develop, manufacture and supply high quality products and to act as a trustworthy and reliable supplier.
In the future, the company is expecting growth to come in the adult incontinence segments in developed areas such as North America and Europe and from increased baby diaper penetration in less developed regions such as Asia. “Our growth strategy is to increase capacity and production in markets where there is growth potential, while focusing on sophisticated product development in all of our areas,” Mr. Hansen said. “It’s a general concept but it’s true and valid.”
Location: Aalborg Ost, Denmark
Sales: $89 million
Description: Key Personnel
Knud Waede Hansen, managing director; Knud Erik Justesen, deputy managing director; Jesper Bech Masen, general manager, needlepunch division; Mikael Staal Axelsen, general manager, personal care division; Etienne Ficht, business development manager
Plants
Two in Aalborg; one in Malaysia
ISO Status
ISO 9001 certified, 1991; DES ISO 14001 environmental certification, 2001
Processes
Drylaid, needlepunched, spunbond/meltblown
Brand Names
Fibertex, Matchback, Comfortback, Flexback, Two-in-One, Formtex, Superflor, Alupor
Major Markets
Industrial textiles—primary and secondary carpet backings, automotive, furniture and bedding; technical textiles—building and construction, horticulture; hygiene; protective clothing; packaging.
The ability to offer products with clear advantages of the competition has been the backbone of success for Fibertex, Aalborg Ost, Denmark. Not only has the company been able to build a successful spunmelt business during the past five years, it has also been able to continue its growth levels despite economic and pricing pressures in the industry.
In 2002, sales rose 7% to $89 million million while before-tax profit rose 11%. This growth has continued into 2003 and executives expect this to be a better year than last year.
Fibertex first entered the spunmelt market in 1998 when it decided to diversify from its core business of needlepunched nonwovens. Two years later, this side of the business received a boost when a second spunmelt line was added in Aalborg. In 2002, spunbond growth led to the division’s sales equaling needlepunch sales. In 2003, the size of the spunbond business is expected to dominate Fibertex’s overall sales at its Malaysian operation, featuring a multibeam spunmelt line, which will come onstream during the remainder of this year.
Expected to add $25 million per year to Fibertex’s annual sales, the Malaysian plant was announced in April 2002 and was completed ahead of schedule in June 2003. Output from the facility—Fibertex’s first outside of Denmark—will boost Asian sales, now representing 10% of overall business, while supplementing shipments to existing European and American customers.
The three southeast Asian countries most ripe for growth in Fibertex executives’ opinion are Malaysia, Japan and Thailand. The use of hygiene products in these three countries will continue to rise, quite a change from the mature markets of Europe, which represent 80% of current sales. Growth of diaper and feminine hygiene product usage has been stagnant there in recent years.
“In Europe, growth has been caused by the increased amounts of nonwovens used per diaper—not by an actual rise in the number of diapers being produced,” explained managing director Knud Waede Hansen. “In Southeast Asia, there is a lot of room for growth in penetration.”
Fibertex has been able to achieve solid growth in the hygiene segment, where it mainly supplies spunmelt topsheets for baby diapers and feminine hygiene products, because of its ability to offer advantages in its products. In 1998, when it first entered the spunmelt market, Fibertex was the only European-based manufacturer with its type of machine configuration, allowing it to exclusively make lightweight products coveted by the hygiene market.
In more recent years, Fibertex has developed an extremely soft product line of spunmelt products that are ideal for the hygiene segments. Additionally, stretchable nonwovens technology, both in spunmelt and needlepunch, has provided advantages in hygiene as well as on the industrial portion of the business.
Speaking of the industrial side of Fibertex’s business, the company continues to defend its status as one of Europe’s most important needlepunch producers. After working on ramping up its spunmelt and hygiene business during the last five years, the company has now returned its focus to the needlepunch arena. The fruits of this were born in mid-August when a new needlepunch line was brought onstream in Aalborg. The new line, representing a DKK60 million investment, not only adds capacity but also improves the quality of its product offerings.
“We still have a strong position in needlepunch, particularly in the European furniture and bedding markets,” Mr. Hansen explained. “It’s important to have several markets to rely on so if one loses its stability, another can make up for it.”
Other markets for Fibertex’s needlepunch output are carpet backings, automotives, building and construction and horticulture.
With the Malaysian facility and the new needlepunch line just coming onstream, expansion plans are currently not a big push. Still, executives realize the importance of moving with the market for future success. For instance, the possibility of diversifying into a new technology, similar to how Fibertex approached spunmelt in the late 1990s, has not been ruled out. To make this move, Fibertex would have to have a competitive advantage in its product line to make it worthwhile.
For now, however, the Malaysian business and its impact on Fibertex’s Asian business, are taking center stage. “We have a goal to be a global company,” Mr. Hansen explained. “Since we are a small company, we have to achieve this with small, controlled steps.”
Sales: $89 million
Description: Key Personnel
Knud Waede Hansen, managing director; Knud Erik Justesen, deputy managing director; Jesper Bech Masen, general manager, needlepunch division; Mikael Staal Axelsen, general manager, personal care division; Etienne Ficht, business development manager
Plants
Two in Aalborg; one in Malaysia
ISO Status
ISO 9001 certified, 1991; DES ISO 14001 environmental certification, 2001
Processes
Drylaid, needlepunched, spunbond/meltblown
Brand Names
Fibertex, Matchback, Comfortback, Flexback, Two-in-One, Formtex, Superflor, Alupor
Major Markets
Industrial textiles—primary and secondary carpet backings, automotive, furniture and bedding; technical textiles—building and construction, horticulture; hygiene; protective clothing; packaging.
The ability to offer products with clear advantages of the competition has been the backbone of success for Fibertex, Aalborg Ost, Denmark. Not only has the company been able to build a successful spunmelt business during the past five years, it has also been able to continue its growth levels despite economic and pricing pressures in the industry.
In 2002, sales rose 7% to $89 million million while before-tax profit rose 11%. This growth has continued into 2003 and executives expect this to be a better year than last year.
Fibertex first entered the spunmelt market in 1998 when it decided to diversify from its core business of needlepunched nonwovens. Two years later, this side of the business received a boost when a second spunmelt line was added in Aalborg. In 2002, spunbond growth led to the division’s sales equaling needlepunch sales. In 2003, the size of the spunbond business is expected to dominate Fibertex’s overall sales at its Malaysian operation, featuring a multibeam spunmelt line, which will come onstream during the remainder of this year.
Expected to add $25 million per year to Fibertex’s annual sales, the Malaysian plant was announced in April 2002 and was completed ahead of schedule in June 2003. Output from the facility—Fibertex’s first outside of Denmark—will boost Asian sales, now representing 10% of overall business, while supplementing shipments to existing European and American customers.
The three southeast Asian countries most ripe for growth in Fibertex executives’ opinion are Malaysia, Japan and Thailand. The use of hygiene products in these three countries will continue to rise, quite a change from the mature markets of Europe, which represent 80% of current sales. Growth of diaper and feminine hygiene product usage has been stagnant there in recent years.
“In Europe, growth has been caused by the increased amounts of nonwovens used per diaper—not by an actual rise in the number of diapers being produced,” explained managing director Knud Waede Hansen. “In Southeast Asia, there is a lot of room for growth in penetration.”
Fibertex has been able to achieve solid growth in the hygiene segment, where it mainly supplies spunmelt topsheets for baby diapers and feminine hygiene products, because of its ability to offer advantages in its products. In 1998, when it first entered the spunmelt market, Fibertex was the only European-based manufacturer with its type of machine configuration, allowing it to exclusively make lightweight products coveted by the hygiene market.
In more recent years, Fibertex has developed an extremely soft product line of spunmelt products that are ideal for the hygiene segments. Additionally, stretchable nonwovens technology, both in spunmelt and needlepunch, has provided advantages in hygiene as well as on the industrial portion of the business.
Speaking of the industrial side of Fibertex’s business, the company continues to defend its status as one of Europe’s most important needlepunch producers. After working on ramping up its spunmelt and hygiene business during the last five years, the company has now returned its focus to the needlepunch arena. The fruits of this were born in mid-August when a new needlepunch line was brought onstream in Aalborg. The new line, representing a DKK60 million investment, not only adds capacity but also improves the quality of its product offerings.
“We still have a strong position in needlepunch, particularly in the European furniture and bedding markets,” Mr. Hansen explained. “It’s important to have several markets to rely on so if one loses its stability, another can make up for it.”
Other markets for Fibertex’s needlepunch output are carpet backings, automotives, building and construction and horticulture.
With the Malaysian facility and the new needlepunch line just coming onstream, expansion plans are currently not a big push. Still, executives realize the importance of moving with the market for future success. For instance, the possibility of diversifying into a new technology, similar to how Fibertex approached spunmelt in the late 1990s, has not been ruled out. To make this move, Fibertex would have to have a competitive advantage in its product line to make it worthwhile.
For now, however, the Malaysian business and its impact on Fibertex’s Asian business, are taking center stage. “We have a goal to be a global company,” Mr. Hansen explained. “Since we are a small company, we have to achieve this with small, controlled steps.”
Location: Aalborg, Denmark
Sales: $107 MILLION
Description: Key Personnel
Knud Waede Hansen, managing director; Knud Erik Justesen, deputy managing director; Jorgen Bech Masen, general manager, needlepunch division; Mikael Staal Axelsen, general manager, personal care division; Etienne Ficht, business development manager
Plants
Two in Aalborg; one in Malaysia, two in Czech Republic
ISO Status
ISO 9001 certified, 1991; DES ISO 14001 environmental certification, 2001
Processes
Drylaid, needlepunched, spunbond/meltblown, thermal bond
Brand Names
Fibertex, Matchback, Comfortback, Flexback, Two-in-One, formtex, Superflor, Alupor
Major Markets
Industrial textiles—primary and secondary carpet backings, automotive, furniture and bedding; technical textiles—building and construction, horticulture; hygiene; protective clothing; packaging.
An ambitious global expansion strategy is clearly evident through the recent activities of Aalborg, Denmark-based Fibertex A/S. Just one year after building a spunmelt facility in Nilai, Malaysia, the company has already announced plans to add a second line to this operation. And, the acquisition of a Czech roll goods producer will boost Fibertex’s technical business, particularly in Central Europe.
“Our top priority is to become more global for a number of reasons,” said Knud Waede Hansen, managing director. “It boosts our credibility with large customers and brings us closer to markets we want to enter.”
Mr. Hansen is cognizant of the importance of prudence when expanding.
“You need to have a controlled expansion,” he explained. “You don’t want to fall into a trap of expanding too quickly.”
Currently, about 80% of Fibertex’s $130 million annual sales are generated within Europe, with the remaining split between North America and the Far East. This breakdown is expected to change as the company’s Malaysian operation—which represented only $3 million of total sales last year—contributes more. The successful startup of this line has already been proven through Fibertex’s decision, announced in April, to add a second line on a sharp increase in demand for nonwovens from the personal care segment. Representing a E36 million investment, the second line will reportedly have a 25% higher output than the existing line and be the first-of-its-kind operation in Southeast Asia when it comes onstream in mid-2005.
Adding a second line will benefit the Asian business in a number of ways “For an optimal operation, it’s better to have two lines for critical mass,” Mr. Hansen said. “This makes your operation more efficient. If you have a minor breakdown, it doesn’t throw everything off.”
The addition of the Malaysian operations has made personal care the larger of Fibertex’s two divisions, representing $70 million in annual sales. This segment, which Fibertex first entered in 1997, has been successful thanks to a strong commitment to producing soft, lightweight products for the market.
Meanwhile, Fibertex’s technical division is poised to benefit from the recent acquisition of Vigona, a Svitavy, Czech Republic-based manufacturer of needlepunched and thermal bonded nonwovens. This acquisition not only increases Fibertex’s presence in Eastern Europe, where manufacturing costs are considerably lower, it also provides access to markets such as specialty automotives, a booming business in this region.
With current sales of about DKK60 million, Vigona currently operates three facilities in the Czech Republic and employs 220 people. After spending DKK35 million for the company, Fibertex expects to invest as much as DKK200 million in improving the two Vigona sites located in Svitavy. While plans for the third site, located in Opatov, are unclear, executives said it could likely be consolidated into the two larger sites and closed.
This investment in the technical side of the business parallels recent investments in the personal care segment. While much attention has been paid to spunmelt during the past six years, executives are keen to express their continued commitment to technical applications. In August 2003, the company installed a new needlepunch line in Aalborg, which not only added capacity but also improved the quality of product offerings. This investment was followed by the construction of a large storage facility to improve logistics. Beyond automotives, key markets for the technical division include furniture and bedding and construction.
Having interests in both personal care and technical markets allows Fibertex enjoy the benefits of two worlds. In hygiene, the focus tends to be on a few big customers who are highly price conscious; in technical, customers tend to be more diversified with many different customers and applications as well as the ability to offer value-added properties. “It’s important to focus on developing new products and new niche markets,” Mr. Hansen said. “To do this, though, you need a certain capacity, so you can be taken seriously on the market.”
Sales: $107 MILLION
Description: Key Personnel
Knud Waede Hansen, managing director; Knud Erik Justesen, deputy managing director; Jorgen Bech Masen, general manager, needlepunch division; Mikael Staal Axelsen, general manager, personal care division; Etienne Ficht, business development manager
Plants
Two in Aalborg; one in Malaysia, two in Czech Republic
ISO Status
ISO 9001 certified, 1991; DES ISO 14001 environmental certification, 2001
Processes
Drylaid, needlepunched, spunbond/meltblown, thermal bond
Brand Names
Fibertex, Matchback, Comfortback, Flexback, Two-in-One, formtex, Superflor, Alupor
Major Markets
Industrial textiles—primary and secondary carpet backings, automotive, furniture and bedding; technical textiles—building and construction, horticulture; hygiene; protective clothing; packaging.
An ambitious global expansion strategy is clearly evident through the recent activities of Aalborg, Denmark-based Fibertex A/S. Just one year after building a spunmelt facility in Nilai, Malaysia, the company has already announced plans to add a second line to this operation. And, the acquisition of a Czech roll goods producer will boost Fibertex’s technical business, particularly in Central Europe.
“Our top priority is to become more global for a number of reasons,” said Knud Waede Hansen, managing director. “It boosts our credibility with large customers and brings us closer to markets we want to enter.”
Mr. Hansen is cognizant of the importance of prudence when expanding.
“You need to have a controlled expansion,” he explained. “You don’t want to fall into a trap of expanding too quickly.”
Currently, about 80% of Fibertex’s $130 million annual sales are generated within Europe, with the remaining split between North America and the Far East. This breakdown is expected to change as the company’s Malaysian operation—which represented only $3 million of total sales last year—contributes more. The successful startup of this line has already been proven through Fibertex’s decision, announced in April, to add a second line on a sharp increase in demand for nonwovens from the personal care segment. Representing a E36 million investment, the second line will reportedly have a 25% higher output than the existing line and be the first-of-its-kind operation in Southeast Asia when it comes onstream in mid-2005.
Adding a second line will benefit the Asian business in a number of ways “For an optimal operation, it’s better to have two lines for critical mass,” Mr. Hansen said. “This makes your operation more efficient. If you have a minor breakdown, it doesn’t throw everything off.”
The addition of the Malaysian operations has made personal care the larger of Fibertex’s two divisions, representing $70 million in annual sales. This segment, which Fibertex first entered in 1997, has been successful thanks to a strong commitment to producing soft, lightweight products for the market.
Meanwhile, Fibertex’s technical division is poised to benefit from the recent acquisition of Vigona, a Svitavy, Czech Republic-based manufacturer of needlepunched and thermal bonded nonwovens. This acquisition not only increases Fibertex’s presence in Eastern Europe, where manufacturing costs are considerably lower, it also provides access to markets such as specialty automotives, a booming business in this region.
With current sales of about DKK60 million, Vigona currently operates three facilities in the Czech Republic and employs 220 people. After spending DKK35 million for the company, Fibertex expects to invest as much as DKK200 million in improving the two Vigona sites located in Svitavy. While plans for the third site, located in Opatov, are unclear, executives said it could likely be consolidated into the two larger sites and closed.
This investment in the technical side of the business parallels recent investments in the personal care segment. While much attention has been paid to spunmelt during the past six years, executives are keen to express their continued commitment to technical applications. In August 2003, the company installed a new needlepunch line in Aalborg, which not only added capacity but also improved the quality of product offerings. This investment was followed by the construction of a large storage facility to improve logistics. Beyond automotives, key markets for the technical division include furniture and bedding and construction.
Having interests in both personal care and technical markets allows Fibertex enjoy the benefits of two worlds. In hygiene, the focus tends to be on a few big customers who are highly price conscious; in technical, customers tend to be more diversified with many different customers and applications as well as the ability to offer value-added properties. “It’s important to focus on developing new products and new niche markets,” Mr. Hansen said. “To do this, though, you need a certain capacity, so you can be taken seriously on the market.”
Location: Aalborg, Denmark
Sales: $160 million
Description: Key Personnel
Knud Waede Hansen, managing director; Knud Erik Justesen, deputy managing director; Jorgen Bech Masen, general manager, needlepunch division; Mikael Staal Axelsen, general manager, personal care division; Etienne Ficht, business development manager
Plants
Two in Aalborg; one in Malaysia, two in Czech Republic
ISO Status
ISO 9001 certified, 1991; DES ISO 14001 environmental certification, 2001
Processes
Drylaid, needlepunched, spunbond/meltblown, thermal bond
Brand Names
Fibertex, Matchback, Comfortback, Flexback, Two-in-One, formtex, Superflor, Alupor
Major Markets
Industrial textiles-primary and secondary carpet backings, automotive, furniture and bedding; technical textiles-building and construction, horticulture; hygiene; protective clothing; packaging
Benefiting from the full effects of its Malaysian line, completed in late 2003, Fibertex’s sales reached $160 million in 2004 and executives are bullish they could surpass $200 million in 2005 as a second Malaysian line ramps up and the effects of a Central European acquisition are felt.
Currently, Fibertex’s business falls under two divisions—personal care and technical which comprise 60% and 40% of the business, respectively. In 2004, personal care sales increased 32% to reach DKK546 million, thanks largely to the completion of a new spunbond line in Malaysia. Technical division sales increased 15% to DKK418 including the company’s acquisition of Czech Republic-based Vigona. Organic growth was reported at approximately 5%.
“It’s a strength for us to have two strong legs,” said managing director Knud Waede Hansen. “It’s always nice to have more than one market to observe.”
After investing significantly in personal care since entering the segment in 1998, in July 2004, Fibertex shifted its attention toward technical by acquiring Vigona, a Czech Republic-based manufacturer of needlepunched and thermal bonded nonwovens. The acquisition not only strengthened Fibertex’s technical business, it has also opened a door to the important growth markets of Central and Eastern Europe for the company.
And, Fibertex is already enhancing this business, which achieved sales of $60 million per year prior to the acquisition. In June 2005, a large-scale NSC needlepunch line measuring six meters in width began operation and plans are underway to erect some specialty lines, including a laminator, to work in tandem with the loom. The new line is located in a new plant near existing facilities in Svitavy, Czech Republic. Also included in the Vigona acquisition was a site in Opatov, which will likely be closed, according to Mr. Hansen.
The investment in the Vigona site is part of Fibertex’s strategy to increase its foothold in some important industrial markets, most notably the automotives segment, which has seen significant activity in Central Europe. In announcing the DKK35 million purchase of the needlepunch and thermalbond nonwovens producer, Fibertex officials pledged to invest as much has DKK200 million into improving the business.
In addition to automotives, other key markets receiving a boost from the Vigona business are filtration, bedding and construction. “Western Europe is an expensive production platform,” Mr. Hansen said. “Eastern Europe is much more economical so it is a good place to establish an operation.”
Investment in technical operations does not mean that Fibertex has cooled its jets in the hygiene arena. Plans are already underway to install a large-scale Reifenhaueser spunbond line—Fibertex’s fifth—in Aalborg, where Fibertex already operates two such lines.
Also contributing nicely to Fibertex’s hygiene business is its Malaysian operation, established in spring 2002. While this site’s one operating spunbond line—a second one is set to come onstream this summer—contributed only $3 million to overall sales in 2003, the line’s contribution increased significantly last year. The second spunmelt line will boast a 25% higher output than the first line.
Whether or not expansion will continue into new areas, such as North or South America, is not clear. “We are supplying North America from Denmark and Malaysia, and we have considered a line there but have not yet made a decision,” said Mr. Hansen. “We want to be a global company but we have to be careful of our manpower, making sure there are enough competitive people to support the operations and to make sure there is a market for our output. We can’t just go into a market and be like all of the others. It is not interesting.”
Beyond geographical expansion, Fibertex will achieve growth through a balance of high volume commodity markets and value-added specialty areas. In hygiene, Fibertex currently markets three major products lines—Comfort (high liquid barrier and low cost), Elite (high strength and softness) and Dual (supersoft)—focusing on applications in baby diapers, feminine hygiene and adult incontinence products. In 2004, the division continued to work on a new product line, Shape, an elasticized material based on 100% nonwoven material and directed at personal care applications. Meanwhile, on the industrial side, research and development efforts have led to products for the filtration and automotive industry, new low-weight geotextile products and laminated and multilayered products for a variety of technical and industrial end uses.
Looking ahead, raw material prices, a key concern in 2004, are expected to keep profits flat during 2005. However, continued focus on innovation in products and services will considerably increase performance in both sales and earnings in 2006.
“You have to take advantage of what is going on in the market,” Mr. Hansen said. “Timing is extremely important, and we try our best to assess this.”
Sales: $160 million
Description: Key Personnel
Knud Waede Hansen, managing director; Knud Erik Justesen, deputy managing director; Jorgen Bech Masen, general manager, needlepunch division; Mikael Staal Axelsen, general manager, personal care division; Etienne Ficht, business development manager
Plants
Two in Aalborg; one in Malaysia, two in Czech Republic
ISO Status
ISO 9001 certified, 1991; DES ISO 14001 environmental certification, 2001
Processes
Drylaid, needlepunched, spunbond/meltblown, thermal bond
Brand Names
Fibertex, Matchback, Comfortback, Flexback, Two-in-One, formtex, Superflor, Alupor
Major Markets
Industrial textiles-primary and secondary carpet backings, automotive, furniture and bedding; technical textiles-building and construction, horticulture; hygiene; protective clothing; packaging
Benefiting from the full effects of its Malaysian line, completed in late 2003, Fibertex’s sales reached $160 million in 2004 and executives are bullish they could surpass $200 million in 2005 as a second Malaysian line ramps up and the effects of a Central European acquisition are felt.
Currently, Fibertex’s business falls under two divisions—personal care and technical which comprise 60% and 40% of the business, respectively. In 2004, personal care sales increased 32% to reach DKK546 million, thanks largely to the completion of a new spunbond line in Malaysia. Technical division sales increased 15% to DKK418 including the company’s acquisition of Czech Republic-based Vigona. Organic growth was reported at approximately 5%.
“It’s a strength for us to have two strong legs,” said managing director Knud Waede Hansen. “It’s always nice to have more than one market to observe.”
After investing significantly in personal care since entering the segment in 1998, in July 2004, Fibertex shifted its attention toward technical by acquiring Vigona, a Czech Republic-based manufacturer of needlepunched and thermal bonded nonwovens. The acquisition not only strengthened Fibertex’s technical business, it has also opened a door to the important growth markets of Central and Eastern Europe for the company.
And, Fibertex is already enhancing this business, which achieved sales of $60 million per year prior to the acquisition. In June 2005, a large-scale NSC needlepunch line measuring six meters in width began operation and plans are underway to erect some specialty lines, including a laminator, to work in tandem with the loom. The new line is located in a new plant near existing facilities in Svitavy, Czech Republic. Also included in the Vigona acquisition was a site in Opatov, which will likely be closed, according to Mr. Hansen.
The investment in the Vigona site is part of Fibertex’s strategy to increase its foothold in some important industrial markets, most notably the automotives segment, which has seen significant activity in Central Europe. In announcing the DKK35 million purchase of the needlepunch and thermalbond nonwovens producer, Fibertex officials pledged to invest as much has DKK200 million into improving the business.
In addition to automotives, other key markets receiving a boost from the Vigona business are filtration, bedding and construction. “Western Europe is an expensive production platform,” Mr. Hansen said. “Eastern Europe is much more economical so it is a good place to establish an operation.”
Investment in technical operations does not mean that Fibertex has cooled its jets in the hygiene arena. Plans are already underway to install a large-scale Reifenhaueser spunbond line—Fibertex’s fifth—in Aalborg, where Fibertex already operates two such lines.
Also contributing nicely to Fibertex’s hygiene business is its Malaysian operation, established in spring 2002. While this site’s one operating spunbond line—a second one is set to come onstream this summer—contributed only $3 million to overall sales in 2003, the line’s contribution increased significantly last year. The second spunmelt line will boast a 25% higher output than the first line.
Whether or not expansion will continue into new areas, such as North or South America, is not clear. “We are supplying North America from Denmark and Malaysia, and we have considered a line there but have not yet made a decision,” said Mr. Hansen. “We want to be a global company but we have to be careful of our manpower, making sure there are enough competitive people to support the operations and to make sure there is a market for our output. We can’t just go into a market and be like all of the others. It is not interesting.”
Beyond geographical expansion, Fibertex will achieve growth through a balance of high volume commodity markets and value-added specialty areas. In hygiene, Fibertex currently markets three major products lines—Comfort (high liquid barrier and low cost), Elite (high strength and softness) and Dual (supersoft)—focusing on applications in baby diapers, feminine hygiene and adult incontinence products. In 2004, the division continued to work on a new product line, Shape, an elasticized material based on 100% nonwoven material and directed at personal care applications. Meanwhile, on the industrial side, research and development efforts have led to products for the filtration and automotive industry, new low-weight geotextile products and laminated and multilayered products for a variety of technical and industrial end uses.
Looking ahead, raw material prices, a key concern in 2004, are expected to keep profits flat during 2005. However, continued focus on innovation in products and services will considerably increase performance in both sales and earnings in 2006.
“You have to take advantage of what is going on in the market,” Mr. Hansen said. “Timing is extremely important, and we try our best to assess this.”
Location: Aalborg, Denmark
Sales: $190 million
Description: Key Personnel
Knud Waede Hansen, managing director; Mikael Staal Axelsen, general manager, Personal Care Division; Jorgen Bech Madsen, general manager, Technical Division; Etienne Ficht, business development Director, Kenneth Mynster Dolmer, purchasing director, Ole Houmann, Finance Director
Plants
Two in Aalborg; one in Malaysia, two in the Czech Republic
ISO Status
DS/EN ISO 9001 Quality management 1991:2000; DS/ISO 14001 Environmental management 2001; DS 2403 Energy management
Processes
Drylaid, carded, needlepunched, thermalbonded, spunbond/ meltblown
Brand Names
Fibertex, Flexback, Formtex, Compoflex, Multigeo, Superflor, Weedseal, Fiberforce, Fibergreen, Fibertex patio, Fibertex universal, Fiberacoustic, Two-in-One, Comfortback, Matchback, Woodback, Q-match, Making the perfect match
Major Markets
Industrial textiles-primary and secondary carpet backings, automotive, furniture and bedding, filtration; technical textiles-building and construction, composites, do-it-yourself, horticulture; hygiene; protective clothing; packaging
Sales increased for Danish nonwovens producer Fibertex thanks to the increased ramp up of its second Malaysian spunmelt line as well as continued integration of its acquired Czech Republic business. The company’s sales reached $190 million in 2005 compared to $160 million in 2004. Despite this remarkable growth, Fibertex, like many nonwovens producers, has been challenged by the increased price of polypropylene, the core raw material of its spunmelt operation. “We have tried to optimize our operations but our price increases were so dramatic, we had to raise prices,” said managing director Knud Waede Hansen. “This is always a challenge for nonwovens producers. We are a smaller player stuck between two larger players—the raw material producers we are buying from and the hygiene companies we are selling to.”
Fibertex’s growth in the hygiene segment has been impressive since the company entered this realm in 1998 Last year alone, sales in the personal care division rose 23% to DKK669 million and this growth is expected to continue.
Currently, Fibertex runs two spunmelt lines at its headquarters in Aalborg, Denmark as well as two lines in its Malaysian facility. And, a third line—a Reicofil 4—is currently under construction in Aalborg. Set to come onstream this fall, this line, like its four sister lines, will mainly produce lightweight products for the hygiene market. “There is still demand for spunmelt nonwovens in Europe,” Mr. Hansen explained. “You have to have the latest technology and to be competitive we had to add another line.”
Meanwhile, Fibertex’s technical division sales increased 17% to DKK491 million, thanks to the establishment of a state-of-the-art facility in the Czech Republic, which Fibertex acquired from Vigona in 2004 and where it has since added a large-scale NSC needleloom measuring six meters in width. This operation, which also produces thermal bonded nonwovens, is allowing Fibertex to target important industrial markets, most notably the automotives segment, which has seen significant activity in Central Europe. “Automotives was traditionally the biggest market for Vigona because many of the tier one and two automotive suppliers are located in that region,” Mr. Hansen explained. “Because they are located there, it is better to serve them from that area.”
According to Mr. Hansen, investment in this area will continue. Upon purchasing the site, Fibertex officials indicated investment in the region could reach as high as DKK200 million.
Beyond automotives, Fibertex’s technical business includes construction and geotextiles, furniture, carpeting and filtration. In fall 2005, Fibertex developed a new geotextile product program with improved properties and all of the necessary market and quality certifications. Other new product initiatives include a line of lightweight nonwovens for automotives, new products for the filtration market and laminated and multilayer products for various industrial and technical markets.
“Technical nonwovens are very different from hygiene,” Mr. Hansen said. “But, both sides are doing very well. It is good to have two legs to stand on.”
After several years of aggressive investment—two lines and a new facility in Malaysia, the acquisition of and improvements to a Czech Republic site and most recently a new line in Denmark—Fibertex is now at a crossroads as to where to focus next. “We are considering what our next move should be,” Mr. Hansen said. “It could be a new line but there are other options.”
For instance, Fibertex has no operation in America or in China, large markets for all of its businesses. “We want to be global but we cannot enter a market just for the sake of entering it,” he continued. “There has to be a plan. For instance, China should not be ignored but the question is how do you attack it?”
Sales: $190 million
Description: Key Personnel
Knud Waede Hansen, managing director; Mikael Staal Axelsen, general manager, Personal Care Division; Jorgen Bech Madsen, general manager, Technical Division; Etienne Ficht, business development Director, Kenneth Mynster Dolmer, purchasing director, Ole Houmann, Finance Director
Plants
Two in Aalborg; one in Malaysia, two in the Czech Republic
ISO Status
DS/EN ISO 9001 Quality management 1991:2000; DS/ISO 14001 Environmental management 2001; DS 2403 Energy management
Processes
Drylaid, carded, needlepunched, thermalbonded, spunbond/ meltblown
Brand Names
Fibertex, Flexback, Formtex, Compoflex, Multigeo, Superflor, Weedseal, Fiberforce, Fibergreen, Fibertex patio, Fibertex universal, Fiberacoustic, Two-in-One, Comfortback, Matchback, Woodback, Q-match, Making the perfect match
Major Markets
Industrial textiles-primary and secondary carpet backings, automotive, furniture and bedding, filtration; technical textiles-building and construction, composites, do-it-yourself, horticulture; hygiene; protective clothing; packaging
Sales increased for Danish nonwovens producer Fibertex thanks to the increased ramp up of its second Malaysian spunmelt line as well as continued integration of its acquired Czech Republic business. The company’s sales reached $190 million in 2005 compared to $160 million in 2004. Despite this remarkable growth, Fibertex, like many nonwovens producers, has been challenged by the increased price of polypropylene, the core raw material of its spunmelt operation. “We have tried to optimize our operations but our price increases were so dramatic, we had to raise prices,” said managing director Knud Waede Hansen. “This is always a challenge for nonwovens producers. We are a smaller player stuck between two larger players—the raw material producers we are buying from and the hygiene companies we are selling to.”
Fibertex’s growth in the hygiene segment has been impressive since the company entered this realm in 1998 Last year alone, sales in the personal care division rose 23% to DKK669 million and this growth is expected to continue.
Currently, Fibertex runs two spunmelt lines at its headquarters in Aalborg, Denmark as well as two lines in its Malaysian facility. And, a third line—a Reicofil 4—is currently under construction in Aalborg. Set to come onstream this fall, this line, like its four sister lines, will mainly produce lightweight products for the hygiene market. “There is still demand for spunmelt nonwovens in Europe,” Mr. Hansen explained. “You have to have the latest technology and to be competitive we had to add another line.”
Meanwhile, Fibertex’s technical division sales increased 17% to DKK491 million, thanks to the establishment of a state-of-the-art facility in the Czech Republic, which Fibertex acquired from Vigona in 2004 and where it has since added a large-scale NSC needleloom measuring six meters in width. This operation, which also produces thermal bonded nonwovens, is allowing Fibertex to target important industrial markets, most notably the automotives segment, which has seen significant activity in Central Europe. “Automotives was traditionally the biggest market for Vigona because many of the tier one and two automotive suppliers are located in that region,” Mr. Hansen explained. “Because they are located there, it is better to serve them from that area.”
According to Mr. Hansen, investment in this area will continue. Upon purchasing the site, Fibertex officials indicated investment in the region could reach as high as DKK200 million.
Beyond automotives, Fibertex’s technical business includes construction and geotextiles, furniture, carpeting and filtration. In fall 2005, Fibertex developed a new geotextile product program with improved properties and all of the necessary market and quality certifications. Other new product initiatives include a line of lightweight nonwovens for automotives, new products for the filtration market and laminated and multilayer products for various industrial and technical markets.
“Technical nonwovens are very different from hygiene,” Mr. Hansen said. “But, both sides are doing very well. It is good to have two legs to stand on.”
After several years of aggressive investment—two lines and a new facility in Malaysia, the acquisition of and improvements to a Czech Republic site and most recently a new line in Denmark—Fibertex is now at a crossroads as to where to focus next. “We are considering what our next move should be,” Mr. Hansen said. “It could be a new line but there are other options.”
For instance, Fibertex has no operation in America or in China, large markets for all of its businesses. “We want to be global but we cannot enter a market just for the sake of entering it,” he continued. “There has to be a plan. For instance, China should not be ignored but the question is how do you attack it?”
Location: Aalborg, Denmark
Sales: $222 million
Description: Key Personnel
Michael Meulengracht, managing director; Mikael Staal Axelsen, general manager, Personal Care Division; Jorgen Bech Madsen, general manager, Technical Division; Kenneth Mynster Dolmer, purchasing director; Ole Houmann, Finance Director
Plants
Two in Aalborg; one in Malaysia, two in the Czech Republic
ISO Status
DS/EN ISO 9001 Quality management 1991:2000; DS/ISO 14001 Environmental management 2001; DS 2403 Energy management
Processes
Drylaid, carded, needlepunched, thermalbonded, spunbond/ meltblown
Brand Names
Fibertex, Flexback, Formtex, Compoflex, Multigeo, Superflor, Weedseal, Fiberforce, Fibergreen, Fibertex patio, Fibertex universal, Fiberacoustic, Two-in-One, Comfortback, Matchback, Woodback, Q-match, Making the perfect match
Major Markets
Industrial textiles-primary and secondary carpet backings, automotive, furniture and bedding, filtration; technical textiles—building and construction, composites, do-it-yourself, horticulture; hygiene; protective clothing; packaging
Describing the year as challenging was Danish nonwovens producer Fibertex, who reported 16% sales growth but admitted that earnings did not follow this growth trend, due largely to external problems, namely raw material increases. According to the company, sales were $222 million compared to $195 million in 2005 while earnings declined to $5.5 million.
In addition to raw material price increases, Fibertex’s earnings were negatively impacted by complications associated with bringing a six-meter, state-of-the-art NSC needleloom onstream at its Czech Republic facility. While this problem has been fixed, it did lead to a delay in transferring two older lines from the Czech site, which Fibertex acquired from Vigona in 2004.
“We did face problems in our Czech operation with manufacturing efficiency on an existing line. That has been fixed,” said Michael Meulengracht, who replaced retired Knud Waede Hansen as Fibertex managing director in January.
The Czech operation, acquired from Vigona in 2004, currently includes thermal bonding, drylaid and needlepunching machines. Fibertex is reconfiguring an older drylaid line at the site to offer a new technology and will then decide if it’s wise to add news lines there as well.
Fibertex purchased the Czech operation in 2004, partly to better target Central and Eastern Europe and partly to increase its role in technical markets. Currently, a big portion of the output in the Czech Republic serves the automotives market, where there is always pressure to keep costs down. However, Fibertex is benefiting from the location of this operation as many of the Tier One automotive suppliers have operations in the Eastern Block countries. Other markets being served by Fibertex’s technical division include furniture and bedding, filtration and geotextiles.
In addition to the Vigona site, Fibertex runs a needlepunch operation from its Aalborg, Denmark facility to target technical markets. As a whole, Fibertex’s technical division increased its sales 9% in 2006 to reach $90 million.
Meanwhile, Fibertex’s hygiene business—which grew sales 20% to $135.5 million last year—continues to benefit from new investment, the latest of which, a new Reifenhauser line, began operating at Fibertex’s Aalborg headquarters in January. The new line, the facility’s third spunmelt machine, increased capacity there by 50% and is already contributing to the bottom line, according to Mr. Meulengracht.
“Hygiene still performs well for us,” he said. “It’s all about providing a solid package there, running at an acceptable capacity utilization.”
In addition to three lines in Aalborg, Fibertex operates two Reifenhauser spunmelt lines serving the hygiene market at its Malaysian facility near Kaula Lumpur. These lines serve the Asia-Pacific regions as well as Europe. “Asia-Pacific is growing significantly because the developing countries are full of people who are improving their lifestyles,” Mr. Meulengracht said. “There are 100 million people in China who have enough money for hygiene products.”
Also benefiting Fibertex’s Asian-Pacific business is lack of local competition. Products being made by Asian companies continue to be sub-quality compared to Western competitors.
During the past decade, much of Fibertex’s growth has come from new investments, including the construction of lines as well as investment of new businesses. Currently, no new capacity is planned but executives insist the company is still in growth mode. “There are a lot of ways to achieve growth,” said Mr. Meulengracht. “It can be joint ventures, capacity expansions, acquisitions, etc.”
Sales: $222 million
Description: Key Personnel
Michael Meulengracht, managing director; Mikael Staal Axelsen, general manager, Personal Care Division; Jorgen Bech Madsen, general manager, Technical Division; Kenneth Mynster Dolmer, purchasing director; Ole Houmann, Finance Director
Plants
Two in Aalborg; one in Malaysia, two in the Czech Republic
ISO Status
DS/EN ISO 9001 Quality management 1991:2000; DS/ISO 14001 Environmental management 2001; DS 2403 Energy management
Processes
Drylaid, carded, needlepunched, thermalbonded, spunbond/ meltblown
Brand Names
Fibertex, Flexback, Formtex, Compoflex, Multigeo, Superflor, Weedseal, Fiberforce, Fibergreen, Fibertex patio, Fibertex universal, Fiberacoustic, Two-in-One, Comfortback, Matchback, Woodback, Q-match, Making the perfect match
Major Markets
Industrial textiles-primary and secondary carpet backings, automotive, furniture and bedding, filtration; technical textiles—building and construction, composites, do-it-yourself, horticulture; hygiene; protective clothing; packaging
Describing the year as challenging was Danish nonwovens producer Fibertex, who reported 16% sales growth but admitted that earnings did not follow this growth trend, due largely to external problems, namely raw material increases. According to the company, sales were $222 million compared to $195 million in 2005 while earnings declined to $5.5 million.
In addition to raw material price increases, Fibertex’s earnings were negatively impacted by complications associated with bringing a six-meter, state-of-the-art NSC needleloom onstream at its Czech Republic facility. While this problem has been fixed, it did lead to a delay in transferring two older lines from the Czech site, which Fibertex acquired from Vigona in 2004.
“We did face problems in our Czech operation with manufacturing efficiency on an existing line. That has been fixed,” said Michael Meulengracht, who replaced retired Knud Waede Hansen as Fibertex managing director in January.
The Czech operation, acquired from Vigona in 2004, currently includes thermal bonding, drylaid and needlepunching machines. Fibertex is reconfiguring an older drylaid line at the site to offer a new technology and will then decide if it’s wise to add news lines there as well.
Fibertex purchased the Czech operation in 2004, partly to better target Central and Eastern Europe and partly to increase its role in technical markets. Currently, a big portion of the output in the Czech Republic serves the automotives market, where there is always pressure to keep costs down. However, Fibertex is benefiting from the location of this operation as many of the Tier One automotive suppliers have operations in the Eastern Block countries. Other markets being served by Fibertex’s technical division include furniture and bedding, filtration and geotextiles.
In addition to the Vigona site, Fibertex runs a needlepunch operation from its Aalborg, Denmark facility to target technical markets. As a whole, Fibertex’s technical division increased its sales 9% in 2006 to reach $90 million.
Meanwhile, Fibertex’s hygiene business—which grew sales 20% to $135.5 million last year—continues to benefit from new investment, the latest of which, a new Reifenhauser line, began operating at Fibertex’s Aalborg headquarters in January. The new line, the facility’s third spunmelt machine, increased capacity there by 50% and is already contributing to the bottom line, according to Mr. Meulengracht.
“Hygiene still performs well for us,” he said. “It’s all about providing a solid package there, running at an acceptable capacity utilization.”
In addition to three lines in Aalborg, Fibertex operates two Reifenhauser spunmelt lines serving the hygiene market at its Malaysian facility near Kaula Lumpur. These lines serve the Asia-Pacific regions as well as Europe. “Asia-Pacific is growing significantly because the developing countries are full of people who are improving their lifestyles,” Mr. Meulengracht said. “There are 100 million people in China who have enough money for hygiene products.”
Also benefiting Fibertex’s Asian-Pacific business is lack of local competition. Products being made by Asian companies continue to be sub-quality compared to Western competitors.
During the past decade, much of Fibertex’s growth has come from new investments, including the construction of lines as well as investment of new businesses. Currently, no new capacity is planned but executives insist the company is still in growth mode. “There are a lot of ways to achieve growth,” said Mr. Meulengracht. “It can be joint ventures, capacity expansions, acquisitions, etc.”
Location: AALBORG, DENMARK
Sales: $294 million
Description: Key Personnel
Mikael Staal Axelsen, General Manager, Personal Care Division; Jorgen Bech Madsen, General Manager, Technical Division; Ole Houmann, Finance Director; Kenneth Mynster Dolmer, Purchasing Director
Plants
Two in Aalborg; one in Malaysia, three in the Czech Republic
ISO Status
DS/EN ISO 9001 Quality management 1991:2000; DS/ISO 14001 Environmental management 2001; DS 2403 Energy management
Processes
Drylaid, carded, needlepunched, thermalbonded, spunbond/meltblown, technical air-lay
Brand Names
Fibertex, Flexback, Formtex, Compoflex, Multigeo, Superflor, Weedseal, Fiberforce, Fibergreen, Fibertex patio, Fibertex universal, Fiberacoustic, Two-in-One, Comfortback, Matchback, Woodback, Q-Match, Making the perfect match, Comfort, Elite, Dual.
Major Markets
Industrial textiles—primary and secondary carpet backings, automotive, furniture and bedding, filtration; technical textiles—building and construction, composites, do-it-yourself, horticulture; hygiene—applications within baby diapers, feminine hygiene and incontinence.
Sales grew but earnings were under pressure for Fibertex, Aalborg, Denmark. The maker of nonwovens for both personal care and technical applications has responded to increased raw material pressures by streamlining processes to eliminate as many raw material costs as possible. “We have evaluated our business and where there are unacceptable profits we have added price increases,” said Jorgen Bech Madsen, general manager of Fibertex’s Technical Division. “If that didn’t work, we have been willing to lose business if we have had to. And further price increases will be added, if raw material prices continue to increase.”
In addition to raw material prices, Fibertex’s business was negatively impacted by the weak U.S. dollar, which has made doing business in North America prohibitive for Euro-based businesses. While Fibertex still exports to the U.S., only value-added products are targeted there, mainly in the technical business.
Despite these pressures, in 2007, group sales reached DKK 1.6 billion, up from 1.3 billion in 2006. Growth was felt across its two major divisions—Personal Care and Technical—as new capacity ramped up through its entire business.
Fibertex’s personal care division operates out of two facilities—one in Aalborg, Denmark and another near Kuala Lumpur, Malaysia, which contain a total of five production lines all based on spunmelt technology. Currently all of these lines, even the newest, which was completed in early 2007, are operating at full capacity, but executives have no plans to expand this business, given the state of the European hygiene market. “We see exciting growth opportunities in both areas but there is an overcapacity situation in the European hygiene markets,” Mr. Madsen said. “No one is adding capacity.”
The addition of the fifth line as well as improved efficiencies in the older lines helped drive personal care sales up 33% to DKK 1.069 million ($196 million) in 2007 and further increases are expected for 2008 as all lines are now highly efficient and increasing their marketshare. Asia-Pacific sales particularly are growing at a high rate as demand in the region exceeds supply, Mr. Madsen added.
Instead, Fibertex is offering its customers a means by which to diversify. In April, the company announced a joint venture company, called Innowo Print, with technology making it possible to print directly on nonwoven materials for products such as diapers and femcare products.
The new company, located in Harz, Germany is owned by Fibertex and the two businessmen Lars Christiansen and Carsten Pedersen. Commercial production began in June. “It is definitely a part of our strategy to go after value-added nonwovens but also being competitive in large markets,” Mr. Madsen said.
Meanwhile, Fibertex’s technical business comprises about a third of the company’s sales and targets the construction, industrial, automotive and filtration markets, out of Fibertex’s Aalborg headquarters as well as three sites in the Czech Republic, which were acquired from Vigona in 2004 to increase exposure to Central and Eastern European countries and broaden its technical portfolio.
Sales in this division rose 9% to DK 583 million ($107 million) in 2007. Of the three Czech sites, one is outdated and scheduled to close in 2009; the other two have seen a number of improvements by Fibertex during the past four years. The most recent of these is a new air lay line, announced in September 2007, which will manufacture acoustic fabrics targeting the automotive industry. The new line became fully operational in August 2008.
“This technology allows us to reduce weights compared to most acoustic materials,” Mr. Madsen said. “Other benefits include better moldability, reduced raw material usage and increased performance.
The new air lay line in the Czech Republic joins thermal bonding, drylaid and needlepunching machines at the operation. Since acquiring the business, Fibertex has added a large-scale needlepunch line and upgraded an older drylaid line there.
Meanwhile, in Denmark, Fibertex’s Technical division operates a sizable needlepunch operation, which also received a boost last year, when plans for a new line was announced. The new line replaces older, obsolete lines and became fully operational in August 2008.
These measures are part of the division’s “Capturing the Future” plan, which is intended to improve earnings and ensure its sustainable development. Other tenets of this plan include the movement of labor-intensive operations to modern facilities in the Czech Republic, where wages are lower, and the development and sale of high-margin products and the expansion of Fibertex’s position in regional growth markets. The results will be an increase in earnings.
“Our plans are to strengthen the two divisions,” Mr. Madsen said. “We run them separately because the divisions don’t have a lot to do with each other.”
Sales: $294 million
Description: Key Personnel
Mikael Staal Axelsen, General Manager, Personal Care Division; Jorgen Bech Madsen, General Manager, Technical Division; Ole Houmann, Finance Director; Kenneth Mynster Dolmer, Purchasing Director
Plants
Two in Aalborg; one in Malaysia, three in the Czech Republic
ISO Status
DS/EN ISO 9001 Quality management 1991:2000; DS/ISO 14001 Environmental management 2001; DS 2403 Energy management
Processes
Drylaid, carded, needlepunched, thermalbonded, spunbond/meltblown, technical air-lay
Brand Names
Fibertex, Flexback, Formtex, Compoflex, Multigeo, Superflor, Weedseal, Fiberforce, Fibergreen, Fibertex patio, Fibertex universal, Fiberacoustic, Two-in-One, Comfortback, Matchback, Woodback, Q-Match, Making the perfect match, Comfort, Elite, Dual.
Major Markets
Industrial textiles—primary and secondary carpet backings, automotive, furniture and bedding, filtration; technical textiles—building and construction, composites, do-it-yourself, horticulture; hygiene—applications within baby diapers, feminine hygiene and incontinence.
Sales grew but earnings were under pressure for Fibertex, Aalborg, Denmark. The maker of nonwovens for both personal care and technical applications has responded to increased raw material pressures by streamlining processes to eliminate as many raw material costs as possible. “We have evaluated our business and where there are unacceptable profits we have added price increases,” said Jorgen Bech Madsen, general manager of Fibertex’s Technical Division. “If that didn’t work, we have been willing to lose business if we have had to. And further price increases will be added, if raw material prices continue to increase.”
In addition to raw material prices, Fibertex’s business was negatively impacted by the weak U.S. dollar, which has made doing business in North America prohibitive for Euro-based businesses. While Fibertex still exports to the U.S., only value-added products are targeted there, mainly in the technical business.
Despite these pressures, in 2007, group sales reached DKK 1.6 billion, up from 1.3 billion in 2006. Growth was felt across its two major divisions—Personal Care and Technical—as new capacity ramped up through its entire business.
Fibertex’s personal care division operates out of two facilities—one in Aalborg, Denmark and another near Kuala Lumpur, Malaysia, which contain a total of five production lines all based on spunmelt technology. Currently all of these lines, even the newest, which was completed in early 2007, are operating at full capacity, but executives have no plans to expand this business, given the state of the European hygiene market. “We see exciting growth opportunities in both areas but there is an overcapacity situation in the European hygiene markets,” Mr. Madsen said. “No one is adding capacity.”
The addition of the fifth line as well as improved efficiencies in the older lines helped drive personal care sales up 33% to DKK 1.069 million ($196 million) in 2007 and further increases are expected for 2008 as all lines are now highly efficient and increasing their marketshare. Asia-Pacific sales particularly are growing at a high rate as demand in the region exceeds supply, Mr. Madsen added.
Instead, Fibertex is offering its customers a means by which to diversify. In April, the company announced a joint venture company, called Innowo Print, with technology making it possible to print directly on nonwoven materials for products such as diapers and femcare products.
The new company, located in Harz, Germany is owned by Fibertex and the two businessmen Lars Christiansen and Carsten Pedersen. Commercial production began in June. “It is definitely a part of our strategy to go after value-added nonwovens but also being competitive in large markets,” Mr. Madsen said.
Meanwhile, Fibertex’s technical business comprises about a third of the company’s sales and targets the construction, industrial, automotive and filtration markets, out of Fibertex’s Aalborg headquarters as well as three sites in the Czech Republic, which were acquired from Vigona in 2004 to increase exposure to Central and Eastern European countries and broaden its technical portfolio.
Sales in this division rose 9% to DK 583 million ($107 million) in 2007. Of the three Czech sites, one is outdated and scheduled to close in 2009; the other two have seen a number of improvements by Fibertex during the past four years. The most recent of these is a new air lay line, announced in September 2007, which will manufacture acoustic fabrics targeting the automotive industry. The new line became fully operational in August 2008.
“This technology allows us to reduce weights compared to most acoustic materials,” Mr. Madsen said. “Other benefits include better moldability, reduced raw material usage and increased performance.
The new air lay line in the Czech Republic joins thermal bonding, drylaid and needlepunching machines at the operation. Since acquiring the business, Fibertex has added a large-scale needlepunch line and upgraded an older drylaid line there.
Meanwhile, in Denmark, Fibertex’s Technical division operates a sizable needlepunch operation, which also received a boost last year, when plans for a new line was announced. The new line replaces older, obsolete lines and became fully operational in August 2008.
These measures are part of the division’s “Capturing the Future” plan, which is intended to improve earnings and ensure its sustainable development. Other tenets of this plan include the movement of labor-intensive operations to modern facilities in the Czech Republic, where wages are lower, and the development and sale of high-margin products and the expansion of Fibertex’s position in regional growth markets. The results will be an increase in earnings.
“Our plans are to strengthen the two divisions,” Mr. Madsen said. “We run them separately because the divisions don’t have a lot to do with each other.”
Location: AALBORG, DENMARK
Sales: $295 Million
Description: Key Personnel
Mikael Staal Axelsen, CEO, Fibertex Personal Care; Jorgen Bech Madsen, CEO, Fibertex Industrial Nonwovens; Ole Houmann, CFO; Kenneth Mynster Dolmer, purchasing director
Plants
Two in Aalborg; one in Malaysia, two in the Czech Republic
ISO Status
DS/EN ISO 9001 Quality management 1991:2000; DS/ISO 14001 Environmental management 2001; DS 2403 Energy management
Processes
Drylaid, carded, needlepunched, thermal bonded, spunbond/meltblown, technical air-lay
Brand Names
Fibertex, Fibertex Nonwovens, Flexback, Formtex, Compoflex, Multigeo, Superflor, Weedseal, Fiberforce, Fibergreen, Fibertex patio, Fibertex universal, Fiberacoustic, TWO-in-ONE, Comfortback, Matchback, Woodback, Q-Match, Making the perfect match, FibertexCOMFORT, FibertexElite, FibertexDual, FibertexPRINT
Major Markets
Industrial textiles—primary and secondary carpet backings, automotive, acoustics, furniture and bedding, filtration; technical textiles—building and construction, composites, do-it-yourself, horticulture; hygiene—applications within baby diapers, femcare and adult incontinence.
The big news at Danish roll goods producer Fibertex last year was the appointment of joint CEOs to oversee the company’s two divisions— Fibertex Personal Care and Fibertex Industrial Nonwovens. The two divisions, although operating separately, had until last year, been overseen by one company CEO and led by two general managers— Jorgen Bech Madsen on the industrial side and Mikael Staal Axelsen within personal care—who are now acting at joint CEOs.
The change had little effect in the day-to-day running of the business. “Fibertex has always operated as two independent companies so we cleared up the organization and changed the corporate structure to integrate the organization into two businesses,” said Mr. Madsen. “We are now leaner and more focused and the two groups still share a number of departments such as IT and finance.”
Amidst this change, total sales were flat at $295 million (DKK 1590 million) for the company last year as gains in the company’s personal care division offset declines on the industrial side of its business. Profits, meanwhile increased from DKK13.9 million to DKK36.2 million thanks to a drop in raw material prices as well as increased efficiencies in the group’s Malaysian spunmelt operation.
The Personal Care division’s sales exceeded DKK 1 billion last year, just more than a decade after its establishment. The division operates three spunmelt lines in Fibertex as well as two at its Malaysian facility. Its share of the global nonwoven hygiene market has been reported at 7%.
According to Mr. Axelsen, this side of Fibertex’s business continues to be impacted by oversupply in the European spunmelt market, a situation that’s expected to continue for the next three to four years; however, efforts toward diversification as well as operational efficiencies have enabled Fibertex to retain a competitive edge in the market, even in the midst of the economic crisis.
“The overcapacity was already there before the crisis hit. We really saw its impact in developing regions,” Mr. Axelsen continued. “However, we have a good marketing profile in that we can offer our customers a range of materials from value added products to strait commodity items.”
One of these value adds is the production of printed nonwovens. Through a joint venture with Innowo Print, Fibertex last year established a factory to print on lightweight nonwovens in up to six colors, allowing customers to empower their brands with images and designs. Other capabilities include high barrier nonwovens and bicomponent materials.
“Specialty hygiene opens some doors but the big volumes are still in the commodity areas.”
Fibertex’s Malaysian business still predominantly sells to multinational companies that are present in that area. “The local players are supplying the local diaper market,” Mr. Axelsen said. “We find that we better match professional customers.”
Meanwhile, Fibertex’s Industrial business—with key markets ranging from automotives, geotextiles, filtration, construction and carpet backings—has been hit hard by the economic crisis; however this impact was softened somewhat by an optimization plan put in place before the crisis hit. This plan included a DKK130 million investment in new state-of-the-art equipment, lessened raw material consumption, price increases and staff reductions.
Begun in fall 2007, the plan included the start-up of two production lines, one in Aalborg, Denmark, and one in the Czech Republic— which use fewer raw materials; price increases; the shutdown of older production lines including an entire older factory in the Czech Republic; streamlined production process; innovation and product development.
“We now have two modern, state-of-the-art facilities in Denmark and the Czech Republic,” Mr. Madsen said. “We didn’t know when we did it that there was going to be an economic crisis, but we are glad we did it because it allowed us to shake out all of our fat.”
As a result of the economic crisis, Fibertex’s automotive business was down significantly during the last quarter of 2008 and first quarter of 2009. While things have started to gradually improve, the market is still behind expectations. “There is a lot of uncertainty, but we are focusing on what’s next. There have been a lot of research and development efforts and we hope to launch a number of new products out of our Czech Republic site once things turn around,” said Mr. Madsen.
Citing features like acoustical performance and lower weights, he added that nonwovens are ideal for automotives and he expects them to be offered on a much broader platform to the automotive market post recovery.
Fibertex’s operation will be better positioned once the automotive market recovers. As part of the optimization effort, converting operations were moved out of Denmark to the Czech Republic, bringing more labor-intensive operations to lower wage areas to trim production costs.
Meanwhile, construction is finally at a level where Fibertex expected it to be. While some activity is seasonal, more has to do with a push from governments to spend money on infrastructure improvements.
As things continue to improve, filtration is expected to emerge as an important growth market for Fibertex, which so far does not have a large presence there. Some of this growth will stem from Fibertex’s interest in nanofilter technology, which is currently being made on a pilot line. “It will take some time before this is truly a market focus,” Mr. Madsen explained.
Sales: $295 Million
Description: Key Personnel
Mikael Staal Axelsen, CEO, Fibertex Personal Care; Jorgen Bech Madsen, CEO, Fibertex Industrial Nonwovens; Ole Houmann, CFO; Kenneth Mynster Dolmer, purchasing director
Plants
Two in Aalborg; one in Malaysia, two in the Czech Republic
ISO Status
DS/EN ISO 9001 Quality management 1991:2000; DS/ISO 14001 Environmental management 2001; DS 2403 Energy management
Processes
Drylaid, carded, needlepunched, thermal bonded, spunbond/meltblown, technical air-lay
Brand Names
Fibertex, Fibertex Nonwovens, Flexback, Formtex, Compoflex, Multigeo, Superflor, Weedseal, Fiberforce, Fibergreen, Fibertex patio, Fibertex universal, Fiberacoustic, TWO-in-ONE, Comfortback, Matchback, Woodback, Q-Match, Making the perfect match, FibertexCOMFORT, FibertexElite, FibertexDual, FibertexPRINT
Major Markets
Industrial textiles—primary and secondary carpet backings, automotive, acoustics, furniture and bedding, filtration; technical textiles—building and construction, composites, do-it-yourself, horticulture; hygiene—applications within baby diapers, femcare and adult incontinence.
The big news at Danish roll goods producer Fibertex last year was the appointment of joint CEOs to oversee the company’s two divisions— Fibertex Personal Care and Fibertex Industrial Nonwovens. The two divisions, although operating separately, had until last year, been overseen by one company CEO and led by two general managers— Jorgen Bech Madsen on the industrial side and Mikael Staal Axelsen within personal care—who are now acting at joint CEOs.
The change had little effect in the day-to-day running of the business. “Fibertex has always operated as two independent companies so we cleared up the organization and changed the corporate structure to integrate the organization into two businesses,” said Mr. Madsen. “We are now leaner and more focused and the two groups still share a number of departments such as IT and finance.”
Amidst this change, total sales were flat at $295 million (DKK 1590 million) for the company last year as gains in the company’s personal care division offset declines on the industrial side of its business. Profits, meanwhile increased from DKK13.9 million to DKK36.2 million thanks to a drop in raw material prices as well as increased efficiencies in the group’s Malaysian spunmelt operation.
The Personal Care division’s sales exceeded DKK 1 billion last year, just more than a decade after its establishment. The division operates three spunmelt lines in Fibertex as well as two at its Malaysian facility. Its share of the global nonwoven hygiene market has been reported at 7%.
According to Mr. Axelsen, this side of Fibertex’s business continues to be impacted by oversupply in the European spunmelt market, a situation that’s expected to continue for the next three to four years; however, efforts toward diversification as well as operational efficiencies have enabled Fibertex to retain a competitive edge in the market, even in the midst of the economic crisis.
“The overcapacity was already there before the crisis hit. We really saw its impact in developing regions,” Mr. Axelsen continued. “However, we have a good marketing profile in that we can offer our customers a range of materials from value added products to strait commodity items.”
One of these value adds is the production of printed nonwovens. Through a joint venture with Innowo Print, Fibertex last year established a factory to print on lightweight nonwovens in up to six colors, allowing customers to empower their brands with images and designs. Other capabilities include high barrier nonwovens and bicomponent materials.
“Specialty hygiene opens some doors but the big volumes are still in the commodity areas.”
Fibertex’s Malaysian business still predominantly sells to multinational companies that are present in that area. “The local players are supplying the local diaper market,” Mr. Axelsen said. “We find that we better match professional customers.”
Meanwhile, Fibertex’s Industrial business—with key markets ranging from automotives, geotextiles, filtration, construction and carpet backings—has been hit hard by the economic crisis; however this impact was softened somewhat by an optimization plan put in place before the crisis hit. This plan included a DKK130 million investment in new state-of-the-art equipment, lessened raw material consumption, price increases and staff reductions.
Begun in fall 2007, the plan included the start-up of two production lines, one in Aalborg, Denmark, and one in the Czech Republic— which use fewer raw materials; price increases; the shutdown of older production lines including an entire older factory in the Czech Republic; streamlined production process; innovation and product development.
“We now have two modern, state-of-the-art facilities in Denmark and the Czech Republic,” Mr. Madsen said. “We didn’t know when we did it that there was going to be an economic crisis, but we are glad we did it because it allowed us to shake out all of our fat.”
As a result of the economic crisis, Fibertex’s automotive business was down significantly during the last quarter of 2008 and first quarter of 2009. While things have started to gradually improve, the market is still behind expectations. “There is a lot of uncertainty, but we are focusing on what’s next. There have been a lot of research and development efforts and we hope to launch a number of new products out of our Czech Republic site once things turn around,” said Mr. Madsen.
Citing features like acoustical performance and lower weights, he added that nonwovens are ideal for automotives and he expects them to be offered on a much broader platform to the automotive market post recovery.
Fibertex’s operation will be better positioned once the automotive market recovers. As part of the optimization effort, converting operations were moved out of Denmark to the Czech Republic, bringing more labor-intensive operations to lower wage areas to trim production costs.
Meanwhile, construction is finally at a level where Fibertex expected it to be. While some activity is seasonal, more has to do with a push from governments to spend money on infrastructure improvements.
As things continue to improve, filtration is expected to emerge as an important growth market for Fibertex, which so far does not have a large presence there. Some of this growth will stem from Fibertex’s interest in nanofilter technology, which is currently being made on a pilot line. “It will take some time before this is truly a market focus,” Mr. Madsen explained.
Location: Aalborg, Denmark
Sales: $236 million
Description: Key Personnel
Mikael Staal Axelsen, CEO, Fibertex Personal Care; Jorgen Bech Madsen, CEO, Fibertex Industrial Nonwovens; Ole Houmann, CFO; Kenneth Mynster Dolmer, purchasing director
Plants
Two in Aalborg; one in Malaysia, two in the Czech Republic, one in Germany, one in South Africa
Processes
Drylaid, carded, needlepunched, thermal bonded, spunbond/meltblown, technical airlaid
Brand Names
Fibertex, Fibertex Nonwovens, Flexback, Formtex, Compoflex, Multigeo, Weedseal, Fibergreen, Fibertex Patio, Fibertex Universal, Fiberacoustic, TWO-in-ONE, Comfortback, Weedseal, Woodback, Q-Match, Making the perfect match, FibertexCOMFORT, FibertexElite, FibertexDual, FibertexPRINT
Major Markets
Industrial textiles—primary and secondary carpet backings, automotives, acoustics, furniture and bedding, filtration, nanotechnology; technical textiles—building and construction, composites, do-it-yourself, horticulture; hygiene—applications within baby diapers, femcare and adult incontinence
With a new Malaysian line planned for its hygiene business and a new South African plant in the works for its industrial division, Denmark’s Fibertex continues to invest in the future. And, so far, its investment strategy has paid off with sales volumes continuing to rise and new investments underway.
As for last year, executives described its business in 2009 as good and report that conditions have been improving during the first half of 2010. While total nonwovens sales decreased from DKK1.589 million to DKK1.350 million, this was due largely to lower raw material prices on the hygiene side and a drop in volume in the company’s industrial nonwovens division. At the same time, operating profit (EBIT) increased from DKK88 million to DKK117 million, thanks to the plunge in raw material prices as well as better-than-expected results in its Malaysian operation. Earnings within the Industrial Nonwovens segment were challenged this year due to the difficult market situations.
In recent years, Fibertex’s Personal Care division has grown significantly, with sales increasing from DKK642 million in 2005 to as high as DKK1090 in 2008 and decreasing slightly to DKK935 million. This growth has largely been attributed to ambitious investment in spunmelt technology. Today, Fibertex operates three state-of-the art lines in Aalborg as well as two in an Asian facility near Kuala Lumpar, Malaysia, and personal care sales are expected to increase even further as a new Malaysian line comes onstream in late 2011.
“Asian growth continues to be strong,” said Mikael Staal Axelsen, CEO of Fibertex Personal Care. “Southeast Asia in particular is leading this growth.”
Announced in March 2010, Fibertex’s third Malaysian line will add approximately 22,000 tons of spunmelt capacity to the facility, representing a 65% increase, when it comes onstream in late 2011.
Fibertex opened the Malaysian facility in 2003 and added a second line to the site in 2005. In September, Fibertex announced it would invest $7.5 million in adding a new beam on one of the lines. The new beam will be operational in the second half of the year.
Also benefitting its hygiene business is its joint venture company Innowo Print, which operates a factory in Germany with Christiansen Print for direct printing onto nonwoven materials. Among the developments made through this partnership, which was formed in early 2008, are the ability to print patterns on lightweight nonwoven materials that are completely harmless, do not rub off and have every conceivable health and safety approval, to add fragrance to a color or add a print to a color that changes color. Already, the venture prints on 1000 of the roughly 75,000 tons of nonwovens that Fibertex Personal Care makes each year.
On the industrial side of Fibertex’s business, many key markets were challenged in 2009, causing sales to decrease from DKK500 million to DK415 million after the year started with a 35% first quarter drop in revenue. These difficulties were felt the hardest in the automotive and bedding industries, which executives reported, began to recover as the year progressed and government initiative programs began to take hold.
Luckily for Fibertex, these challenges were somewhat buffered by a restructuring program begun before the global economic crisis hit in 2008. This plan included a DKK130 million investment in new, state-of-the-art equipment, lessened raw material consumption, price increases and staff reductions. More specifically, the plan included the start-up of two modern needlepunch lines, one in Aalborg and the other in the Czech Republic, which use fewer raw materials, price increases, the shutdown of outdated production lines including an entire older factory in the Czech Republic, the relocation of several lines from Denmark to the Czech Republic, a more streamlined production process, innovation and product development.
“We continue to move a lot of this business into lower cost base regions like the Czech Republic facilities,” said Jorgen Bech Madsen, CEO of Fibertex Industrial Nonwovens. “We moved an upgraded needlepunch line from Denmark to the Czech Republic. Now in Denmark there is just one ultra modern needlepunch line and some fiber production. “
Amidst these efforts, Fibertex has not abandoned its quest to bring its industrial business into growing geographical markets. In early January, the company announced it has started a new operation, including a state-of-the-art needlepunch line, in South Africa. The new facility will make and market needlepunch nonwovens, primarily geotextiles for road construction as well as products for the growing South African automotives industry, which is moving toward more sophisticated, lower weight products.
“There are currently a lot of nonwovens being sold in Africa but they are heavier weights, made on older machines, and this investment will serve infrastructural programs in South Africa and neighboring countries,” Mr. Madsen said.
By creating this subsidiary, Fibertex hopes to capitalize on growth in South Africa where plans are in place to invest more than $96 billion in infrastructure improvements during the next five years. These include large road and bridge construction projects, which will require large amounts of geotextile fabrics. Even with the great potential the market holds, it took Fibertex three years to decide to invest in South Africa because it can be difficult to do business there, Mr. Madsen added.
The new, high-tech, state-of-the-art factory will initially employ just over 40 employees. Annual turnover is expected to be approximately $12-$15 million with decent profit in the coming years. From a long-term strategic perspective, the project is expected to serve as a gateway—not only to southern Africa but eventually also to other markets in the Southern Hemisphere such as Australasia, India, the Middle East and South America.
The South African company is jointly owned by Fibertex, the Danish Industrialization Fund for Developing Countries (IFU) and the South African company Safyr, which is owned partly by local industry specialists and partly by Industrial Development Corporation (IDC)—South Africa’s equivalent to the Danish State investment fund Vækstfonden. Fibertex will invest approximately $5 million in the company, acquiring a 26% ownership share. IFU has previously participated in a similar Fibertex project in Malaysia, and Fibertex has the option of acquiring IFU’s 25.8% in the future.
Sales: $236 million
Description: Key Personnel
Mikael Staal Axelsen, CEO, Fibertex Personal Care; Jorgen Bech Madsen, CEO, Fibertex Industrial Nonwovens; Ole Houmann, CFO; Kenneth Mynster Dolmer, purchasing director
Plants
Two in Aalborg; one in Malaysia, two in the Czech Republic, one in Germany, one in South Africa
Processes
Drylaid, carded, needlepunched, thermal bonded, spunbond/meltblown, technical airlaid
Brand Names
Fibertex, Fibertex Nonwovens, Flexback, Formtex, Compoflex, Multigeo, Weedseal, Fibergreen, Fibertex Patio, Fibertex Universal, Fiberacoustic, TWO-in-ONE, Comfortback, Weedseal, Woodback, Q-Match, Making the perfect match, FibertexCOMFORT, FibertexElite, FibertexDual, FibertexPRINT
Major Markets
Industrial textiles—primary and secondary carpet backings, automotives, acoustics, furniture and bedding, filtration, nanotechnology; technical textiles—building and construction, composites, do-it-yourself, horticulture; hygiene—applications within baby diapers, femcare and adult incontinence
With a new Malaysian line planned for its hygiene business and a new South African plant in the works for its industrial division, Denmark’s Fibertex continues to invest in the future. And, so far, its investment strategy has paid off with sales volumes continuing to rise and new investments underway.
As for last year, executives described its business in 2009 as good and report that conditions have been improving during the first half of 2010. While total nonwovens sales decreased from DKK1.589 million to DKK1.350 million, this was due largely to lower raw material prices on the hygiene side and a drop in volume in the company’s industrial nonwovens division. At the same time, operating profit (EBIT) increased from DKK88 million to DKK117 million, thanks to the plunge in raw material prices as well as better-than-expected results in its Malaysian operation. Earnings within the Industrial Nonwovens segment were challenged this year due to the difficult market situations.
In recent years, Fibertex’s Personal Care division has grown significantly, with sales increasing from DKK642 million in 2005 to as high as DKK1090 in 2008 and decreasing slightly to DKK935 million. This growth has largely been attributed to ambitious investment in spunmelt technology. Today, Fibertex operates three state-of-the art lines in Aalborg as well as two in an Asian facility near Kuala Lumpar, Malaysia, and personal care sales are expected to increase even further as a new Malaysian line comes onstream in late 2011.
“Asian growth continues to be strong,” said Mikael Staal Axelsen, CEO of Fibertex Personal Care. “Southeast Asia in particular is leading this growth.”
Announced in March 2010, Fibertex’s third Malaysian line will add approximately 22,000 tons of spunmelt capacity to the facility, representing a 65% increase, when it comes onstream in late 2011.
Fibertex opened the Malaysian facility in 2003 and added a second line to the site in 2005. In September, Fibertex announced it would invest $7.5 million in adding a new beam on one of the lines. The new beam will be operational in the second half of the year.
Also benefitting its hygiene business is its joint venture company Innowo Print, which operates a factory in Germany with Christiansen Print for direct printing onto nonwoven materials. Among the developments made through this partnership, which was formed in early 2008, are the ability to print patterns on lightweight nonwoven materials that are completely harmless, do not rub off and have every conceivable health and safety approval, to add fragrance to a color or add a print to a color that changes color. Already, the venture prints on 1000 of the roughly 75,000 tons of nonwovens that Fibertex Personal Care makes each year.
On the industrial side of Fibertex’s business, many key markets were challenged in 2009, causing sales to decrease from DKK500 million to DK415 million after the year started with a 35% first quarter drop in revenue. These difficulties were felt the hardest in the automotive and bedding industries, which executives reported, began to recover as the year progressed and government initiative programs began to take hold.
Luckily for Fibertex, these challenges were somewhat buffered by a restructuring program begun before the global economic crisis hit in 2008. This plan included a DKK130 million investment in new, state-of-the-art equipment, lessened raw material consumption, price increases and staff reductions. More specifically, the plan included the start-up of two modern needlepunch lines, one in Aalborg and the other in the Czech Republic, which use fewer raw materials, price increases, the shutdown of outdated production lines including an entire older factory in the Czech Republic, the relocation of several lines from Denmark to the Czech Republic, a more streamlined production process, innovation and product development.
“We continue to move a lot of this business into lower cost base regions like the Czech Republic facilities,” said Jorgen Bech Madsen, CEO of Fibertex Industrial Nonwovens. “We moved an upgraded needlepunch line from Denmark to the Czech Republic. Now in Denmark there is just one ultra modern needlepunch line and some fiber production. “
Amidst these efforts, Fibertex has not abandoned its quest to bring its industrial business into growing geographical markets. In early January, the company announced it has started a new operation, including a state-of-the-art needlepunch line, in South Africa. The new facility will make and market needlepunch nonwovens, primarily geotextiles for road construction as well as products for the growing South African automotives industry, which is moving toward more sophisticated, lower weight products.
“There are currently a lot of nonwovens being sold in Africa but they are heavier weights, made on older machines, and this investment will serve infrastructural programs in South Africa and neighboring countries,” Mr. Madsen said.
By creating this subsidiary, Fibertex hopes to capitalize on growth in South Africa where plans are in place to invest more than $96 billion in infrastructure improvements during the next five years. These include large road and bridge construction projects, which will require large amounts of geotextile fabrics. Even with the great potential the market holds, it took Fibertex three years to decide to invest in South Africa because it can be difficult to do business there, Mr. Madsen added.
The new, high-tech, state-of-the-art factory will initially employ just over 40 employees. Annual turnover is expected to be approximately $12-$15 million with decent profit in the coming years. From a long-term strategic perspective, the project is expected to serve as a gateway—not only to southern Africa but eventually also to other markets in the Southern Hemisphere such as Australasia, India, the Middle East and South America.
The South African company is jointly owned by Fibertex, the Danish Industrialization Fund for Developing Countries (IFU) and the South African company Safyr, which is owned partly by local industry specialists and partly by Industrial Development Corporation (IDC)—South Africa’s equivalent to the Danish State investment fund Vækstfonden. Fibertex will invest approximately $5 million in the company, acquiring a 26% ownership share. IFU has previously participated in a similar Fibertex project in Malaysia, and Fibertex has the option of acquiring IFU’s 25.8% in the future.
Aalborg, Denmark
www.fibertex.com
2011 Nonwovens Sales: $126 million
Key Personnel: Jørgen Bech Madsen, CEO; Henrik Kjeldsen, CCO; Lars Bertelsen, COO; Henrik Eigenbrod, CFO; Keld Lauridsen, group R&D manager; Bjarne Knudsen, CEO, Czech Republic
Plants: Denmark, the Czech Republic, France and South Africa
Processes: Needlepunch, spunlace, impregnation, coating and a range of finishing technologies
Major Markets: Acoustics, automotive, bedding, composites, construction, filtration, flooring, furniture, geotextiles, home and garden, horticulture
Fibertex Nonwovens was separated from Fibertex Personal Care in 2011 so that the two businesses, which had become very different over time, could operate independently in their key markets. “The separation enabled each company to focus on and communicate its strengths and values to the market,” says Jørgen Bech Madsen, CEO, Fibertex Nonwovens. “The transition has progressed as scheduled and well.”
Today, Fibertex Nonwovens manufactures nonwovens for many different product applications. Global business segments include: automotive (insulation of engine compartments, car ceilings, door panels, trim panels and acoustic solutions); construction (geotextiles, building and composite materials, as well as do-it-yourself products); industrial (furniture, bedding, carpets and flooring and the med-tech industry); filtration (air, liquid and odor filters) and acoustics; wipes (wet wipes for the consumer market and specialist products for the industrial market).
The company has a strong position in a number of areas with significant growth perspectives, Madsen notes. “Apart from the considerable growth in global demand for products for the automotive industry, we expect to see a range of major infrastructure projects and construction works take large amounts of geotextiles in the coming years both in Europe and in the global growth markets.”
Fibertex Nonwovens generated revenue of DKK 726 million in 2011, compared to DKK 413 million in 2010. The improvement was mainly due to the acquisition of French nonwovens manufacturer Tharreau Industries, which specializes in developing products for the automotive industry and for industrial applications.
Tharreau contributed DKK 260 million to consolidated revenue from the date of takeover in May, according to the 2011 annual report for Fibertex Nonwoven’s parent company Schow & Co. Tharreau has been renamed Fibertex Nonwovens S.A.
The acquisition has not only strengthened Fibertex Nonwovens A/S but also generated substantial synergies for both companies, according to Madsen. “The objective of the acquisition of Tharreau Industries was to accelerate the strategic development of Fibertex Nonwovens to become a European market leader and create a strong platform for geographical growth. Since the acquisition we have focused on the integration of Fibertex Nonwovens S.A. in Fibertex Nonwovens A/S. Today, Fibertex Nonwovens has 98.8% of the shares in Fibertex Nonwovens S.A.”
In terms of the company’s strategic direction for the future, Fibertex Nonwovens intends to become the leading, globally positioned supplier of nonwovens with value added and cost-effective solutions to the automotive industry, industrial end uses, construction and composites industry, filtration, specialty wipes and medical end uses, says Madsen.
Other goals include increasing profitability and earning power through innovative solutions, technological leadership and, as a benchmark supplier, having strong value proposition to deliver solutions at competitive costs throughout the value chain.
Meanwhile, Madsen notes the importance of supporting his company’s customers’ geographical expansion in growth markets, and will aim to deliver sustainable and profitable global growth through a robust business platform. An example of this is the company’s recent expansion into South Africa where it will make needlepunch nonwovens for geotextile and automotive applications.
According to the 2011 annual report, Fibertex Nonwovens has focused its efforts on adapting to the current competitive market situation. “The company has supported these efforts by increasingly working the markets, winning marketshare in its core business areas while also improving the sale of products for the composite industry and of specialist high-value products.”
The company has also identified a number of new business opportunities for 2012. “In terms of R&D and innovation, the company has built a strong product portfolio supporting the long-term strategy of increasing the proportion of high-value products.” At the time of its annual report, Fibertex Nonwovens expected to generate revenue of around DKK 900 million.
www.fibertex.com
2011 Nonwovens Sales: $126 million
Key Personnel: Jørgen Bech Madsen, CEO; Henrik Kjeldsen, CCO; Lars Bertelsen, COO; Henrik Eigenbrod, CFO; Keld Lauridsen, group R&D manager; Bjarne Knudsen, CEO, Czech Republic
Plants: Denmark, the Czech Republic, France and South Africa
Processes: Needlepunch, spunlace, impregnation, coating and a range of finishing technologies
Major Markets: Acoustics, automotive, bedding, composites, construction, filtration, flooring, furniture, geotextiles, home and garden, horticulture
Fibertex Nonwovens was separated from Fibertex Personal Care in 2011 so that the two businesses, which had become very different over time, could operate independently in their key markets. “The separation enabled each company to focus on and communicate its strengths and values to the market,” says Jørgen Bech Madsen, CEO, Fibertex Nonwovens. “The transition has progressed as scheduled and well.”
Today, Fibertex Nonwovens manufactures nonwovens for many different product applications. Global business segments include: automotive (insulation of engine compartments, car ceilings, door panels, trim panels and acoustic solutions); construction (geotextiles, building and composite materials, as well as do-it-yourself products); industrial (furniture, bedding, carpets and flooring and the med-tech industry); filtration (air, liquid and odor filters) and acoustics; wipes (wet wipes for the consumer market and specialist products for the industrial market).
The company has a strong position in a number of areas with significant growth perspectives, Madsen notes. “Apart from the considerable growth in global demand for products for the automotive industry, we expect to see a range of major infrastructure projects and construction works take large amounts of geotextiles in the coming years both in Europe and in the global growth markets.”
Fibertex Nonwovens generated revenue of DKK 726 million in 2011, compared to DKK 413 million in 2010. The improvement was mainly due to the acquisition of French nonwovens manufacturer Tharreau Industries, which specializes in developing products for the automotive industry and for industrial applications.
Tharreau contributed DKK 260 million to consolidated revenue from the date of takeover in May, according to the 2011 annual report for Fibertex Nonwoven’s parent company Schow & Co. Tharreau has been renamed Fibertex Nonwovens S.A.
The acquisition has not only strengthened Fibertex Nonwovens A/S but also generated substantial synergies for both companies, according to Madsen. “The objective of the acquisition of Tharreau Industries was to accelerate the strategic development of Fibertex Nonwovens to become a European market leader and create a strong platform for geographical growth. Since the acquisition we have focused on the integration of Fibertex Nonwovens S.A. in Fibertex Nonwovens A/S. Today, Fibertex Nonwovens has 98.8% of the shares in Fibertex Nonwovens S.A.”
In terms of the company’s strategic direction for the future, Fibertex Nonwovens intends to become the leading, globally positioned supplier of nonwovens with value added and cost-effective solutions to the automotive industry, industrial end uses, construction and composites industry, filtration, specialty wipes and medical end uses, says Madsen.
Other goals include increasing profitability and earning power through innovative solutions, technological leadership and, as a benchmark supplier, having strong value proposition to deliver solutions at competitive costs throughout the value chain.
Meanwhile, Madsen notes the importance of supporting his company’s customers’ geographical expansion in growth markets, and will aim to deliver sustainable and profitable global growth through a robust business platform. An example of this is the company’s recent expansion into South Africa where it will make needlepunch nonwovens for geotextile and automotive applications.
According to the 2011 annual report, Fibertex Nonwovens has focused its efforts on adapting to the current competitive market situation. “The company has supported these efforts by increasingly working the markets, winning marketshare in its core business areas while also improving the sale of products for the composite industry and of specialist high-value products.”
The company has also identified a number of new business opportunities for 2012. “In terms of R&D and innovation, the company has built a strong product portfolio supporting the long-term strategy of increasing the proportion of high-value products.” At the time of its annual report, Fibertex Nonwovens expected to generate revenue of around DKK 900 million.
Aalborg, Denmark
www.fibertexpersonalcare.com
2011 Nonwovens Sales: $229 million
Key Personnel: Mikael Staal Axelsen, group CEO; Mette Due Søgaard, CTO, Denmark; Anders Søgaard, COO, Denmark; Kenneth Mynster Dolmer, CCO, Denmark; Claus Svanberg, CFO, Denmark; Peter Andersen, CEO, Malaysia; Peter Bach Sigvardt, COO, Malaysia; Ong Soo Fen, CFO, Malaysia
Plants: Three lines in Denmark, three in Malaysia
Processes: Spunbond/spunmelt
Brands: Comfort, Elite, Dual
Major Markets: Hygiene—applications within baby diapers, feminine care and adult incontinence
In 2011, Fibertex Personal Care began operating independently from Fibertex Nonwovens, which also made the Top Company ranking this year at number 35 (see page 88). With facilities in Denmark and Malaysia, Fibertex Personal Care continues to make strategic investments, priming its operations for future growth.
Recognizing great potential in the developing Asia-Pacific region, the company has been expanding capacity in Malyasia, installing a third line in November of 2011, which will add about 22,000 tons of capacity per year. Mikael Staal Axelsen, group CEO, says he expects the line will be running at full capacity by the end of 2012.
The company also announced a $55 million investment in a fourth state-of-the-art production line in Malaysia that will increase total capacity by 30%, to 70,000 tons per year, over the next two years.
The Malaysia division performed very well in 2011, according to the 2011 annual report from parent company Schow & Co. Capacity utilization was high and production efficiency was satisfactory throughout the year. The challenge moving forward will be to utilize the greater production capacity while manufacturing products of high and uniform quality on a consistent basis.
Overall, Fibertex Personal Care’s revenue increased from DKK 1.24 billion in 2010 to DKK 1.31 billion in 2011, driven by higher selling prices that were triggered by higher raw materials costs, the company says. However, earnings fell, due in part to weaker sales in Europe in the first half of the year.
Volumes declined during the year due in part to “changing buying patters of certain major customers, and certain Middle East markets were affected by political unrest in the region, causing a drop in sales,” the annual report states.
While the company sees limited growth opportunities and strong price pressures in Europe, Asia represents solid opportunities for organic expansion in the coming years. “There is a clear overcapacity of spunmelt right now,” Axelsen says of Europe. However, the company continues to develop value-added products at its Denmark facilities.
“We are looking to make our products more attractive in the market but in principle it’s also important to cope with this overcapacity,” notes Axelsen.
In its annual report, the company says it expects to generate revenue of about DKK 1.5-1.6 billion in 2012, pending changes in raw material costs, which have since stabilized.
As for company achievements to note, Fibertex Personal Care received a Business Partner Excellence Award from Procter & Gamble in 2011, which is given to top suppliers. This was the company’s third such award. Axlesen says the recognition represents the company’s commitment to high quality and service. “This is where we see our key strengths,” he adds.
In April 2012, P&G also issued its environmental sustainability scorecard, which is designed to rate suppliers on key sustainability metrics across their supply chains. Fibertex Personal Care was among 17 companies that received the highest possible score.
This latest recognition from P&G exemplifies the company’s focus on the environment. Fibertex Personal Care has made a significant effort to reduce its energy consumption and to change its processes in order to convert its heating source from electricity to natural gas.
The company’s focus on energy consumption and cost savings has reduced carbon emissions per kilo of finished goods by about 20% over the past 10 years. The company is planning additional energy-saving projects for 2012 at factories in Denmark and Malaysia.
Additionally, as much as 95% of waste from production is reused, and the rest is incinerated for energy recovery purposes. The company intends to continue mapping its environmental footprint, applying lifecycle analysis and other tools to reduce its impact further.
In other company dealings, Fibertex Personal Care’s joint venture (15% ownership) in Germany, Innowo, recently installed a second production line. The nonwoven printing company offers highly specialized, value-added prints that can be applied directly onto nonwovens in various applications via highly advanced technologies, says Axelsen.
www.fibertexpersonalcare.com
2011 Nonwovens Sales: $229 million
Key Personnel: Mikael Staal Axelsen, group CEO; Mette Due Søgaard, CTO, Denmark; Anders Søgaard, COO, Denmark; Kenneth Mynster Dolmer, CCO, Denmark; Claus Svanberg, CFO, Denmark; Peter Andersen, CEO, Malaysia; Peter Bach Sigvardt, COO, Malaysia; Ong Soo Fen, CFO, Malaysia
Plants: Three lines in Denmark, three in Malaysia
Processes: Spunbond/spunmelt
Brands: Comfort, Elite, Dual
Major Markets: Hygiene—applications within baby diapers, feminine care and adult incontinence
In 2011, Fibertex Personal Care began operating independently from Fibertex Nonwovens, which also made the Top Company ranking this year at number 35 (see page 88). With facilities in Denmark and Malaysia, Fibertex Personal Care continues to make strategic investments, priming its operations for future growth.
Recognizing great potential in the developing Asia-Pacific region, the company has been expanding capacity in Malyasia, installing a third line in November of 2011, which will add about 22,000 tons of capacity per year. Mikael Staal Axelsen, group CEO, says he expects the line will be running at full capacity by the end of 2012.
The company also announced a $55 million investment in a fourth state-of-the-art production line in Malaysia that will increase total capacity by 30%, to 70,000 tons per year, over the next two years.
The Malaysia division performed very well in 2011, according to the 2011 annual report from parent company Schow & Co. Capacity utilization was high and production efficiency was satisfactory throughout the year. The challenge moving forward will be to utilize the greater production capacity while manufacturing products of high and uniform quality on a consistent basis.
Overall, Fibertex Personal Care’s revenue increased from DKK 1.24 billion in 2010 to DKK 1.31 billion in 2011, driven by higher selling prices that were triggered by higher raw materials costs, the company says. However, earnings fell, due in part to weaker sales in Europe in the first half of the year.
Volumes declined during the year due in part to “changing buying patters of certain major customers, and certain Middle East markets were affected by political unrest in the region, causing a drop in sales,” the annual report states.
While the company sees limited growth opportunities and strong price pressures in Europe, Asia represents solid opportunities for organic expansion in the coming years. “There is a clear overcapacity of spunmelt right now,” Axelsen says of Europe. However, the company continues to develop value-added products at its Denmark facilities.
“We are looking to make our products more attractive in the market but in principle it’s also important to cope with this overcapacity,” notes Axelsen.
In its annual report, the company says it expects to generate revenue of about DKK 1.5-1.6 billion in 2012, pending changes in raw material costs, which have since stabilized.
As for company achievements to note, Fibertex Personal Care received a Business Partner Excellence Award from Procter & Gamble in 2011, which is given to top suppliers. This was the company’s third such award. Axlesen says the recognition represents the company’s commitment to high quality and service. “This is where we see our key strengths,” he adds.
In April 2012, P&G also issued its environmental sustainability scorecard, which is designed to rate suppliers on key sustainability metrics across their supply chains. Fibertex Personal Care was among 17 companies that received the highest possible score.
This latest recognition from P&G exemplifies the company’s focus on the environment. Fibertex Personal Care has made a significant effort to reduce its energy consumption and to change its processes in order to convert its heating source from electricity to natural gas.
The company’s focus on energy consumption and cost savings has reduced carbon emissions per kilo of finished goods by about 20% over the past 10 years. The company is planning additional energy-saving projects for 2012 at factories in Denmark and Malaysia.
Additionally, as much as 95% of waste from production is reused, and the rest is incinerated for energy recovery purposes. The company intends to continue mapping its environmental footprint, applying lifecycle analysis and other tools to reduce its impact further.
In other company dealings, Fibertex Personal Care’s joint venture (15% ownership) in Germany, Innowo, recently installed a second production line. The nonwoven printing company offers highly specialized, value-added prints that can be applied directly onto nonwovens in various applications via highly advanced technologies, says Axelsen.
Aalborg, Denmark
www.fibertex.com
2012 Nonwovens Sales: $161 million
Key Personnel: Jorgen Bech Madsen, CEO, Henrik Kjeldsen, CCO, Lars Bertelsen, COO, Henrik Eigenbrod, CFO, Keld Lauridsen, group R&D manager, Bjarne Knudsen, CEO, Czech Republic
Plants: Denmark, the Czech Republic, France and South Africa
Processes: Needlepunch, spunlace, impregnation, coating and a range of finishing technologies
Major Markets: Acoustics, automotive, bedding, composites, construction, filtration, flooring, furniture, geotextiles, home and garden, horticulture
Sales at Fibertex Nonwovens received a boost in 2012 due to the acquisition of French Tharreau Industries in May 2011 as well as a generally higher level of business activity across all of its business for much of the year.
Including the Tharreau business, which is now known as Fibertex Nonwovens S.A., Fibertex, based in Aalborg, Denmark, has operations in Denmark, the Czech Republic, France and South Africa and serves industrial markets like automotives, construction, filtration and geotextiles. The company was created in 2011 when it split from sister company, Fibertex Personal Care.
In the past couple of years, Fibertex Nonwovens has focused on broadening its global footprint. “We try to go where we see the right opportunities for growth,” says Jorgen Bech Madsen, CEO. “And from there we adapt to competitive market situations.”
The acquisition of Tharreau Industries reportedly generated substantial synergies for both companies and has helped accelerate Fibertex Nonwovens’ strategy of becoming a European market leader. The operation contains needlepunch and spunlaced nonwovens located in Chemille, France.
Fibertex Nonwovens has also looked to South Africa for growth. In January 2010, the company announced it had started a state-of-the-art needlepunch line in South Africa. The facility makes and markets needlepunch nonwovens, primarily geotextiles, for road construction as well as products for the growing South African automotives industry.
Since the site’s establishment, most of Fibertex’s efforts there have focused on building production and positioning the company in the marketplace. Demand has been ramping up, however, more recently, driven by a large number of infrastructure projects in South Africa and its neighboring countries. Also helping to boost his operation is the acquisition of the distributor Geotextil Africa in late 2012. This move is expected to boost both revenue and earnings in 2013.
In addition to operations in France and South America, Fibertex Nonwovens operates a sizable needlepunch center at its headquarters in Aalaborg, Denmark. In recent years, efforts have focused on modernizing these operations to increase both productivity and efficiency. The company also operates a Czech Republic operation, which was acquired from Vigona in 2008.
Key markets for Fibertex Nonwovens include automotives, construction, industrial, filtration and wipes. Throughout all of these markets, Fibertex has been focusing on increasing its earnings potential and improving the ratio between the price it pays for raw materials and the price it fetches for its products.
“We truly have improved out place in the European market,” Bech says. “We are improving our earnings and we are passing through out raw material prices. We have a strong portfolio of products and we are working on growing sales in our more value added areas.”
www.fibertex.com
2012 Nonwovens Sales: $161 million
Key Personnel: Jorgen Bech Madsen, CEO, Henrik Kjeldsen, CCO, Lars Bertelsen, COO, Henrik Eigenbrod, CFO, Keld Lauridsen, group R&D manager, Bjarne Knudsen, CEO, Czech Republic
Plants: Denmark, the Czech Republic, France and South Africa
Processes: Needlepunch, spunlace, impregnation, coating and a range of finishing technologies
Major Markets: Acoustics, automotive, bedding, composites, construction, filtration, flooring, furniture, geotextiles, home and garden, horticulture
Sales at Fibertex Nonwovens received a boost in 2012 due to the acquisition of French Tharreau Industries in May 2011 as well as a generally higher level of business activity across all of its business for much of the year.
Including the Tharreau business, which is now known as Fibertex Nonwovens S.A., Fibertex, based in Aalborg, Denmark, has operations in Denmark, the Czech Republic, France and South Africa and serves industrial markets like automotives, construction, filtration and geotextiles. The company was created in 2011 when it split from sister company, Fibertex Personal Care.
In the past couple of years, Fibertex Nonwovens has focused on broadening its global footprint. “We try to go where we see the right opportunities for growth,” says Jorgen Bech Madsen, CEO. “And from there we adapt to competitive market situations.”
The acquisition of Tharreau Industries reportedly generated substantial synergies for both companies and has helped accelerate Fibertex Nonwovens’ strategy of becoming a European market leader. The operation contains needlepunch and spunlaced nonwovens located in Chemille, France.
Fibertex Nonwovens has also looked to South Africa for growth. In January 2010, the company announced it had started a state-of-the-art needlepunch line in South Africa. The facility makes and markets needlepunch nonwovens, primarily geotextiles, for road construction as well as products for the growing South African automotives industry.
Since the site’s establishment, most of Fibertex’s efforts there have focused on building production and positioning the company in the marketplace. Demand has been ramping up, however, more recently, driven by a large number of infrastructure projects in South Africa and its neighboring countries. Also helping to boost his operation is the acquisition of the distributor Geotextil Africa in late 2012. This move is expected to boost both revenue and earnings in 2013.
In addition to operations in France and South America, Fibertex Nonwovens operates a sizable needlepunch center at its headquarters in Aalaborg, Denmark. In recent years, efforts have focused on modernizing these operations to increase both productivity and efficiency. The company also operates a Czech Republic operation, which was acquired from Vigona in 2008.
Key markets for Fibertex Nonwovens include automotives, construction, industrial, filtration and wipes. Throughout all of these markets, Fibertex has been focusing on increasing its earnings potential and improving the ratio between the price it pays for raw materials and the price it fetches for its products.
“We truly have improved out place in the European market,” Bech says. “We are improving our earnings and we are passing through out raw material prices. We have a strong portfolio of products and we are working on growing sales in our more value added areas.”
Aalborg, Denmark
www.fibertexpersonalcare.com
2012 Nonwovens Sales: $235 million
Key Personnel: Mikael Staal Axelsen, group CEO; Mette Due Sogaard, CTO, Denmark; Anders Sogaard, COO, Denmark; Kenneth Mynster Dolmer, CCO, Denmark; Claus Svanberg, CFO, Denmark; Peter Andersen, CEO, Malaysia; Peter Bach Sigvardt, COO, Malaysia; Ong Soo Fen, CFO, Malaysia
Plants: Three lines in Denmark, three in Malaysia
Processes: Spunbond/spunmelt
Brands: Comfort, Elite, Dual
Major Markets: Hygiene—applications within baby diapers, feminine care and adult incontinence
Expansion in Asia continues to be a focus for Fibertex Personal Care. Not only is the Aalborg, Denmark company increasing its Malaysian capacity by 30%, it has established sales offices in India and Japan to strengthen its presence in these markets. With production sites in Malaysia and Denmark, the company, which split from its technical business in early 2011 to become a company solely focused on hygiene, sells its products all over the world with a main emphasis on Europe and Asia.
A major maker of spunmelt nonwovens primarily for hygiene applications, Fibertex Personal Care operates six production lines, three in Denmark and three in Malaysia. In sync with its production footprint, Fibertex Personal Care reports that the bulk of its sales are to major international producers of diapers and other hygiene products located in Europe and Asia.
In spring 2012, the company announced it would add a fourth line in Malaysia, increasing that site’s capacity by 30% to 70,000 tons by the end of 2013. This $50 million investment comes not long after the completion of a third line, which added 22,000 tons of capacity to the site.
“We have been experiencing great growth in Asia, that is for sure,” says group CEO Mikael Staal Axelsen. “It’s not just in Malaysia. We are seeing success in Japan, Australia, India, the whole region.”
Fibertex Personal Care began production in Malaysia in 2003 and soon added line number two in 2005. These investments have been credited with driving the company’s sales forward in recent years. To date, the company has no plans to add a production facility elsewhere in Asia, saying it is successful enough targeting the entire region for the Malaysian site.
“We have no plan to build elsewhere in Asia,” Axelsen says. “Of course, there is a new line coming in India from Global Nonwovens and everyone is looking there but China is crowded with companies and that is why we are not there.”
Overall, Fibertex Personal Care’s sales increased 11% to reach DKK1.459 billion ($254 million) in 2012 and growth was largely attributed to the full utilization of the third Malaysian line. The company expects sales to continue this upward trajectory in 2013 and receive a significant boost once line number four in Malaysia comes onstream in late 2013, boosting that site’s capacity by 30%.
Fibertex Personal Care began making spunmelt nonwovens in 1997 when it was still known simply as Fibertex and also contained an industrial-centered division. In 2010, Fibertex separated its hygiene-related assets from its industrial side, creating two distinct companies, Fibertex Personal Care and Fibertex Nonwovens. Both companies continue to be owned by Schouw & Co.
Since entering the spunmelt market, Fibertex has attributed its impressive level of growth to maintaining strong professional relationships with its customers and this strategy has resulted in a number of awards and distinctions from key customers. The most recent of these were a Supplier of the Year award from Ontex, the Belgium private label hygiene products maker, which was awarded in June, and the Procter & Gamble External Business Partner award in September 2012.
Looking ahead, Fibertex will continue to focus on maintaining earnings by optimizing production lines, maintaining high operational efficiency and ensuring high capacity utilization.
“The focus will be on growing our sales to sell the new capacity in Malaysia,” Axelsen says. “For sure, we will continue to grow.”
www.fibertexpersonalcare.com
2012 Nonwovens Sales: $235 million
Key Personnel: Mikael Staal Axelsen, group CEO; Mette Due Sogaard, CTO, Denmark; Anders Sogaard, COO, Denmark; Kenneth Mynster Dolmer, CCO, Denmark; Claus Svanberg, CFO, Denmark; Peter Andersen, CEO, Malaysia; Peter Bach Sigvardt, COO, Malaysia; Ong Soo Fen, CFO, Malaysia
Plants: Three lines in Denmark, three in Malaysia
Processes: Spunbond/spunmelt
Brands: Comfort, Elite, Dual
Major Markets: Hygiene—applications within baby diapers, feminine care and adult incontinence
Expansion in Asia continues to be a focus for Fibertex Personal Care. Not only is the Aalborg, Denmark company increasing its Malaysian capacity by 30%, it has established sales offices in India and Japan to strengthen its presence in these markets. With production sites in Malaysia and Denmark, the company, which split from its technical business in early 2011 to become a company solely focused on hygiene, sells its products all over the world with a main emphasis on Europe and Asia.
A major maker of spunmelt nonwovens primarily for hygiene applications, Fibertex Personal Care operates six production lines, three in Denmark and three in Malaysia. In sync with its production footprint, Fibertex Personal Care reports that the bulk of its sales are to major international producers of diapers and other hygiene products located in Europe and Asia.
In spring 2012, the company announced it would add a fourth line in Malaysia, increasing that site’s capacity by 30% to 70,000 tons by the end of 2013. This $50 million investment comes not long after the completion of a third line, which added 22,000 tons of capacity to the site.
“We have been experiencing great growth in Asia, that is for sure,” says group CEO Mikael Staal Axelsen. “It’s not just in Malaysia. We are seeing success in Japan, Australia, India, the whole region.”
Fibertex Personal Care began production in Malaysia in 2003 and soon added line number two in 2005. These investments have been credited with driving the company’s sales forward in recent years. To date, the company has no plans to add a production facility elsewhere in Asia, saying it is successful enough targeting the entire region for the Malaysian site.
“We have no plan to build elsewhere in Asia,” Axelsen says. “Of course, there is a new line coming in India from Global Nonwovens and everyone is looking there but China is crowded with companies and that is why we are not there.”
Overall, Fibertex Personal Care’s sales increased 11% to reach DKK1.459 billion ($254 million) in 2012 and growth was largely attributed to the full utilization of the third Malaysian line. The company expects sales to continue this upward trajectory in 2013 and receive a significant boost once line number four in Malaysia comes onstream in late 2013, boosting that site’s capacity by 30%.
Fibertex Personal Care began making spunmelt nonwovens in 1997 when it was still known simply as Fibertex and also contained an industrial-centered division. In 2010, Fibertex separated its hygiene-related assets from its industrial side, creating two distinct companies, Fibertex Personal Care and Fibertex Nonwovens. Both companies continue to be owned by Schouw & Co.
Since entering the spunmelt market, Fibertex has attributed its impressive level of growth to maintaining strong professional relationships with its customers and this strategy has resulted in a number of awards and distinctions from key customers. The most recent of these were a Supplier of the Year award from Ontex, the Belgium private label hygiene products maker, which was awarded in June, and the Procter & Gamble External Business Partner award in September 2012.
Looking ahead, Fibertex will continue to focus on maintaining earnings by optimizing production lines, maintaining high operational efficiency and ensuring high capacity utilization.
“The focus will be on growing our sales to sell the new capacity in Malaysia,” Axelsen says. “For sure, we will continue to grow.”
Aalborg, Denmark
www.fibertex.com
2013 Nonwovens Sales: $166 million
Key Personnel
Jorgen Bech Madsen, CEO; Henrik Kjeldsen CCO; Lars Bertelsen, COO; Henrik Eigenbrod, CFO; Keld Lauridsen, Group R&D Manager; Bjarne Knudsen, CEO, Czech Republic
Plants
Denmark, Czech Republic, France, South Africa
Processes
Needlepunch, spunlace, impregnation, coating and a range of finishing technologies
Major Markets
Acoustics, automotive, bedding, building industry, composites, construction, filtration, flooring, furniture, geotextiles, home and garden, horticulture, wipes
Describing the first half of 2013 as slow with a hard European winter impacting construction and a weak automotives market, executives at Fibertex Nonwovens reported a reverse in conditions during the second half of 2013 and into 2014. For the full year, sales increased 3.5% to DKK 901 million ($166 mn) while earnings improved from $5 million to DKK$6.6 million (~$1.2mn) due to improvements in its core business and a sharper focus on customized value-added products.
“There is a combination of factors influencing our growth,” says CEO Jorgen Bech Madsen. “Partly it was better demand, but we have improved our competitive position with new products and advanced solutions.”
Also impacting the company’s performance was a company-wide improvement program that modernized and expanded production platforms, giving Fibertex Nonwovens competitive strength. This five-year investment plan covers improvements at all of Fibertex Nonwovens’ global sites and could even feature some yet-to-be-announced major enhancements, according to executives.
With its focus on five core markets—automotives, construction, industrial, filtration and wipes—Fibertex Nonwovens has plants in Denmark, the Czech Republic, France and South Africa. It was created in 2011 when it split from its sister company, Fibertex Personal Care.
In recent years, the company has relied on acquisition and investment for growth. This strategy seems to have worked. The company has more than doubled its sales (from $73 million) since 2009 and expects sales to continue their upward trend.
In acquisition news, Fibertex Nonwovens purchased Tharreau Industries in May 2011. This French manufacturer, now known as Fibertex Nonwovens S.A.S., generated substantial synergies for both companies and has helped accelerate the company’s strategy of becoming a European market leader. The operation contains needlepunch and spunlace operations in Chemillé, France. In 2013, sales from this French facility represented nearly 50% of sales ($72 million).
On the investment side, Fibertex Nonwovens established a South African facility in 2010. Featuring a state-of-the-art needlepunch line, this facility mainly targets the geotextiles market as well as the growing automotives market.
Fibertex Nonwovens spent its first three years in South Africa establishing a presence in the country, and in early 2013 it acquired a stake in distributor Geotextile Africa to improve its market positions. Executives expect growth in South Africa to come on the heels of a large number of infrastructure projects both in neighboring countries and locally.
“South Africa has seen nice development, particularly in late 2013,” Madsen says. “We have really focused on developing our business outside of Europe.”
In addition to global expansion, Fibertex Nonwovens continues to expand itself into new technical markets. “We are in many niche markets, like acoustics and low and high end filtration. We are also increasing our focus on what we call advanced nonwovens,” Madsen adds.
www.fibertex.com
2013 Nonwovens Sales: $166 million
Key Personnel
Jorgen Bech Madsen, CEO; Henrik Kjeldsen CCO; Lars Bertelsen, COO; Henrik Eigenbrod, CFO; Keld Lauridsen, Group R&D Manager; Bjarne Knudsen, CEO, Czech Republic
Plants
Denmark, Czech Republic, France, South Africa
Processes
Needlepunch, spunlace, impregnation, coating and a range of finishing technologies
Major Markets
Acoustics, automotive, bedding, building industry, composites, construction, filtration, flooring, furniture, geotextiles, home and garden, horticulture, wipes
Describing the first half of 2013 as slow with a hard European winter impacting construction and a weak automotives market, executives at Fibertex Nonwovens reported a reverse in conditions during the second half of 2013 and into 2014. For the full year, sales increased 3.5% to DKK 901 million ($166 mn) while earnings improved from $5 million to DKK$6.6 million (~$1.2mn) due to improvements in its core business and a sharper focus on customized value-added products.
“There is a combination of factors influencing our growth,” says CEO Jorgen Bech Madsen. “Partly it was better demand, but we have improved our competitive position with new products and advanced solutions.”
Also impacting the company’s performance was a company-wide improvement program that modernized and expanded production platforms, giving Fibertex Nonwovens competitive strength. This five-year investment plan covers improvements at all of Fibertex Nonwovens’ global sites and could even feature some yet-to-be-announced major enhancements, according to executives.
With its focus on five core markets—automotives, construction, industrial, filtration and wipes—Fibertex Nonwovens has plants in Denmark, the Czech Republic, France and South Africa. It was created in 2011 when it split from its sister company, Fibertex Personal Care.
In recent years, the company has relied on acquisition and investment for growth. This strategy seems to have worked. The company has more than doubled its sales (from $73 million) since 2009 and expects sales to continue their upward trend.
In acquisition news, Fibertex Nonwovens purchased Tharreau Industries in May 2011. This French manufacturer, now known as Fibertex Nonwovens S.A.S., generated substantial synergies for both companies and has helped accelerate the company’s strategy of becoming a European market leader. The operation contains needlepunch and spunlace operations in Chemillé, France. In 2013, sales from this French facility represented nearly 50% of sales ($72 million).
On the investment side, Fibertex Nonwovens established a South African facility in 2010. Featuring a state-of-the-art needlepunch line, this facility mainly targets the geotextiles market as well as the growing automotives market.
Fibertex Nonwovens spent its first three years in South Africa establishing a presence in the country, and in early 2013 it acquired a stake in distributor Geotextile Africa to improve its market positions. Executives expect growth in South Africa to come on the heels of a large number of infrastructure projects both in neighboring countries and locally.
“South Africa has seen nice development, particularly in late 2013,” Madsen says. “We have really focused on developing our business outside of Europe.”
In addition to global expansion, Fibertex Nonwovens continues to expand itself into new technical markets. “We are in many niche markets, like acoustics and low and high end filtration. We are also increasing our focus on what we call advanced nonwovens,” Madsen adds.
Aalborg, Denmark
www.fibertexpersonalcare.com
2013 Nonwovens Sales: $263 million
Key Personnel
Mikael Staal Axelsen, group CEO; Peter Andersen, CEO, Malaysia; Claus Svanberg, group CFO; Mette Due Sogaard, group quality and sustainability director; Kenneth Mynster Dolmer, group supply chain director; Anders Sogaard, operations director, Denmark; Peter Bach Sigvardt, operations director, Malaysia; Ong Soo Fen, CFO, Malaysia
Plants
Three lines in Denmark, four in Malaysia
Processes
Spunbond/spunmelt
Brands
Comfort, Elite, Dual
Major Markets
Hygiene—applications within baby diapers, feminine care and adult incontinence
Sales for Aalborg, Denmark-based Fibertex Personal Care continued to grow last year, increasing 7% to DKK1,554 million, or $263 million, driven largely by the successful introduction of its third Malaysian line but also by increased volumes in Denmark.
This growth is expected to continue, particularly out of Asia, where its fourth line came on stream at its Malaysian facility at the end of 2013. This new line, representing a $50 million investment, increased the company’s Malaysian capacity 30% to 70,000 tons. Coming not long after the completion of the site’s third line, which added 22,000 tons to the site, this ambitious investment is the result of strong growth in the Asian hygiene market, which is growing more than 10% per year, according to group CEO Mikael Staal Axelsen.
“The four major Asian markets are Japan, China, ASEAN and India and they are growing across the board,” he says. “In addition to its Malaysian operation, we have also added country managers for Japan and India.”
According to Axelsen, pricing in Asia has been challenged due to overcapacity brought on by overinvestment in China that was made in anticipation of growth that has not been as fast as expected. Therefore, a lot of Chinese-made nonwovens are being sold in India. For this reason, Fibertex Personal Care has ruled out investing in India for now and will instead serve the market from its Malaysian base, which was established in 2002.
“Investing in Malaysia has been a good decision for us,” Axelsen says. “We have been able to grow our Asian business. We have a good workforce there. It has been good.”
As its Asian business has been in investment mode, its European operation, located in Aalborg, Denmark, continues to be a success. The company has not added to the site, since its third line was started in late 2006, but it reports all three of the lines in Aalborg are full and the European market is performing well.
“Europe is pretty much in balance as long as nobody puts in a new line,” Axelsen says.
A company 100% focused on the hygiene market, Fibertex Personal Care is now focusing its efforts on meeting demand for softness in the personal care market. “It can be hard to down guage and go to lower weights without sacrificing softness but bulky soft materials being developed on our latest line have given us the ability to meet these demands,” Axelsen says. “They are just now starting to take off.”
Fibertex Personal Care began making spunmelt nonwovens in 1997 when it was still known simply as Fibertex and also contained an industrial-centered division.
In 2010, Fibertex separated its hygiene-related assets from its industrial side, creating two distinct companies, Fibertex Personal Care and Fibertex Nonwovens. Both companies continue to be owned by Schouw & Co.
Since entering the spunmelt market, Fibertex Personal Care has attributed its impressive level of growth to maintaining strong professional relationships with its customers and this strategy has resulted in a number of awards and distinctions from key customers including supplier of the year awards from both Procter & Gamble and Ontex in 2013.
“Being 100% involved in hygiene was a choice we made and it has been successful for us to have a narrow focus,” Axelsen says of his company’s progress. “A lot of companies are looking for diversification but that is not our strategy.”
www.fibertexpersonalcare.com
2013 Nonwovens Sales: $263 million
Key Personnel
Mikael Staal Axelsen, group CEO; Peter Andersen, CEO, Malaysia; Claus Svanberg, group CFO; Mette Due Sogaard, group quality and sustainability director; Kenneth Mynster Dolmer, group supply chain director; Anders Sogaard, operations director, Denmark; Peter Bach Sigvardt, operations director, Malaysia; Ong Soo Fen, CFO, Malaysia
Plants
Three lines in Denmark, four in Malaysia
Processes
Spunbond/spunmelt
Brands
Comfort, Elite, Dual
Major Markets
Hygiene—applications within baby diapers, feminine care and adult incontinence
Sales for Aalborg, Denmark-based Fibertex Personal Care continued to grow last year, increasing 7% to DKK1,554 million, or $263 million, driven largely by the successful introduction of its third Malaysian line but also by increased volumes in Denmark.
This growth is expected to continue, particularly out of Asia, where its fourth line came on stream at its Malaysian facility at the end of 2013. This new line, representing a $50 million investment, increased the company’s Malaysian capacity 30% to 70,000 tons. Coming not long after the completion of the site’s third line, which added 22,000 tons to the site, this ambitious investment is the result of strong growth in the Asian hygiene market, which is growing more than 10% per year, according to group CEO Mikael Staal Axelsen.
“The four major Asian markets are Japan, China, ASEAN and India and they are growing across the board,” he says. “In addition to its Malaysian operation, we have also added country managers for Japan and India.”
According to Axelsen, pricing in Asia has been challenged due to overcapacity brought on by overinvestment in China that was made in anticipation of growth that has not been as fast as expected. Therefore, a lot of Chinese-made nonwovens are being sold in India. For this reason, Fibertex Personal Care has ruled out investing in India for now and will instead serve the market from its Malaysian base, which was established in 2002.
“Investing in Malaysia has been a good decision for us,” Axelsen says. “We have been able to grow our Asian business. We have a good workforce there. It has been good.”
As its Asian business has been in investment mode, its European operation, located in Aalborg, Denmark, continues to be a success. The company has not added to the site, since its third line was started in late 2006, but it reports all three of the lines in Aalborg are full and the European market is performing well.
“Europe is pretty much in balance as long as nobody puts in a new line,” Axelsen says.
A company 100% focused on the hygiene market, Fibertex Personal Care is now focusing its efforts on meeting demand for softness in the personal care market. “It can be hard to down guage and go to lower weights without sacrificing softness but bulky soft materials being developed on our latest line have given us the ability to meet these demands,” Axelsen says. “They are just now starting to take off.”
Fibertex Personal Care began making spunmelt nonwovens in 1997 when it was still known simply as Fibertex and also contained an industrial-centered division.
In 2010, Fibertex separated its hygiene-related assets from its industrial side, creating two distinct companies, Fibertex Personal Care and Fibertex Nonwovens. Both companies continue to be owned by Schouw & Co.
Since entering the spunmelt market, Fibertex Personal Care has attributed its impressive level of growth to maintaining strong professional relationships with its customers and this strategy has resulted in a number of awards and distinctions from key customers including supplier of the year awards from both Procter & Gamble and Ontex in 2013.
“Being 100% involved in hygiene was a choice we made and it has been successful for us to have a narrow focus,” Axelsen says of his company’s progress. “A lot of companies are looking for diversification but that is not our strategy.”
Fibertex Nonwovens
Aalborg, Denmark
www.fibertex.com
2014 Nonwovens sales: $171 million
Key Personnel
Jorgen Bech Madsen, CEO; Henrik Kjeldsen CCO; Lars Bertelsen, COO; Henrik Eigenbrod, CFO; Keld Lauridsen, Group R&D Manager; Bjarne Knudsen, CEO, Czech Republic
Plants
Denmark, Czech Republic, France, South Africa
Processes
Needlepunch, spunlace, impregnation, coating and a range of finishing technologies
Major Markets
Acoustics, automotive, bedding, building industry, composites, construction, filtration, flooring, furniture, geotextiles, home and garden, horticulture, wipes
Reporting a 12% increase in sales as well as a considerable jump in profits is Aalborg, Denmark-based Fibertex Nonwovens. The maker of industrial nonwovens has also expanded its manufacturing scope into the U.S. market through the October 2014 acquisition of Non Wovens Solutions, an Illinois-based needlepunch manufacturer. With about $16 million in annual sales, Non Woven Solutions makes and sells nonwovens in various product areas in the U.S. market, where Fibertex is seeing more opportunities.
“Establishing a presence in the U.S. will give Fibertex Nonwovens unique opportunities to grow its sales of value-added products for the composites and automotive industries in particular, but the acquisition is also expected to have a positive effect on sales in other product areas,” says Jorgen Bech Madsen, CEO.
Fibertex Nonwovens, which separated from sister company Fibertex Personal Care a few years ago, makes nonwovens for automotives, construction, industrial, filtration and wet wipes markets. In recent years, the company has expanded in Western Europe, Eastern Europe and South Africa as part of its strategy of becoming a world leader in technical nonwovens.
In Western Europe, Fibertex Nonwovens has plants in Denmark and France. The French business was purchased from Tharreau Industries in May 2011 and is now known as Fibertex Nonwovens S.A.S. This acquisition generated substantial synergies for both companies and has helped accelerate the company’s strategy of becoming a European market leader. The operation contains a needlepunch and spunlace operation in Chemillé, France.
Meanwhile, in the Czech Republic, at a business that has been Fibertex-owned since 2005, the plant will have a new state-of-the-art needlepunch line in place by the end of 2015. This investment will help fuel growth in core markets across Europe and into new areas, according to Madsen.
In 2010, Fibertex Nonwovens established a factory in South Africa in association with local business partners and the IFU. Sales from this factory, which mainly target geotextiles and automotives applications, have grown considerably over the years and in 2015 Fibertex acquired an additional 48.2% of the its shares and now controls a 74.2% stake in the company. Currently, a new fiber line and a new needlepunch line are being added to this site. Both investments will be complete during 2015.
Aalborg, Denmark
www.fibertex.com
2014 Nonwovens sales: $171 million
Key Personnel
Jorgen Bech Madsen, CEO; Henrik Kjeldsen CCO; Lars Bertelsen, COO; Henrik Eigenbrod, CFO; Keld Lauridsen, Group R&D Manager; Bjarne Knudsen, CEO, Czech Republic
Plants
Denmark, Czech Republic, France, South Africa
Processes
Needlepunch, spunlace, impregnation, coating and a range of finishing technologies
Major Markets
Acoustics, automotive, bedding, building industry, composites, construction, filtration, flooring, furniture, geotextiles, home and garden, horticulture, wipes
Reporting a 12% increase in sales as well as a considerable jump in profits is Aalborg, Denmark-based Fibertex Nonwovens. The maker of industrial nonwovens has also expanded its manufacturing scope into the U.S. market through the October 2014 acquisition of Non Wovens Solutions, an Illinois-based needlepunch manufacturer. With about $16 million in annual sales, Non Woven Solutions makes and sells nonwovens in various product areas in the U.S. market, where Fibertex is seeing more opportunities.
“Establishing a presence in the U.S. will give Fibertex Nonwovens unique opportunities to grow its sales of value-added products for the composites and automotive industries in particular, but the acquisition is also expected to have a positive effect on sales in other product areas,” says Jorgen Bech Madsen, CEO.
Fibertex Nonwovens, which separated from sister company Fibertex Personal Care a few years ago, makes nonwovens for automotives, construction, industrial, filtration and wet wipes markets. In recent years, the company has expanded in Western Europe, Eastern Europe and South Africa as part of its strategy of becoming a world leader in technical nonwovens.
In Western Europe, Fibertex Nonwovens has plants in Denmark and France. The French business was purchased from Tharreau Industries in May 2011 and is now known as Fibertex Nonwovens S.A.S. This acquisition generated substantial synergies for both companies and has helped accelerate the company’s strategy of becoming a European market leader. The operation contains a needlepunch and spunlace operation in Chemillé, France.
Meanwhile, in the Czech Republic, at a business that has been Fibertex-owned since 2005, the plant will have a new state-of-the-art needlepunch line in place by the end of 2015. This investment will help fuel growth in core markets across Europe and into new areas, according to Madsen.
In 2010, Fibertex Nonwovens established a factory in South Africa in association with local business partners and the IFU. Sales from this factory, which mainly target geotextiles and automotives applications, have grown considerably over the years and in 2015 Fibertex acquired an additional 48.2% of the its shares and now controls a 74.2% stake in the company. Currently, a new fiber line and a new needlepunch line are being added to this site. Both investments will be complete during 2015.
Fibertex Personal Care
Aalborg, Denmark
www.fibertexpersonalcare.com
2014 Nonwovens Sales: $293 million
Key Personnel
Mikael Staal Axelsen, group CEO; Peter Andersen, CEO, Malaysia; Claus Svanberg, group CFO; Mette Due Sogaard, group quality and sustainability director; Kenneth Mynster Dolmer, group supply chain director; Anders Sogaard, operations director, Denmark; Peter Bach Sigvardt, operations director, Malaysia; Ong Soo Fen, CFO, Malaysia
Plants
Three lines in Denmark, four in Malaysia
Processes
Spunbond/spunmelt
Brands
Comfort, Elite, Dual
Major Markets
Hygiene—applications within baby diapers, feminine care and adult incontinence
Reporting a strong 2014 was Fibertex Personal Care. The Aalborg, Denmark-based producer of spunmelt nonwovens for the global hygiene market, reported that its sales increased 15% to reach DKK 1.78 billion ($293 million) thanks largely to increased volumes of its Malaysian operation.
That operation’s fourth line came onstream in late 2013, adding 22,000 tons and helping to boost Fibertex Personal Care’s total sales. The company’s Malaysian capacity is now 70,000 tons.
CEO Mikael Staal Axelsen says that this ambitious investment schedule follows strength in the Asian market, which is growing at about 10% per year. “All of the markets are growing across the board,” he says. “We are particularly strong in Southeast Asia. Being in Malaysia has been a good strategy for us.”
In August, the company announced it would establish an Innowo Print facility near its Malaysian operation in response to growing demand for printed nonwovens in Asia. Fibertex Personal Care acquired the remaining 85% shares in Innowo Print, a nonwovens printing operation it helped found in 2007, in October 2014. According to Axelsen, the demand for printed nonwovens continues to grow and this business is targeting both internal and external demand.
“At Fibertex Personal Care, we mostly manufacture standardized products in very large volumes,” Axelsen says. “That makes it important for us to offer a uniformly high quality and provide excellent service to our customers. Direct printing on nonwovens is a field where we can differentiate from our competitors in the rest of the market and provide a service that complements our core product.”
Innowo Print operates two lines in Ilsenburg, Germany generating about DKK50 million ($8 million) in 2014. Although its first customer was Fibertex Peronal Care, it has built an independent customer portfolio and developed a brand recognized in the market. Fibertex Personal Care purchased Innowo only after its other two shareholders decided to sell.
In August, Fibertex Personal Care and Innowo Print received Kimberly-Clark’s Supplier of the Year award.
Back to Fibertex’s spunmelt operation, which also includes a three-line site in Aalborg, process optimization and innovation continue to be the top priority. “Our customers want products that can help them differentiate themselves and we are meeting this need as efficiently as possible,” Axelsen adds.
Aalborg, Denmark
www.fibertexpersonalcare.com
2014 Nonwovens Sales: $293 million
Key Personnel
Mikael Staal Axelsen, group CEO; Peter Andersen, CEO, Malaysia; Claus Svanberg, group CFO; Mette Due Sogaard, group quality and sustainability director; Kenneth Mynster Dolmer, group supply chain director; Anders Sogaard, operations director, Denmark; Peter Bach Sigvardt, operations director, Malaysia; Ong Soo Fen, CFO, Malaysia
Plants
Three lines in Denmark, four in Malaysia
Processes
Spunbond/spunmelt
Brands
Comfort, Elite, Dual
Major Markets
Hygiene—applications within baby diapers, feminine care and adult incontinence
Reporting a strong 2014 was Fibertex Personal Care. The Aalborg, Denmark-based producer of spunmelt nonwovens for the global hygiene market, reported that its sales increased 15% to reach DKK 1.78 billion ($293 million) thanks largely to increased volumes of its Malaysian operation.
That operation’s fourth line came onstream in late 2013, adding 22,000 tons and helping to boost Fibertex Personal Care’s total sales. The company’s Malaysian capacity is now 70,000 tons.
CEO Mikael Staal Axelsen says that this ambitious investment schedule follows strength in the Asian market, which is growing at about 10% per year. “All of the markets are growing across the board,” he says. “We are particularly strong in Southeast Asia. Being in Malaysia has been a good strategy for us.”
In August, the company announced it would establish an Innowo Print facility near its Malaysian operation in response to growing demand for printed nonwovens in Asia. Fibertex Personal Care acquired the remaining 85% shares in Innowo Print, a nonwovens printing operation it helped found in 2007, in October 2014. According to Axelsen, the demand for printed nonwovens continues to grow and this business is targeting both internal and external demand.
“At Fibertex Personal Care, we mostly manufacture standardized products in very large volumes,” Axelsen says. “That makes it important for us to offer a uniformly high quality and provide excellent service to our customers. Direct printing on nonwovens is a field where we can differentiate from our competitors in the rest of the market and provide a service that complements our core product.”
Innowo Print operates two lines in Ilsenburg, Germany generating about DKK50 million ($8 million) in 2014. Although its first customer was Fibertex Peronal Care, it has built an independent customer portfolio and developed a brand recognized in the market. Fibertex Personal Care purchased Innowo only after its other two shareholders decided to sell.
In August, Fibertex Personal Care and Innowo Print received Kimberly-Clark’s Supplier of the Year award.
Back to Fibertex’s spunmelt operation, which also includes a three-line site in Aalborg, process optimization and innovation continue to be the top priority. “Our customers want products that can help them differentiate themselves and we are meeting this need as efficiently as possible,” Axelsen adds.
Aalborg, Denmark
www.fibertex.com
2015 Nonwovens Sales: $182 million
Key Personnel
Jorgen Bech Madsen, CEO; Mona Nielsen, CCO; Lars Bertelsen, COO; Henrik Eigenbrod, CFO; Keld Lauridsen, Group R&D Director; Bjarne Knudsen, CEO, Czech Republic
Plants
Denmark, Czech Republic, France, South Africa, U.S., Turkey
Processes
Needlepunch, spunlace, impregnations, coating and a range of finishing technologies
Major Markets
Acoustics, automotive, bedding, building industry, composites, concrete, construction, filtration, flooring, furniture, geotextiles, home and garden horticulture, medico, wipes
Expansion into new markets and geographies continues to be a top priority for Fibertex Nonwovens. The Aalborg, Denmark manufacturer of nonwovens for a range of technical markets has manufacturing sites in Denmark, France, Czech Republic, South Africa, Turkey and the U.S.
“Fibertex Nonwovens is following a global expansion strategy and has been successful in its efforts to expand into new markets and geographies,” says CEO Jorgen Bech Madsen. “Our acquisitions have been part of our strategic plan to become a world leader in technical nonwovens. Today we have a strong platform for further expansion.”
In 2015, sales increased an impressive 16% to reach $182 million, thanks to increased sales to the automotives market and other specialized markets. Also boosting business in 2015 was the effects of Fibertex Nonwovens U.S.—formerly known as Non Wovens Solutions, an Illinois-based needlepunch manufacturer, acquired in October 2014. With about $16 million in sales, this business has allowed Fibertex Nonwovens to grow sales of value-added products for the composite, filtration and automotives industries.
“The platform that we have now in North America is state-of-the-art and we are happy to see the high quality products being produced at this facility,” Madsen says. “In addition to the businesses that we earlier were supplying out of Europe, we now also have a strong platform for producing for the wipes, medico, and filtration market as well as for other technical applications in North America.”
Prior to the acquisition, Fibertex Nonwovens was largely serving its North American customers out of Europe, but as the business grew, an active presence was required in the market.
In October 2015, Fibertex Nonwovens gained access to another new market thanks to the acquisition of Ribatek, a Turkish supplier of spunlace nonwovens for technical wipes, filtration, industrial and automotives. Prior to the acquisition, Fibertex Nonwovens already had spunlace technology in France at a facility acquired from Tharreau Industries in 2011.
“We were experiencing a growing demand for new textiles based on spunlacing technology. The strategic rationale behind the Ribatek acquisition was to increase our total capacity of specialized products within spunlacing and product mix as well as to ensure a strong technology platform,” Madsen says. “Ribatek was the perfect match due to Ribatek’s high quality, strategic fit and strategically important geographical location.”
Capital investment is also an important part of Fibertex Nonwovens’ growth strategy. In South Africa, it has added a second state-of-the-art needlepunched production line as well as additional land and buildings. This business, established in 2010, has experienced significantly increased demand not only for products for the growing South African automotive industry and infrastructure programs, but also for industrial applications, Madsen says.
“The capacity expansion is in line with the strategies and growth objectives of the company, including the expansion into Africa,” he says. “The increased investment in state-of-the-art production capacity not only increases workforce in an area with high unemployment but also proves that South Africa is an attractive location for world class production.”
Meanwhile, in the Czech Republic Fibertex Nonwovens has added a new needlepunch line targeting the automotives industry, and in France and Denmark lines are being upgraded to expand their technology offerings.
www.fibertex.com
2015 Nonwovens Sales: $182 million
Key Personnel
Jorgen Bech Madsen, CEO; Mona Nielsen, CCO; Lars Bertelsen, COO; Henrik Eigenbrod, CFO; Keld Lauridsen, Group R&D Director; Bjarne Knudsen, CEO, Czech Republic
Plants
Denmark, Czech Republic, France, South Africa, U.S., Turkey
Processes
Needlepunch, spunlace, impregnations, coating and a range of finishing technologies
Major Markets
Acoustics, automotive, bedding, building industry, composites, concrete, construction, filtration, flooring, furniture, geotextiles, home and garden horticulture, medico, wipes
Expansion into new markets and geographies continues to be a top priority for Fibertex Nonwovens. The Aalborg, Denmark manufacturer of nonwovens for a range of technical markets has manufacturing sites in Denmark, France, Czech Republic, South Africa, Turkey and the U.S.
“Fibertex Nonwovens is following a global expansion strategy and has been successful in its efforts to expand into new markets and geographies,” says CEO Jorgen Bech Madsen. “Our acquisitions have been part of our strategic plan to become a world leader in technical nonwovens. Today we have a strong platform for further expansion.”
In 2015, sales increased an impressive 16% to reach $182 million, thanks to increased sales to the automotives market and other specialized markets. Also boosting business in 2015 was the effects of Fibertex Nonwovens U.S.—formerly known as Non Wovens Solutions, an Illinois-based needlepunch manufacturer, acquired in October 2014. With about $16 million in sales, this business has allowed Fibertex Nonwovens to grow sales of value-added products for the composite, filtration and automotives industries.
“The platform that we have now in North America is state-of-the-art and we are happy to see the high quality products being produced at this facility,” Madsen says. “In addition to the businesses that we earlier were supplying out of Europe, we now also have a strong platform for producing for the wipes, medico, and filtration market as well as for other technical applications in North America.”
Prior to the acquisition, Fibertex Nonwovens was largely serving its North American customers out of Europe, but as the business grew, an active presence was required in the market.
In October 2015, Fibertex Nonwovens gained access to another new market thanks to the acquisition of Ribatek, a Turkish supplier of spunlace nonwovens for technical wipes, filtration, industrial and automotives. Prior to the acquisition, Fibertex Nonwovens already had spunlace technology in France at a facility acquired from Tharreau Industries in 2011.
“We were experiencing a growing demand for new textiles based on spunlacing technology. The strategic rationale behind the Ribatek acquisition was to increase our total capacity of specialized products within spunlacing and product mix as well as to ensure a strong technology platform,” Madsen says. “Ribatek was the perfect match due to Ribatek’s high quality, strategic fit and strategically important geographical location.”
Capital investment is also an important part of Fibertex Nonwovens’ growth strategy. In South Africa, it has added a second state-of-the-art needlepunched production line as well as additional land and buildings. This business, established in 2010, has experienced significantly increased demand not only for products for the growing South African automotive industry and infrastructure programs, but also for industrial applications, Madsen says.
“The capacity expansion is in line with the strategies and growth objectives of the company, including the expansion into Africa,” he says. “The increased investment in state-of-the-art production capacity not only increases workforce in an area with high unemployment but also proves that South Africa is an attractive location for world class production.”
Meanwhile, in the Czech Republic Fibertex Nonwovens has added a new needlepunch line targeting the automotives industry, and in France and Denmark lines are being upgraded to expand their technology offerings.
Aalborg, Denmark
www.fibertexpersonalcare.com
2015 Nonwovens Sales: $268 million
Key Personnel
Mikael Staal Axelsen, group CEO; Peter Andersen, CEO, Malaysia; Claus Svanberg, group CFO; Mette Due Sogaard, group quality and sustainability director; Peter Reis, group supply chain director; Anders Sogaard, operations director, Denmark; Jesper Pedersen, operations director, Malaysia; Ong Soo Fen, CFO, Malaysia
Plants
Denmark, Malaysia, Germany
Processes
Spunbond/spunmelt, Print
Brands
Comfort, Elite, Dual
Major Markets
Hygiene—baby diapers, feminine care, adult incontinence
Asian expansion continues for Denmark-based Fibertex Personal Care. The manufacturer of spunbond and spunmelt nonwovens for hygiene applications announced in January it would add a fifth line to its Malaysian operation to serve the growing Asian hygiene market. The new line will bring the company’s Malaysian capacity to about 90,000 tons. Fibertex Personal Care established this operation in 2002 and is currently the largest non-Japanese supplier of nonwovens to Japan.
According to executives, there are clear signs that the timing of investment is Asia is right. While consumption of hygiene products in the west only shows a moderate increase of 1-2% per year, it is as high as 10% per year in Asia thanks to a growing number of people in China, India and Southeast Asia earning an income that allows them to increase their focus on personal hygiene.
Fibertex’s latest Malaysian line will be housed in a new site about 25 kilometers south of the existing plant. This plant will have room to ultimately accommodate four or five lines, meaning that future expansion is already being considered.
“At the new site we will have even more focus on value-added products and the improvement of existing products,” says CEO Mikael Staal Axelsen. “The consumers and thereby the industry require hygiene products that are lighter, softer and with finer structures, and we have reached an advanced stage in the processing improvement race which becomes more and more predominant in our business.”
The new site is expected to be operational by mid-2017. Fibertex’s most recent Malaysian investment, line number four, came onstream in 2013, adding 22,000 tons to its global output.
Also in Malaysia, Fibertex Personal Care is in the process of adding direct-printing nonwovens capabilities to the site through its Innowo Print subsidiary. Fibertex Personal Care acquired full ownership of Innowo Print, a company it helped found in 2007, in late 2014, and announced its intention to expand its operation into Malaysia last year. While Fibertex Personal Care is one of Innowo’s customers, the company does provide direct printing services for a number of other companies. In addition to the Malaysian investment, Innowo is beefing up its German operation by adding a fourth line to the site.
Back to the nonwovens business, Fibertex Personal Care continues to operate three lines capable of making about 50,000 tons of nonwovens per year at its Aalborg, Denmark headquarters. While the company has chosen not to invest in a new European line, instead focusing on Asian growth, it is in the process of upgrading one of the site’s lines to allow it to make softer products.
www.fibertexpersonalcare.com
2015 Nonwovens Sales: $268 million
Key Personnel
Mikael Staal Axelsen, group CEO; Peter Andersen, CEO, Malaysia; Claus Svanberg, group CFO; Mette Due Sogaard, group quality and sustainability director; Peter Reis, group supply chain director; Anders Sogaard, operations director, Denmark; Jesper Pedersen, operations director, Malaysia; Ong Soo Fen, CFO, Malaysia
Plants
Denmark, Malaysia, Germany
Processes
Spunbond/spunmelt, Print
Brands
Comfort, Elite, Dual
Major Markets
Hygiene—baby diapers, feminine care, adult incontinence
Asian expansion continues for Denmark-based Fibertex Personal Care. The manufacturer of spunbond and spunmelt nonwovens for hygiene applications announced in January it would add a fifth line to its Malaysian operation to serve the growing Asian hygiene market. The new line will bring the company’s Malaysian capacity to about 90,000 tons. Fibertex Personal Care established this operation in 2002 and is currently the largest non-Japanese supplier of nonwovens to Japan.
According to executives, there are clear signs that the timing of investment is Asia is right. While consumption of hygiene products in the west only shows a moderate increase of 1-2% per year, it is as high as 10% per year in Asia thanks to a growing number of people in China, India and Southeast Asia earning an income that allows them to increase their focus on personal hygiene.
Fibertex’s latest Malaysian line will be housed in a new site about 25 kilometers south of the existing plant. This plant will have room to ultimately accommodate four or five lines, meaning that future expansion is already being considered.
“At the new site we will have even more focus on value-added products and the improvement of existing products,” says CEO Mikael Staal Axelsen. “The consumers and thereby the industry require hygiene products that are lighter, softer and with finer structures, and we have reached an advanced stage in the processing improvement race which becomes more and more predominant in our business.”
The new site is expected to be operational by mid-2017. Fibertex’s most recent Malaysian investment, line number four, came onstream in 2013, adding 22,000 tons to its global output.
Also in Malaysia, Fibertex Personal Care is in the process of adding direct-printing nonwovens capabilities to the site through its Innowo Print subsidiary. Fibertex Personal Care acquired full ownership of Innowo Print, a company it helped found in 2007, in late 2014, and announced its intention to expand its operation into Malaysia last year. While Fibertex Personal Care is one of Innowo’s customers, the company does provide direct printing services for a number of other companies. In addition to the Malaysian investment, Innowo is beefing up its German operation by adding a fourth line to the site.
Back to the nonwovens business, Fibertex Personal Care continues to operate three lines capable of making about 50,000 tons of nonwovens per year at its Aalborg, Denmark headquarters. While the company has chosen not to invest in a new European line, instead focusing on Asian growth, it is in the process of upgrading one of the site’s lines to allow it to make softer products.
Aalborg, Denmark
www.fibertexpersonalcare.com
2016 Nonwovens Sales: $283 million
Key Personnel
Mikael Staal Axelsen, group CEO; Peter Andersen, CEO, Malaysia; Claus Svanberg, group CFO; Mette Due Sogaard, group quality and sustainability director; Peter Reis, group supply chain director; Anders Sogaard, operations director, Denmark; Jesper Pedersen, operations director, Malyasia; Ong Soo Fen, CFO, Malaysia, Albert Steffen, managing director, Germany
Plants
Denmark, Malaysia, Germany
Processes
Spunbond/spunmelt
Brands
Comfort, Elite, Dual, Loft
Major Markets
Hygiene
U.S. expansion is on the horizon for Denmark-based nonwovens producer Fibertex Personal Care. The manufacturer of spunmelt nonwovens announced it has purchased a site in Asheboro, NC, in August and will invest $10 million in a new facility. The site will house equipment capable of direct printing on nonwovens. It is the company’s first operation on American soil.
Fibertex Personal Care already has direct printing on nonwovens operations in Germany and Malaysia. The technology was created by Innowo Print, a company Fibertex Personal Care helped found in 2008 and acquired in full in 2014. The process allows colors and images to be printed directly on nonwovens.
“The largest global producers of diapers, sanitary napkins and incontinence products are increasingly demanding print directly on nonwoven materials,” says Mikael Staal Axelsen, group CEO of Fibertex Personal Care. “Today, the majority of products have a design print on a thin film. However, a growing number of our customers have realized the many possibility in having their design printed directly on the nonwoven materials. For instance, print technology gives them the opportunity to enhance the visual expression, which facilitates a range of differentiation possibilities.”
Fibertex Personal Care did not announce any plans to produce nonwovens in the U.S. Instead, the new facility will offer the technology to local nonwovens producers.
Within the company’s nonwovens business, Fibertex Personal Care is currently undergoing an expansion at its Malaysian site, which currently holds four lines.
In January 2016, the company said it would increase capacity in the country by 20% with the construction of a new site, 25 kilometers south of its existing factory in Nilai. The new site will initially house a brand new, state-of-the-art spunmelt line and could ultimately house as many as four lines. The new line should be operational in the second quarter of 2017 and will help sales reach DKK2 billion ($316 million) in 2017.
According to executives, the new line will not only help grow capacity for the company’s current product range, it will also allow Fibertex to make supersoft products, which are in strong demand in the Asian markets.
Fibertex Personal Care is also bringing premium supersoft technology to its Aalborg, Denmark facility, where a new line has not been added in nearly a decade, but in 2016 an existing line was upgraded with super soft technology.
www.fibertexpersonalcare.com
2016 Nonwovens Sales: $283 million
Key Personnel
Mikael Staal Axelsen, group CEO; Peter Andersen, CEO, Malaysia; Claus Svanberg, group CFO; Mette Due Sogaard, group quality and sustainability director; Peter Reis, group supply chain director; Anders Sogaard, operations director, Denmark; Jesper Pedersen, operations director, Malyasia; Ong Soo Fen, CFO, Malaysia, Albert Steffen, managing director, Germany
Plants
Denmark, Malaysia, Germany
Processes
Spunbond/spunmelt
Brands
Comfort, Elite, Dual, Loft
Major Markets
Hygiene
U.S. expansion is on the horizon for Denmark-based nonwovens producer Fibertex Personal Care. The manufacturer of spunmelt nonwovens announced it has purchased a site in Asheboro, NC, in August and will invest $10 million in a new facility. The site will house equipment capable of direct printing on nonwovens. It is the company’s first operation on American soil.
Fibertex Personal Care already has direct printing on nonwovens operations in Germany and Malaysia. The technology was created by Innowo Print, a company Fibertex Personal Care helped found in 2008 and acquired in full in 2014. The process allows colors and images to be printed directly on nonwovens.
“The largest global producers of diapers, sanitary napkins and incontinence products are increasingly demanding print directly on nonwoven materials,” says Mikael Staal Axelsen, group CEO of Fibertex Personal Care. “Today, the majority of products have a design print on a thin film. However, a growing number of our customers have realized the many possibility in having their design printed directly on the nonwoven materials. For instance, print technology gives them the opportunity to enhance the visual expression, which facilitates a range of differentiation possibilities.”
Fibertex Personal Care did not announce any plans to produce nonwovens in the U.S. Instead, the new facility will offer the technology to local nonwovens producers.
Within the company’s nonwovens business, Fibertex Personal Care is currently undergoing an expansion at its Malaysian site, which currently holds four lines.
In January 2016, the company said it would increase capacity in the country by 20% with the construction of a new site, 25 kilometers south of its existing factory in Nilai. The new site will initially house a brand new, state-of-the-art spunmelt line and could ultimately house as many as four lines. The new line should be operational in the second quarter of 2017 and will help sales reach DKK2 billion ($316 million) in 2017.
According to executives, the new line will not only help grow capacity for the company’s current product range, it will also allow Fibertex to make supersoft products, which are in strong demand in the Asian markets.
Fibertex Personal Care is also bringing premium supersoft technology to its Aalborg, Denmark facility, where a new line has not been added in nearly a decade, but in 2016 an existing line was upgraded with super soft technology.
Aalborg, Denmark
www.fibertex.com
2016 Nonwovens Sales: $200 million
Key Personnel
Jørgen Bech Madsen, CEO; Mona Nielsen, CCO; Lars Bertelsen COO; Henrik Eigenbrod, CFO; Keld Lauridsen, group R&D director; Bjarne Knudsen, managing director
Plants
Denmark, Czech Republic, U.S., France, Turkey, South Africa
Processes
Needlepunch, spunlace, impregnating, coating
Major Markets
Acoustics, automotives bedding, building industry, composites, concrete, construction, filtration, flooring, furniture, geotextiles, home and garden horticulture, medical, wipes
Fibertex Nonwovens’ facilities, which are located around the world, continue to boost the company. In 2016, sales increased 6.5% to reach DKK1301 million ($200 million) thanks largely to the acquisition of Ribatek, a Turkish spunlace producer, in late 2015, as well as growing sales to the global automotives industry and an improved product mix featuring more advanced products.
The Turkish operation has allowed Fibertex Nonwovens to build off spunlaced assets already existing at its French location, making it one of the largest makers of crosslapped nonwovens for technical applications. These two operations are major suppliers to the specialty and technical wipes markets globally.
In addition to Turkey and France, Fibertex Nonwovens operates plants in Denmark, where it is headquartered, and the Czech Republic, South Africa and the U.S.
In the Czech Republic, Fibertex Nonwovens added a new needlepunch line in 2016. The investment has allowed the company to make lightweight nonwovens for automotive manufacturers in Europe, particularly the Eastern part of the continent. “A lot of manufacturing is popping up in Eastern Europe so it’s a good location to have assets,” Madsen says.
Meanwhile, in South Africa, Fibertex Nonwovens currently operates two manufacturing lines at a site it established in 2010. This facility mainly serves the geotextiles, industrial and automotive markets, which are not growing as quickly as expected.
Fibertex Nonwovens’ North American operation was acquired from Non Wovens Solutions, an Illinois-based needlepunch manufacturer in October 2014. The existing location, which currently houses two lines, has not only allowed the company to grow sales of its value-added products for the composite, filtration and automotives industries, it has brought Fibertex Nonwovens closer to its customers in North America.
“We will expand there but there has been no decision made yet,” Madsen says. “We are working in many segments so we are constantly looking at ways to support our customers.”
In fact, supporting customer developments has been the motivation behind Fibertex Nonwovens’ acquisition and investment activities around the world during the past decade.
“We follow our customers’ developments. If they move geographies, then we will move to new geographies,” Madsen says.
Asia will is also in the company’s sites. The company has recently started development and logistic companies in both India and China. “Our plan is to absolutely have lines there,” says CEO Jørgen Bech Madsen. “But we are taking absolute baby steps.”
In India, capacity would likely serve infrastructure improvements with materials for geotextile and construction applications, while any Chinese lines would service Fibertex’s key global accounts in the automotives market.
www.fibertex.com
2016 Nonwovens Sales: $200 million
Key Personnel
Jørgen Bech Madsen, CEO; Mona Nielsen, CCO; Lars Bertelsen COO; Henrik Eigenbrod, CFO; Keld Lauridsen, group R&D director; Bjarne Knudsen, managing director
Plants
Denmark, Czech Republic, U.S., France, Turkey, South Africa
Processes
Needlepunch, spunlace, impregnating, coating
Major Markets
Acoustics, automotives bedding, building industry, composites, concrete, construction, filtration, flooring, furniture, geotextiles, home and garden horticulture, medical, wipes
Fibertex Nonwovens’ facilities, which are located around the world, continue to boost the company. In 2016, sales increased 6.5% to reach DKK1301 million ($200 million) thanks largely to the acquisition of Ribatek, a Turkish spunlace producer, in late 2015, as well as growing sales to the global automotives industry and an improved product mix featuring more advanced products.
The Turkish operation has allowed Fibertex Nonwovens to build off spunlaced assets already existing at its French location, making it one of the largest makers of crosslapped nonwovens for technical applications. These two operations are major suppliers to the specialty and technical wipes markets globally.
In addition to Turkey and France, Fibertex Nonwovens operates plants in Denmark, where it is headquartered, and the Czech Republic, South Africa and the U.S.
In the Czech Republic, Fibertex Nonwovens added a new needlepunch line in 2016. The investment has allowed the company to make lightweight nonwovens for automotive manufacturers in Europe, particularly the Eastern part of the continent. “A lot of manufacturing is popping up in Eastern Europe so it’s a good location to have assets,” Madsen says.
Meanwhile, in South Africa, Fibertex Nonwovens currently operates two manufacturing lines at a site it established in 2010. This facility mainly serves the geotextiles, industrial and automotive markets, which are not growing as quickly as expected.
Fibertex Nonwovens’ North American operation was acquired from Non Wovens Solutions, an Illinois-based needlepunch manufacturer in October 2014. The existing location, which currently houses two lines, has not only allowed the company to grow sales of its value-added products for the composite, filtration and automotives industries, it has brought Fibertex Nonwovens closer to its customers in North America.
“We will expand there but there has been no decision made yet,” Madsen says. “We are working in many segments so we are constantly looking at ways to support our customers.”
In fact, supporting customer developments has been the motivation behind Fibertex Nonwovens’ acquisition and investment activities around the world during the past decade.
“We follow our customers’ developments. If they move geographies, then we will move to new geographies,” Madsen says.
Asia will is also in the company’s sites. The company has recently started development and logistic companies in both India and China. “Our plan is to absolutely have lines there,” says CEO Jørgen Bech Madsen. “But we are taking absolute baby steps.”
In India, capacity would likely serve infrastructure improvements with materials for geotextile and construction applications, while any Chinese lines would service Fibertex’s key global accounts in the automotives market.
Aalborg, Denmark
www.fibertexpersonalcare.com
2017 Nonwovens Sales: $317 million
Key Personnel
Mikael Staal Axelsen, group CEO; Peter Andersen, CEO, Malaysia; Claus Svanberg, group CFO; Mette Due Sogaard, group quality and sustainability director; Peter Reis, group supply chain director; Anders Sogaard, operations director, Denmark; Jesper Pedersen, operations director, Malaysia; Ong Soo Fen, CFO, Malaysia; Albert Steffen, managing director, Germany
Plants
Denmark, Malaysia, Germany, U.S.
Processes
Spunbond, spunmelt
Brands
Comfort, Elite, Dual, Loft
Major Markets
Hygiene
Sales climbed at Denmark-based Fibertex Personal Care in 2017 thanks largely to increased volumes out of its Malaysian business and the increasing contribution of its of its Innowo Print business. Sales were DKK 2.106 billion ($317 million) compare to DKK 1.892 billion ($297 million) in 2016.
And, sales are expected to continue to climb thanks in part to the completion of the company’s latest production line at a brand new facility in Nilai, Malaysia, in late 2017. The new line, which not only adds 20,000 tons capacity to Fibertex’s Malaysian operation, expands its capabilities to make supersoft products which are in high demand in the Asian markets.
The new line is Fibertex Personal Care’s fifth in Malaysia. Its original plant, near Kuala Lumpur, was established in 2003 and houses four lines, making the company one of the largest manufacturers of spunmelt nonwovens in Asia and the largest foreign supplier to the Japanese diaper market. The new site has enough room to someday house four production lines, meaning that Fibertex Personal Care will be well positioned to capitalize on future growth in the Asian hygiene market.
“Asia is a growth region and Malaysia is centrally good located and a very good production country,” says president Mikael Staal Axelsen.
While Fibertex has not invested in a new line at its facility in Aalborg, Denmark, in more than a decade, the company has focused on making line improvements to its operations, allowing its lines there to offer many of the same attributes available on its newer lines in Malaysia. The site’s latest upgrade in late 2016 added capacity and incorporated high loft and supersoft spunmelt nonwovens.
In other expansion news, Fibertex Personal Care continues to focus on its printing operation, Innowo Print. The producer has established a U.S. operation for its direct-to-print on nonwovens operation, allowing it to better serve its North American customers
The $10 million investment, Fibertex Personal Care’s first in the U.S., includes a new facility in Asheboro, NC, which will be dedicated to direct printing on nonwovens. It is expected to come onstream in the fourth quarter.
Fibertex fully owns Innowo Print, a German-based printing company, with operations in Germany and Malaysia.
“The large global producers of diapers, sanitary napkins and incontinence products are increasingly demanding printing directly on nonwoven materials,” Axelsen says. “Today, the majority of products have a design print on a thin film. However, a growing number of our customers have realized the many possibilities in having their design printed directly on the nonwoven materials. For instance, our print technology gives them the opportunity to enhance the visual expression, which facilitates a range of differentiation possibilities.”
Fibertex Personal Care co-founded Innowo Print in 2008 and assumed full ownership of the subsidiary in 2014. “It is the idea that the print production in Germany and Malaysia is to cover the European and the Asian markets, respectively, while the coming factory in the U.S. is to cover the markets in North and South America.”
www.fibertexpersonalcare.com
2017 Nonwovens Sales: $317 million
Key Personnel
Mikael Staal Axelsen, group CEO; Peter Andersen, CEO, Malaysia; Claus Svanberg, group CFO; Mette Due Sogaard, group quality and sustainability director; Peter Reis, group supply chain director; Anders Sogaard, operations director, Denmark; Jesper Pedersen, operations director, Malaysia; Ong Soo Fen, CFO, Malaysia; Albert Steffen, managing director, Germany
Plants
Denmark, Malaysia, Germany, U.S.
Processes
Spunbond, spunmelt
Brands
Comfort, Elite, Dual, Loft
Major Markets
Hygiene
Sales climbed at Denmark-based Fibertex Personal Care in 2017 thanks largely to increased volumes out of its Malaysian business and the increasing contribution of its of its Innowo Print business. Sales were DKK 2.106 billion ($317 million) compare to DKK 1.892 billion ($297 million) in 2016.
And, sales are expected to continue to climb thanks in part to the completion of the company’s latest production line at a brand new facility in Nilai, Malaysia, in late 2017. The new line, which not only adds 20,000 tons capacity to Fibertex’s Malaysian operation, expands its capabilities to make supersoft products which are in high demand in the Asian markets.
The new line is Fibertex Personal Care’s fifth in Malaysia. Its original plant, near Kuala Lumpur, was established in 2003 and houses four lines, making the company one of the largest manufacturers of spunmelt nonwovens in Asia and the largest foreign supplier to the Japanese diaper market. The new site has enough room to someday house four production lines, meaning that Fibertex Personal Care will be well positioned to capitalize on future growth in the Asian hygiene market.
“Asia is a growth region and Malaysia is centrally good located and a very good production country,” says president Mikael Staal Axelsen.
While Fibertex has not invested in a new line at its facility in Aalborg, Denmark, in more than a decade, the company has focused on making line improvements to its operations, allowing its lines there to offer many of the same attributes available on its newer lines in Malaysia. The site’s latest upgrade in late 2016 added capacity and incorporated high loft and supersoft spunmelt nonwovens.
In other expansion news, Fibertex Personal Care continues to focus on its printing operation, Innowo Print. The producer has established a U.S. operation for its direct-to-print on nonwovens operation, allowing it to better serve its North American customers
The $10 million investment, Fibertex Personal Care’s first in the U.S., includes a new facility in Asheboro, NC, which will be dedicated to direct printing on nonwovens. It is expected to come onstream in the fourth quarter.
Fibertex fully owns Innowo Print, a German-based printing company, with operations in Germany and Malaysia.
“The large global producers of diapers, sanitary napkins and incontinence products are increasingly demanding printing directly on nonwoven materials,” Axelsen says. “Today, the majority of products have a design print on a thin film. However, a growing number of our customers have realized the many possibilities in having their design printed directly on the nonwoven materials. For instance, our print technology gives them the opportunity to enhance the visual expression, which facilitates a range of differentiation possibilities.”
Fibertex Personal Care co-founded Innowo Print in 2008 and assumed full ownership of the subsidiary in 2014. “It is the idea that the print production in Germany and Malaysia is to cover the European and the Asian markets, respectively, while the coming factory in the U.S. is to cover the markets in North and South America.”
Aalborg, Denmark
www.fibertexnonwovens.com
2017 Nonwovens Sales: $217 million
Key Personnel
Jorgen Bech Madsen, CEO; Henrik Kjeldsen, CCO; Lars Bertelsen, COO: Henrik Eigenbrod, CFO; Keld Lauridsen, group R&D director; Bjarne Knudsen, managing director
Plants
Denmark, Czech Republic, U.S., France, Turkey, South Africa, Brazil
Processes
Needlepunch, spunlace, impregnating, coating
Major Markets
Acoustics, automotives, bedding, building, composites, concrete, construction, filtration, flooring, furniture, geotextiles, home and garden, horticulture, medical, wipes
At the start of 2018, Fibertex Nonwovens continued its global expansion through the acquisition of a Brazilian operation. Duci, based in an industrial district west of Sao Paulo, has about 130 employees and generated revenue of about DKK 115 million ($18 million) in 2017.
Duci has a relatively new production platform centered around spunlace technology for technical applications, according to the company.
“Buying Duci was a good opportunity to build our position in South America across markets like automotives, filtration, shoe components and wipes,” says Jorgen Bech Madsen, president of Fibertex Nonwovens. “It is a well driven company with the right technical platform and space for expansion.”
Duci’s technology is similar to crosslapped spunlace technology already employed by Fibertex in France and Turkey. These operations have made Fibertex Nonwovens one of the largest makers of crosslapped nonwovens for technical applications in the world.
Much of Fibertex Nonwovens’ global expansion during the past several years has been achieved through acquisition. It acquired Ribatek, a Turkish company, in 2015, and purchased a U.S.-based needlepuncher in 2014, giving it its first entry into North America. The moves followed similar deals in France and the Czech Republic earlier in the decade.
The company also established a greenfield operation in South Africa in 2010 which mainly focuses on the geotextiles, industrial and automotives markets.
All of this investment has paid off. In 2017, sales at the maker of nonwovens for technical applications increased 9% to reach DKK 1,422 million ($217 million) thanks to broad-based growth across all of the company’s operations. Highlights of the year included growing sales in the automotives market, an improved product mix with higher sales of advanced products and improvements in European sales to the construction industry.
In the U.S., Fibertex’s operation, which was acquired in 2014, has continued to prove itself as a long-term investment for the company. With two needlepunch lines, the facility has grown its sales of value-added products for the composite, filtration and automotives industries and brought the company closer to its customers in North America.
Meanwhile, Fibertex’s South African operation has faced several challenges including raw material shortages and overcapacity in the market, but Bech Madsen remains confident that the business group can help build the company’s overall business by supporting Europe and facilitating growth in business in Asia and India.
While India and Asia continue to be a growth priority for Fibertex, there are currently no plans to acquire or otherwise invest in these areas, he adds.
Over the past several years, Fibertex Nonwovens has developed a solid portfolio of new products that allow it to serve high value markets for nonwovens such as automotives, composites, filtration and acoustics.
To continue to meet the needs of these markets, the company is constantly expanding its facilities and upgrading its lines. For example, the company has added a specialty line for filtration applications in the Czech Republic and undertaken line upgrades across all of its manufacturing sites.
“There is always a lot going on to help add value to product,” Madsen says. “We have the advantage that we master a lot of different technologies.”
www.fibertexnonwovens.com
2017 Nonwovens Sales: $217 million
Key Personnel
Jorgen Bech Madsen, CEO; Henrik Kjeldsen, CCO; Lars Bertelsen, COO: Henrik Eigenbrod, CFO; Keld Lauridsen, group R&D director; Bjarne Knudsen, managing director
Plants
Denmark, Czech Republic, U.S., France, Turkey, South Africa, Brazil
Processes
Needlepunch, spunlace, impregnating, coating
Major Markets
Acoustics, automotives, bedding, building, composites, concrete, construction, filtration, flooring, furniture, geotextiles, home and garden, horticulture, medical, wipes
At the start of 2018, Fibertex Nonwovens continued its global expansion through the acquisition of a Brazilian operation. Duci, based in an industrial district west of Sao Paulo, has about 130 employees and generated revenue of about DKK 115 million ($18 million) in 2017.
Duci has a relatively new production platform centered around spunlace technology for technical applications, according to the company.
“Buying Duci was a good opportunity to build our position in South America across markets like automotives, filtration, shoe components and wipes,” says Jorgen Bech Madsen, president of Fibertex Nonwovens. “It is a well driven company with the right technical platform and space for expansion.”
Duci’s technology is similar to crosslapped spunlace technology already employed by Fibertex in France and Turkey. These operations have made Fibertex Nonwovens one of the largest makers of crosslapped nonwovens for technical applications in the world.
Much of Fibertex Nonwovens’ global expansion during the past several years has been achieved through acquisition. It acquired Ribatek, a Turkish company, in 2015, and purchased a U.S.-based needlepuncher in 2014, giving it its first entry into North America. The moves followed similar deals in France and the Czech Republic earlier in the decade.
The company also established a greenfield operation in South Africa in 2010 which mainly focuses on the geotextiles, industrial and automotives markets.
All of this investment has paid off. In 2017, sales at the maker of nonwovens for technical applications increased 9% to reach DKK 1,422 million ($217 million) thanks to broad-based growth across all of the company’s operations. Highlights of the year included growing sales in the automotives market, an improved product mix with higher sales of advanced products and improvements in European sales to the construction industry.
In the U.S., Fibertex’s operation, which was acquired in 2014, has continued to prove itself as a long-term investment for the company. With two needlepunch lines, the facility has grown its sales of value-added products for the composite, filtration and automotives industries and brought the company closer to its customers in North America.
Meanwhile, Fibertex’s South African operation has faced several challenges including raw material shortages and overcapacity in the market, but Bech Madsen remains confident that the business group can help build the company’s overall business by supporting Europe and facilitating growth in business in Asia and India.
While India and Asia continue to be a growth priority for Fibertex, there are currently no plans to acquire or otherwise invest in these areas, he adds.
Over the past several years, Fibertex Nonwovens has developed a solid portfolio of new products that allow it to serve high value markets for nonwovens such as automotives, composites, filtration and acoustics.
To continue to meet the needs of these markets, the company is constantly expanding its facilities and upgrading its lines. For example, the company has added a specialty line for filtration applications in the Czech Republic and undertaken line upgrades across all of its manufacturing sites.
“There is always a lot going on to help add value to product,” Madsen says. “We have the advantage that we master a lot of different technologies.”
Aalborg, Denmark
www.fibertexnonwovens.com
2018 Nonwovens Sales: $234 million
Key Personnel
Jorgen Bech Madsen, CEO; Henrik Kjeldsen, CCO; Lars Bertelsen, COO: Henrik Eigenbrod, CFO; Keld Lauridsen, group R&D director; Bjarne Knudsen, managing director
Plants
Denmark, Czech Republic, U.S., France, Turkey, South Africa, Brazil
Processes
Needlepunch, spunlace, impregnating, coating
Major Markets
Acoustics, automotives, bedding, building, composites, concrete, construction, filtration, flooring, furniture, geotextiles, home and garden, horticulture, medical, wipes
Fibertex Nonwovens continues to grow through acquisition. In January 2019, the Denmark-based maker of nonwovens for a number of technical markets purchased Mogul’s U.S. operation in Grey Court, SC, providing it with instant access to 14,000 tons of spunlace nonwovens to target growth in the North American market.
“The acquisition brings us closer to our U.S., customers,” says CEO Jorgen Bech Madsen. “We have been sold out in Chicago for a while and have been importing a lot from Europe.”
Fibertex already has a needlepunch site near Chicago, IL, which it acquired from Non Woven Solutions in October 2014 for about $25 million. This operation has largely targeted the automotives market in North America.
In addition to adding to its U.S. manufacturing footprint, the Mogul purchase also gives Fibertex increased capacity of a technology it knows well.
“Mogul is a strategic fit because we have experience in spunlace market in Turkey and Brazil but we have no local production in the U.S.,” Madsen says. “The site also has a lot of land and is in a good location so we will definitely expand.”
The North American line mainly targets wipes as well as some personal care products.
Fibertex’s acquisition of Mogul’s U.S. site is just the latest in a string of expansion efforts that have increased the company’s global footprint. In February 2018, Fibertex acquired DUCI, a Brazilian-owned nonwovens manufacturer with strong potential in the automotives industry. DUCI manufactures spunlaced nonwovens, a technology Fibertex already uses at its sites in France and Turkey.
The incorporation of DUCI builds on existing technologies and market expertise Fibertex already had in Europe, in particular the automotives market, and will allow the company to follow its customers across the Atlantic Ocean.
The acquisition of DUCI also opened doors to the South American market with products for the composite industry as well as high-performance wipes, where Fibertex Nonwovens has a strong position in Europe.
In fact, just eight months after purchase, Fibertex announced plans to expand production at the site by 20% to accommodate growing demand for special-purpose products for the automotive and other industries. At the time of the announcement, executives said that the DUCI integration had by far exceeded expectations.
“We’ve been planning to expand capacity since acquiring DUCI, but the need has arisen faster than we anticipated, and we will begin to upgrade the existing production line immediately,” Madsen says. “We know from previous experience in expanding our other factory sites that an upgrade can increase our output capacity by 20%. In addition, we will accelerate planning for other expansion projects.”
Estimated at close to DKK 15 million, the investment will add capacity that has already been sold extra to the growing Brazilian market, which is the world’s sixth-largest and accounts for more than half of the entire South American market.
In other investment news, Fibertex has added in a nanofiber line at its Aalborg, Denmark, headquarters targeting the filter media market.
In addition to a new production line, which uses a range of polymers and is able to tailor them for a wide range of different applications, Fibertex Nonwovens has also invested in new lab facilities, new converting and post-processing lines for e.g. plasma treatment, giving the products quite unique permanently hydrophobic properties.
According to executives, the filtration market is turning out to be one of the most promising markets for Fibertex Nonwovens. The company’s new filtration media offer higher filtration efficiency with less pressure drop than in conventional filtration products. The greater active surface area of the nanofibers and minute deviations in pore size ensure very high filtration material performance. Potential applications for these nano-based filtration products include liquid and air filtration, to filter out bacteria or pollen, for example. The fibers in the nanoproducts have a thickness of only 100 nanometers, whereas ordinary nonwoven fiber are about 100 times thicker.
“We see a huge potential in the filtration market, and our ambition is to become a leading global player capable of manufacturing filters with a wide range of different properties. In addition, we have the facilities to produce these products under fully controlled and certified production conditions ensuring environmentally-responsible and sustainable production,” Madsen continues.
He adds that all the equipment installed in the new premises is fully compliant with the highest environmental and safety standards.
www.fibertexnonwovens.com
2018 Nonwovens Sales: $234 million
Key Personnel
Jorgen Bech Madsen, CEO; Henrik Kjeldsen, CCO; Lars Bertelsen, COO: Henrik Eigenbrod, CFO; Keld Lauridsen, group R&D director; Bjarne Knudsen, managing director
Plants
Denmark, Czech Republic, U.S., France, Turkey, South Africa, Brazil
Processes
Needlepunch, spunlace, impregnating, coating
Major Markets
Acoustics, automotives, bedding, building, composites, concrete, construction, filtration, flooring, furniture, geotextiles, home and garden, horticulture, medical, wipes
Fibertex Nonwovens continues to grow through acquisition. In January 2019, the Denmark-based maker of nonwovens for a number of technical markets purchased Mogul’s U.S. operation in Grey Court, SC, providing it with instant access to 14,000 tons of spunlace nonwovens to target growth in the North American market.
“The acquisition brings us closer to our U.S., customers,” says CEO Jorgen Bech Madsen. “We have been sold out in Chicago for a while and have been importing a lot from Europe.”
Fibertex already has a needlepunch site near Chicago, IL, which it acquired from Non Woven Solutions in October 2014 for about $25 million. This operation has largely targeted the automotives market in North America.
In addition to adding to its U.S. manufacturing footprint, the Mogul purchase also gives Fibertex increased capacity of a technology it knows well.
“Mogul is a strategic fit because we have experience in spunlace market in Turkey and Brazil but we have no local production in the U.S.,” Madsen says. “The site also has a lot of land and is in a good location so we will definitely expand.”
The North American line mainly targets wipes as well as some personal care products.
Fibertex’s acquisition of Mogul’s U.S. site is just the latest in a string of expansion efforts that have increased the company’s global footprint. In February 2018, Fibertex acquired DUCI, a Brazilian-owned nonwovens manufacturer with strong potential in the automotives industry. DUCI manufactures spunlaced nonwovens, a technology Fibertex already uses at its sites in France and Turkey.
The incorporation of DUCI builds on existing technologies and market expertise Fibertex already had in Europe, in particular the automotives market, and will allow the company to follow its customers across the Atlantic Ocean.
The acquisition of DUCI also opened doors to the South American market with products for the composite industry as well as high-performance wipes, where Fibertex Nonwovens has a strong position in Europe.
In fact, just eight months after purchase, Fibertex announced plans to expand production at the site by 20% to accommodate growing demand for special-purpose products for the automotive and other industries. At the time of the announcement, executives said that the DUCI integration had by far exceeded expectations.
“We’ve been planning to expand capacity since acquiring DUCI, but the need has arisen faster than we anticipated, and we will begin to upgrade the existing production line immediately,” Madsen says. “We know from previous experience in expanding our other factory sites that an upgrade can increase our output capacity by 20%. In addition, we will accelerate planning for other expansion projects.”
Estimated at close to DKK 15 million, the investment will add capacity that has already been sold extra to the growing Brazilian market, which is the world’s sixth-largest and accounts for more than half of the entire South American market.
In other investment news, Fibertex has added in a nanofiber line at its Aalborg, Denmark, headquarters targeting the filter media market.
In addition to a new production line, which uses a range of polymers and is able to tailor them for a wide range of different applications, Fibertex Nonwovens has also invested in new lab facilities, new converting and post-processing lines for e.g. plasma treatment, giving the products quite unique permanently hydrophobic properties.
According to executives, the filtration market is turning out to be one of the most promising markets for Fibertex Nonwovens. The company’s new filtration media offer higher filtration efficiency with less pressure drop than in conventional filtration products. The greater active surface area of the nanofibers and minute deviations in pore size ensure very high filtration material performance. Potential applications for these nano-based filtration products include liquid and air filtration, to filter out bacteria or pollen, for example. The fibers in the nanoproducts have a thickness of only 100 nanometers, whereas ordinary nonwoven fiber are about 100 times thicker.
“We see a huge potential in the filtration market, and our ambition is to become a leading global player capable of manufacturing filters with a wide range of different properties. In addition, we have the facilities to produce these products under fully controlled and certified production conditions ensuring environmentally-responsible and sustainable production,” Madsen continues.
He adds that all the equipment installed in the new premises is fully compliant with the highest environmental and safety standards.
Aalborg, Denmark
www.fibertexpersonalcare.com
2018 Nonwovens Sales: $329 million
Key Personnel
Mikael Staal Axelsen, group CEO; Peter Andersen, CEO, Malaysia; Claus Svanberg, group CFO; Mette Due Sogaard, group quality and sustainability director; Peter Reis, group supply chain director; Anders Sogaard, operations director, Denmark; Jesper Pedersen, operations director, Malaysia; Ong Soo Fen, CFO, Malaysia; Albert Steffen, managing director, Germany
Plants
Denmark, Malaysia, Germany, U.S.
Processes
Spunbond, spunmelt
Brands
Comfort, Elite, Dual, Loft
Major Markets
Hygiene
Sales at Fibertex Personal Care increased 8% to reach DKK 2187 million ($329 million) in 2018, driven by higher prices of raw materials and strength in the company’s printing business as well as the addition of a new line in Asia. Volumes were in line with the previous year but increases came out of the company’s Asian operation in Malaysia while sales generated in Denmark decreased.
Despite higher volume sales, increased competition, particularly in Asia, has decreased demand for products supplied from Fibertex Personal Care’s two Malaysian sites. However, its latest investment in Malaysia is focused on specialty nonwovens which is allowing it to step up new product development and offer specialized products.
The latest Asian investment, the fifth in Malaysia, was completed at a second production site in late 2017 adding 20,000 tons of capacity and giving Fibertex Nonwovens the ability to make supersoft nonwovens, which are in high demand in Asian markets.
“The new line is a specialty line, which is key to being successful in Asia,” says Mikael Staal Axelsen, president.
Fibertex Personal Care has been present in Malaysia since 2003 and is one of the largest manufacturers of spunmelt nonwovens in Asia and the largest foreign supplier to the Japanese diaper market. The new site has enough room to somehow house four production lines, meaning that Fibertex Personal Care will be well positioned to capitalize on future growth in the Asian hygiene market.
Staal Axelsen hinted that this expansion may not necessarily involve its core technology, spunmelt. “We had plans for expansion but not necessarily with classic spunbond volume as markets are saturated,” he says.
Meanwhile in Europe, where Fibertex Nonwovens operates two lines in Aalborg, Denmark, the market is gradually moving toward specialty products, and the company has stepped up its focus on innovation and patents in this segment. As a result the company will soon be able to launch products featuring new functions and visual effects.
Beyond nonwovens production, Fibertex Personal Care holds sophisticated knowledge of direct printing on nonwovens through its Innowo Print Business, which it co-founded in 2008 and assumed full ownership of in 2014. The company already operates printing operations in Germany and Malaysia and has recently completed a new factory in Asheboro, NC. The latest investment, estimated at $10 million, came onstream in the fourth quarter of 2018 and represented the company’s first operation in North America.
In 2018, printing activities contributed DKK 376 million ($56 million) to the company’s sales, up from DKK 266 million ($40 million) the year before. “So far we are satisfied with this progress,” he says.
www.fibertexpersonalcare.com
2018 Nonwovens Sales: $329 million
Key Personnel
Mikael Staal Axelsen, group CEO; Peter Andersen, CEO, Malaysia; Claus Svanberg, group CFO; Mette Due Sogaard, group quality and sustainability director; Peter Reis, group supply chain director; Anders Sogaard, operations director, Denmark; Jesper Pedersen, operations director, Malaysia; Ong Soo Fen, CFO, Malaysia; Albert Steffen, managing director, Germany
Plants
Denmark, Malaysia, Germany, U.S.
Processes
Spunbond, spunmelt
Brands
Comfort, Elite, Dual, Loft
Major Markets
Hygiene
Sales at Fibertex Personal Care increased 8% to reach DKK 2187 million ($329 million) in 2018, driven by higher prices of raw materials and strength in the company’s printing business as well as the addition of a new line in Asia. Volumes were in line with the previous year but increases came out of the company’s Asian operation in Malaysia while sales generated in Denmark decreased.
Despite higher volume sales, increased competition, particularly in Asia, has decreased demand for products supplied from Fibertex Personal Care’s two Malaysian sites. However, its latest investment in Malaysia is focused on specialty nonwovens which is allowing it to step up new product development and offer specialized products.
The latest Asian investment, the fifth in Malaysia, was completed at a second production site in late 2017 adding 20,000 tons of capacity and giving Fibertex Nonwovens the ability to make supersoft nonwovens, which are in high demand in Asian markets.
“The new line is a specialty line, which is key to being successful in Asia,” says Mikael Staal Axelsen, president.
Fibertex Personal Care has been present in Malaysia since 2003 and is one of the largest manufacturers of spunmelt nonwovens in Asia and the largest foreign supplier to the Japanese diaper market. The new site has enough room to somehow house four production lines, meaning that Fibertex Personal Care will be well positioned to capitalize on future growth in the Asian hygiene market.
Staal Axelsen hinted that this expansion may not necessarily involve its core technology, spunmelt. “We had plans for expansion but not necessarily with classic spunbond volume as markets are saturated,” he says.
Meanwhile in Europe, where Fibertex Nonwovens operates two lines in Aalborg, Denmark, the market is gradually moving toward specialty products, and the company has stepped up its focus on innovation and patents in this segment. As a result the company will soon be able to launch products featuring new functions and visual effects.
Beyond nonwovens production, Fibertex Personal Care holds sophisticated knowledge of direct printing on nonwovens through its Innowo Print Business, which it co-founded in 2008 and assumed full ownership of in 2014. The company already operates printing operations in Germany and Malaysia and has recently completed a new factory in Asheboro, NC. The latest investment, estimated at $10 million, came onstream in the fourth quarter of 2018 and represented the company’s first operation in North America.
In 2018, printing activities contributed DKK 376 million ($56 million) to the company’s sales, up from DKK 266 million ($40 million) the year before. “So far we are satisfied with this progress,” he says.
Aalborg, Denmark
www.fibertexpersonalcare.com
2019 Nonwovens Sales: $348 million
Key Personnel
Mikael Staal Axelsen, Group CEO; Peter Andersen, CEO, Malaysia; Claus Svanberg, Group CFO; Carsten Pedersen, Print Director.
Plants
Denmark, Germany, Malaysia, USA, North Carolina
Processes
Nonwovens: Spunbond/Spunmelt Print: Flexographic
Fibertex Personal Care reported 2019 sales that were largely in line with 2018 company wide. However sales from its Denmark facility increased while nonwovens sales from Malaysia decreased from DKK 306 to DKK 271 due to weaker demand in Malaysia.
Fibertex Personal Care operates five lines in Malaysia. The fifth line was complete in 2017, at a second production site. This line not only added 20,000 tons of capacity to the company’s output, it also gave the company the ability to make supersoft nonwovens, which are in high demand in Asia.
In fact, Fibertex Personal Care reports that the trend for supersoft and other specialty products is gradually moving toward Europe. In response, the company has stepped up its focus on launching products featuring new functions and visual effects as well as softer and more textile-like materials.
The majority of products sold at Fibertex Personal Care target the baby diaper segment, but the company is reporting strong growth in incontinence and feminine hygiene sales driven by demographic developments. To better serve these markets, the company has focused on improving its technology platform and diversifying its raw material base to product specialty products customized to meet new demands.
One of these services is achieved through the company’s Innowo Print business, which offers direct printing on nonwovens. The company operates printing operations in Germany, Malaysia and US, NC.
This focus on innovation is expected to help Fibertex Personal Care remain a preferred supplier amidst heavy competition both in Europe and Asia. Rather than focus on capacity investment, which has been heavy throughout the industry in recent years, the company instead is focusing on maximizing the use of its existing assets until it becomes necessary to invest in additional capacity.
Another area of interest to Fibertex Nonwovens is sustainability. This is proven through its receipt of ISCC certification (International Sustainability and Carbon Certification ), which allows the Aalborg site to sell ISCC Plus certified nonwovens.
“We are very excited about this – and we are now ready to meet customer demand for more sustainable nonwovens and to support the development of a more sustainable supply chain for plastics,” Axelsen says.
The new sustainable offering can be applied broadly as a drop-in solution since the nonwoven will maintain all the usual excellent properties. There are no changes to recyclability and other waste management processes.
www.fibertexpersonalcare.com
2019 Nonwovens Sales: $348 million
Key Personnel
Mikael Staal Axelsen, Group CEO; Peter Andersen, CEO, Malaysia; Claus Svanberg, Group CFO; Carsten Pedersen, Print Director.
Plants
Denmark, Germany, Malaysia, USA, North Carolina
Processes
Nonwovens: Spunbond/Spunmelt Print: Flexographic
Fibertex Personal Care reported 2019 sales that were largely in line with 2018 company wide. However sales from its Denmark facility increased while nonwovens sales from Malaysia decreased from DKK 306 to DKK 271 due to weaker demand in Malaysia.
Fibertex Personal Care operates five lines in Malaysia. The fifth line was complete in 2017, at a second production site. This line not only added 20,000 tons of capacity to the company’s output, it also gave the company the ability to make supersoft nonwovens, which are in high demand in Asia.
In fact, Fibertex Personal Care reports that the trend for supersoft and other specialty products is gradually moving toward Europe. In response, the company has stepped up its focus on launching products featuring new functions and visual effects as well as softer and more textile-like materials.
The majority of products sold at Fibertex Personal Care target the baby diaper segment, but the company is reporting strong growth in incontinence and feminine hygiene sales driven by demographic developments. To better serve these markets, the company has focused on improving its technology platform and diversifying its raw material base to product specialty products customized to meet new demands.
One of these services is achieved through the company’s Innowo Print business, which offers direct printing on nonwovens. The company operates printing operations in Germany, Malaysia and US, NC.
This focus on innovation is expected to help Fibertex Personal Care remain a preferred supplier amidst heavy competition both in Europe and Asia. Rather than focus on capacity investment, which has been heavy throughout the industry in recent years, the company instead is focusing on maximizing the use of its existing assets until it becomes necessary to invest in additional capacity.
Another area of interest to Fibertex Nonwovens is sustainability. This is proven through its receipt of ISCC certification (International Sustainability and Carbon Certification ), which allows the Aalborg site to sell ISCC Plus certified nonwovens.
“We are very excited about this – and we are now ready to meet customer demand for more sustainable nonwovens and to support the development of a more sustainable supply chain for plastics,” Axelsen says.
The new sustainable offering can be applied broadly as a drop-in solution since the nonwoven will maintain all the usual excellent properties. There are no changes to recyclability and other waste management processes.
Aalborg, Denmark
www.fibertexnonwovens.com
2019 Nonwovens Sales: $269 million
Key Personnel
Jorgen Bech Madsen, CEO; Henrik Kjeldsen, CCO; Lars Bertelsen, COO: Henrik Eigenbrod, CFO; Keld Lauridsen, group R&D director; Bjarne Knudsen, managing director
Plants
Denmark, Czech Republic, U.S., France, Turkey, South Africa, Brazil
Processes
Needlepunch, spunlace, impregnating, coating
Major Markets
Acoustics, automotives, bedding, building, composites, concrete, construction, filtration, flooring, furniture, geotextiles, home and garden, horticulture, medical, wipes
A string of acquisitions has helped boost Fibertex Nonwovens’ sales in recent years and expand its role into a number of markets and regions. Its most recent acquisition, in January 2019, was a U.S.-based spunlace facility from Mogul Nonwovens. The Grey Court, SC site added 14,000 tons of capacity to the company’s global output and is allowing it to target growth in North America. Since acquiring the site, Fibertex has upgraded the spunlace line to add special features and enlarge its product range as well as enter value-added business segments within wipes and medical applications.
In other investment news, Fibertex Nonwovens has upgraded an existing needlepunch line in South Africa and relocated it to North America. The relocation will increase output capacity in North America and support growth while aligning the company’s capacity in South Africa to meet current needs, according to the company.
“By expanding in North America, we continue our very strong development within needlepunch within automotive, building, furniture and bedding, filtration, and industrial markets, while providing for future growth,” says Jorgen Bech Madsen, CEO. “The new state-of-the-art high capacity needlepunch line will provide opportunities to be closer to some customers, offering greater flexibility and capacity as well as sustainable products.”
Fibertex Nonwovens had already produced needlepunched nonwovens in the U.S. at a site outside Chicago, IL, which was acquired from Non Woven Solutions in October 2014. This site largely targets the automotives market.
In 2018, Fibertex Nonwovens expanded its global footprint into Brazil through the acquisition of Duci, a Brazilian-owned manufacturer with a strong potential in the automotives industry. Duci was a maker of spunlaced nonwovens for industrial application, a technology Fibertex Nonwovens already made in France. Incorporating Duci has allowed Fibertex Nonwovens to follow its customers across the Atlantic Ocean by opening doors in South America with products for the composite industry as well as high performance wipes where Fibertex Nonwovens has a strong position in Europe.
Just eight months after purchasing Duci, in early 2019, Fibertex announced it would expand production at the site by 20% to accommodate growing demand for special purpose products for the automotive and other industries. This investment was estimated at DKK15 million. According to Madsen, the company was able to keep production up and running throughout 2020 despite slowdowns in many markets brought on by the coronavirus pandemic.
“We have a strong position in the Brazilian market,” he adds. “In fact, the pandemic brought new customers and new demands for nonwovens.”
In other investment moves, Fibertex has started up nanotechnology applications, restructured production in the Czech Republic and Turkey and optimized production across its European sites. In terms of development and innovation, the company has built a solid portfolio of new projects including new products for automotive and composite industries and for filtration and acoustic purposes, while steadily expanding capacity and upgrading production lines to increase the proportion of value-added products.
For the first half of 2020, a promising start was soon cut short by the impact of the coronavirus in the first quarter. However, Fibertex Nonwovens quickly and successful realigned its production capacity from automotive and industrial purposes to other products in strong demand, thereby increasing its capacity for manufacturing healthcare-related products.
“The coronavirus situation affected operations in Europe, especially in France and the Czech Republic,” Madsen says. “However, we are seeing a recovery in the automotive industry and the European automotive industry is expected gradually to increase volumes, although at a somewhat lower operational level than anticipated at the start of the year. The wipes, filtration and medical markets have seen gains.”
www.fibertexnonwovens.com
2019 Nonwovens Sales: $269 million
Key Personnel
Jorgen Bech Madsen, CEO; Henrik Kjeldsen, CCO; Lars Bertelsen, COO: Henrik Eigenbrod, CFO; Keld Lauridsen, group R&D director; Bjarne Knudsen, managing director
Plants
Denmark, Czech Republic, U.S., France, Turkey, South Africa, Brazil
Processes
Needlepunch, spunlace, impregnating, coating
Major Markets
Acoustics, automotives, bedding, building, composites, concrete, construction, filtration, flooring, furniture, geotextiles, home and garden, horticulture, medical, wipes
A string of acquisitions has helped boost Fibertex Nonwovens’ sales in recent years and expand its role into a number of markets and regions. Its most recent acquisition, in January 2019, was a U.S.-based spunlace facility from Mogul Nonwovens. The Grey Court, SC site added 14,000 tons of capacity to the company’s global output and is allowing it to target growth in North America. Since acquiring the site, Fibertex has upgraded the spunlace line to add special features and enlarge its product range as well as enter value-added business segments within wipes and medical applications.
In other investment news, Fibertex Nonwovens has upgraded an existing needlepunch line in South Africa and relocated it to North America. The relocation will increase output capacity in North America and support growth while aligning the company’s capacity in South Africa to meet current needs, according to the company.
“By expanding in North America, we continue our very strong development within needlepunch within automotive, building, furniture and bedding, filtration, and industrial markets, while providing for future growth,” says Jorgen Bech Madsen, CEO. “The new state-of-the-art high capacity needlepunch line will provide opportunities to be closer to some customers, offering greater flexibility and capacity as well as sustainable products.”
Fibertex Nonwovens had already produced needlepunched nonwovens in the U.S. at a site outside Chicago, IL, which was acquired from Non Woven Solutions in October 2014. This site largely targets the automotives market.
In 2018, Fibertex Nonwovens expanded its global footprint into Brazil through the acquisition of Duci, a Brazilian-owned manufacturer with a strong potential in the automotives industry. Duci was a maker of spunlaced nonwovens for industrial application, a technology Fibertex Nonwovens already made in France. Incorporating Duci has allowed Fibertex Nonwovens to follow its customers across the Atlantic Ocean by opening doors in South America with products for the composite industry as well as high performance wipes where Fibertex Nonwovens has a strong position in Europe.
Just eight months after purchasing Duci, in early 2019, Fibertex announced it would expand production at the site by 20% to accommodate growing demand for special purpose products for the automotive and other industries. This investment was estimated at DKK15 million. According to Madsen, the company was able to keep production up and running throughout 2020 despite slowdowns in many markets brought on by the coronavirus pandemic.
“We have a strong position in the Brazilian market,” he adds. “In fact, the pandemic brought new customers and new demands for nonwovens.”
In other investment moves, Fibertex has started up nanotechnology applications, restructured production in the Czech Republic and Turkey and optimized production across its European sites. In terms of development and innovation, the company has built a solid portfolio of new projects including new products for automotive and composite industries and for filtration and acoustic purposes, while steadily expanding capacity and upgrading production lines to increase the proportion of value-added products.
For the first half of 2020, a promising start was soon cut short by the impact of the coronavirus in the first quarter. However, Fibertex Nonwovens quickly and successful realigned its production capacity from automotive and industrial purposes to other products in strong demand, thereby increasing its capacity for manufacturing healthcare-related products.
“The coronavirus situation affected operations in Europe, especially in France and the Czech Republic,” Madsen says. “However, we are seeing a recovery in the automotive industry and the European automotive industry is expected gradually to increase volumes, although at a somewhat lower operational level than anticipated at the start of the year. The wipes, filtration and medical markets have seen gains.”
Aalborg, Denmark
www.fibertexpersonalcare.com
2020 Nonwovens Sales: $337 million
Key Personnel
Mikael Staal Axelsen, Group CEO; Peter Andersen, CEO, Malaysia; Claus Svanberg, Group CFO; Carsten Pedersen, Group Print Director
Plants
Denmark, Germany, Malaysia, U.S., North Carolina
Processes
Nonwovens: Spunbond/Spunmelt; Print: Flexographic
Sales and volumes will receive a boost from two major investments at Fibertex Personal Care. The Aalborg, Denmark-based company is investing approximately $40 million to add new lines at its sites in Malaysia and the U.S. The Malaysian site will be expanded with the addition of a specialty nonwovens line while a printing line will be added to the U.S. site in Asheboro, NC. Both lines are expected to begin operations in the second half of 2021.
“Both of our business areas – nonwovens and print on nonwovens – are experiencing an increase in demand for specialty products and services,” says Mikael Staal Axelsen, Group CEO. “We have a strong position in these markets due to our portfolio. Combined with a steady growth in the Asian market, rising demand for print in the American market, and a changed market dynamic caused by Covid-19 makes the timing of the expansions just right.”
Fibertex Personal Care currently operates five lines at two sites in Malaysia, which make about 90,000 tons of capacity, as well as three lines in Denmark. Its most recent line came onstream in Malaysia in mid-2017.
“All reports indicate that the growth rates in Asia will remain strong,” Axelsen says. “Additionally, we continue to see the continuation in demand for soft materials and other products that offer other means of differentiation. Everyone wants their own solutions and you are going to see more new nonwovens products than you did in the past.”
Meanwhile, in the U.S. Fibertex Personal Care introduced print production three years ago and continues to experience increased demand for printing on nonwovens. The company began print production through a joint venture Innowo Print in Germany in 2008. It purchased a full stake in the company in 2014 and currently has operations in Germany, Malaysia and the U.S.
“The introduction of print production in the U.S. three years ago was an important strategic milestone for us, and as expected the market now demands new capacity, “Axelsen says. “This gives us the opportunity to engage in more development projects with our customers. We have the skills and now the capacity.”
In addition to expansion, Fibertex Personal Care continues to focus on sustainability. In late 2020, the company announced a partnership with SABIC, a global leader in the chemicals industry, to create a range of nonwovens using high-purity recycled plastics from Sabic’s Trucircle portfolio and services. They have developed the first reported nonwovens range based on recycled plastics in the hygiene industry. The initiative is seen by the two partners as an exciting step towards a more sustainable supply chain and greater recyclability for nonwovens.
The new material can be used as a drop-in solution while meeting the brand owner’s requirements for purity and consumer safety for the hygiene industry applications, and Fibertex will provide certified circular nonwovens to its customers with its Comfort, Elite, Dual and Loft product range. These certified nonwovens can be adopted in downstream processes, without compromising convertibility, product properties or performance of the final product.
“This is an important step forward in supporting our sustainable strategy and important step in development and expansion of a supply chain for bio-based and circular polymers. SABIC’s Trucircle initiative makes this possible,” Axelsen says. “We are proud to cooperate with SABIC in developing the first circular nonwovens for the hygiene market.”
Fibertex Personal Care has also achieved ISCC PLUS certification which verifies that mass balance accounting follows predefined and transparent rules. In addition, it provides traceability along the supply chain, from the feedstock to the final product.
Looking back to 2020, sales decreased slightly to $337 million (DKK 2118 million), reflecting a slight increase in Malaysia and a small drop in Denmark. While the nonwovens industry continues to see strong demand in personal protective apparel, Fibertex continues to focus on hygiene. “Our investments respond to general market growth. We have been benefitting from a very strong demand for hygiene, particularly in Asia,” Axelsen says. “As our competitors especially in China focused on PPE, it has created new demand for hygiene from us.”
www.fibertexpersonalcare.com
2020 Nonwovens Sales: $337 million
Key Personnel
Mikael Staal Axelsen, Group CEO; Peter Andersen, CEO, Malaysia; Claus Svanberg, Group CFO; Carsten Pedersen, Group Print Director
Plants
Denmark, Germany, Malaysia, U.S., North Carolina
Processes
Nonwovens: Spunbond/Spunmelt; Print: Flexographic
Sales and volumes will receive a boost from two major investments at Fibertex Personal Care. The Aalborg, Denmark-based company is investing approximately $40 million to add new lines at its sites in Malaysia and the U.S. The Malaysian site will be expanded with the addition of a specialty nonwovens line while a printing line will be added to the U.S. site in Asheboro, NC. Both lines are expected to begin operations in the second half of 2021.
“Both of our business areas – nonwovens and print on nonwovens – are experiencing an increase in demand for specialty products and services,” says Mikael Staal Axelsen, Group CEO. “We have a strong position in these markets due to our portfolio. Combined with a steady growth in the Asian market, rising demand for print in the American market, and a changed market dynamic caused by Covid-19 makes the timing of the expansions just right.”
Fibertex Personal Care currently operates five lines at two sites in Malaysia, which make about 90,000 tons of capacity, as well as three lines in Denmark. Its most recent line came onstream in Malaysia in mid-2017.
“All reports indicate that the growth rates in Asia will remain strong,” Axelsen says. “Additionally, we continue to see the continuation in demand for soft materials and other products that offer other means of differentiation. Everyone wants their own solutions and you are going to see more new nonwovens products than you did in the past.”
Meanwhile, in the U.S. Fibertex Personal Care introduced print production three years ago and continues to experience increased demand for printing on nonwovens. The company began print production through a joint venture Innowo Print in Germany in 2008. It purchased a full stake in the company in 2014 and currently has operations in Germany, Malaysia and the U.S.
“The introduction of print production in the U.S. three years ago was an important strategic milestone for us, and as expected the market now demands new capacity, “Axelsen says. “This gives us the opportunity to engage in more development projects with our customers. We have the skills and now the capacity.”
In addition to expansion, Fibertex Personal Care continues to focus on sustainability. In late 2020, the company announced a partnership with SABIC, a global leader in the chemicals industry, to create a range of nonwovens using high-purity recycled plastics from Sabic’s Trucircle portfolio and services. They have developed the first reported nonwovens range based on recycled plastics in the hygiene industry. The initiative is seen by the two partners as an exciting step towards a more sustainable supply chain and greater recyclability for nonwovens.
The new material can be used as a drop-in solution while meeting the brand owner’s requirements for purity and consumer safety for the hygiene industry applications, and Fibertex will provide certified circular nonwovens to its customers with its Comfort, Elite, Dual and Loft product range. These certified nonwovens can be adopted in downstream processes, without compromising convertibility, product properties or performance of the final product.
“This is an important step forward in supporting our sustainable strategy and important step in development and expansion of a supply chain for bio-based and circular polymers. SABIC’s Trucircle initiative makes this possible,” Axelsen says. “We are proud to cooperate with SABIC in developing the first circular nonwovens for the hygiene market.”
Fibertex Personal Care has also achieved ISCC PLUS certification which verifies that mass balance accounting follows predefined and transparent rules. In addition, it provides traceability along the supply chain, from the feedstock to the final product.
Looking back to 2020, sales decreased slightly to $337 million (DKK 2118 million), reflecting a slight increase in Malaysia and a small drop in Denmark. While the nonwovens industry continues to see strong demand in personal protective apparel, Fibertex continues to focus on hygiene. “Our investments respond to general market growth. We have been benefitting from a very strong demand for hygiene, particularly in Asia,” Axelsen says. “As our competitors especially in China focused on PPE, it has created new demand for hygiene from us.”
Aalborg, Denmark
www.fibertexnonwovens.com
2020 Nonwovens Sales: $285 million
Key Personnel
Jorgen Bech Madsen, CEO; Henrik Kjeldsen, CCO; Lars Bertelsen, COO: Steen Bach Svoldgaard, CFO; Lancelot Woolley, Group R&D director; Bjarne Knudsen, managing director
Plants
Denmark, Czech Republic, U.S., France, Turkey, South Africa, Brazil
Processes
Needlepunch, spunlace, impregnating, coating
Major Markets
Acoustics, automotives, bedding, building, composites, concrete, construction, filtration, flooring, furniture, geotextiles, home and garden, horticulture, wipes
Investments on both sides of the Atlantic will set up Fibertex Nonwovens, headquartered in Aalborg, Denmark, for significant growth. The company is investing DKK 600 million in a series of investments at its sites in the Czech Republic, Turkey and the U.S.
In spring 2021, Fibertex Nonwovens said it would add capacity and increase capabilities at its sites in South Carolina, the Czech Republic and Turkey as part of a plan to drive its sales to $400 million by 2026 from $285 million in 2020.
“Demand for our nonwovens has increased significantly in recent years. It concerns particularly the more specialized applications and high-performance materials for the healthcare sector, industrial products, specialist acoustic products for the automotive industry, nanofiltration for industrial purposes, etc.,” says Jorgen Bech Madsen, CEO. “Our business development and research activities over the past 10 years have afforded us a leading position in both Europe and the U.S. and this is the direct reason for the investment.”
Much of the North American investment will involve land acquisition as well as the construction of a new spunlace line at its site in Grey Court, SC. This new line is described as a high capacity, state-of-the-art spunlace line which will allow the company to process sustainable materials and make unique substrates. Fibertex purchased the South Carolina site in early 2019 and added a spunlace line in 2019 and a needlepunch line—which was relocated from South Africa— in 2020. The company expects to increase revenue from its U.S. operations, which also includes a needlepunch operation in Illinois, to more than DKK 1 billion, or $160 million, within a few years.
In Europe, Fibertex Nonwovens is adding a spunlace line in Svitavy, Czech Republic, as part of its European investment program. This program also includes increased capacity as well as the addition of finishing and coating lines at its site in Turkey. These investments will help target growth in the disinfectant wipes and healthcare sectors.
“We’ve got a lean and high-tech production setup with clear focus on innovation, and the new production line is to serve the huge demand for disinfection wipes from the healthcare sector,” Bech Madsen says. “This demand was rising even before the coronavirus pandemic, but we expect it to increase even further in the coming years. With this new investment, we’ll be able to offer new and sustainable product properties that’ll help meet the demands of the future in this field. At the same time, we’re freeing up capacity at several of our other European plants, allowing us to explore new opportunities within the manufacture of acoustic products for the automotive industry and products for filtration.”
In recent years, Fibertex Nonwovens has expanded its global footprint through the acquisition of the Turkish site from Ribatek Nonwovens as well as manufacturing assets in France, the Czech Republic, Brazil and the U.S., and has established a greenfield site in South Africa.
“It’s crucial that we take advantage of the current momentum to strengthen our position. There’s an ‘open window’ for expansion and we’ve got the resources to take advantage of the opportunities,” says Jens Bjerg Sørensen, president and CEO of parent company Schouw & Co. “Fibertex Nonwovens has huge potential and with the new investments in both the US and Europe, it can significantly increase its revenue and earnings.”
www.fibertexnonwovens.com
2020 Nonwovens Sales: $285 million
Key Personnel
Jorgen Bech Madsen, CEO; Henrik Kjeldsen, CCO; Lars Bertelsen, COO: Steen Bach Svoldgaard, CFO; Lancelot Woolley, Group R&D director; Bjarne Knudsen, managing director
Plants
Denmark, Czech Republic, U.S., France, Turkey, South Africa, Brazil
Processes
Needlepunch, spunlace, impregnating, coating
Major Markets
Acoustics, automotives, bedding, building, composites, concrete, construction, filtration, flooring, furniture, geotextiles, home and garden, horticulture, wipes
Investments on both sides of the Atlantic will set up Fibertex Nonwovens, headquartered in Aalborg, Denmark, for significant growth. The company is investing DKK 600 million in a series of investments at its sites in the Czech Republic, Turkey and the U.S.
In spring 2021, Fibertex Nonwovens said it would add capacity and increase capabilities at its sites in South Carolina, the Czech Republic and Turkey as part of a plan to drive its sales to $400 million by 2026 from $285 million in 2020.
“Demand for our nonwovens has increased significantly in recent years. It concerns particularly the more specialized applications and high-performance materials for the healthcare sector, industrial products, specialist acoustic products for the automotive industry, nanofiltration for industrial purposes, etc.,” says Jorgen Bech Madsen, CEO. “Our business development and research activities over the past 10 years have afforded us a leading position in both Europe and the U.S. and this is the direct reason for the investment.”
Much of the North American investment will involve land acquisition as well as the construction of a new spunlace line at its site in Grey Court, SC. This new line is described as a high capacity, state-of-the-art spunlace line which will allow the company to process sustainable materials and make unique substrates. Fibertex purchased the South Carolina site in early 2019 and added a spunlace line in 2019 and a needlepunch line—which was relocated from South Africa— in 2020. The company expects to increase revenue from its U.S. operations, which also includes a needlepunch operation in Illinois, to more than DKK 1 billion, or $160 million, within a few years.
In Europe, Fibertex Nonwovens is adding a spunlace line in Svitavy, Czech Republic, as part of its European investment program. This program also includes increased capacity as well as the addition of finishing and coating lines at its site in Turkey. These investments will help target growth in the disinfectant wipes and healthcare sectors.
“We’ve got a lean and high-tech production setup with clear focus on innovation, and the new production line is to serve the huge demand for disinfection wipes from the healthcare sector,” Bech Madsen says. “This demand was rising even before the coronavirus pandemic, but we expect it to increase even further in the coming years. With this new investment, we’ll be able to offer new and sustainable product properties that’ll help meet the demands of the future in this field. At the same time, we’re freeing up capacity at several of our other European plants, allowing us to explore new opportunities within the manufacture of acoustic products for the automotive industry and products for filtration.”
In recent years, Fibertex Nonwovens has expanded its global footprint through the acquisition of the Turkish site from Ribatek Nonwovens as well as manufacturing assets in France, the Czech Republic, Brazil and the U.S., and has established a greenfield site in South Africa.
“It’s crucial that we take advantage of the current momentum to strengthen our position. There’s an ‘open window’ for expansion and we’ve got the resources to take advantage of the opportunities,” says Jens Bjerg Sørensen, president and CEO of parent company Schouw & Co. “Fibertex Nonwovens has huge potential and with the new investments in both the US and Europe, it can significantly increase its revenue and earnings.”
Aalborg, Denmark
www.fibertexpersonalcare.com
2021 Nonwovens Sales: $330 million
Key Personnel
Mikael Staal Axelsen, group CEO; Peter Andersen, CEO, Malaysia; Claus Svanberg, group CFO; Carsten Pedersen, group print director
Plants
Denmark, Germany, Malaysia, North Carolina, U.S.
Processes
Nonwovens: Spunbond/Spunmelt; Print: Flexographic
Sales were up in terms of dollars but down in terms of volume at Fibertex Personal Care. The Denmark-based nonwovens producer reported sales increased 6% to reach DKK2,249 million ($330 million) thanks to higher raw material pricing which triggered higher sales prices. Volumes, however, decreased due to logistical challenges in Asia, where domestically made products, normally sold to Europe and the U.S., were targeted at local markets.
“The (Asian) market is very soft due to lower growth than expected combined with new investments and challenges exporting due to the freight situation,” says Mikael Staal Axelson, group CEO.
With nonwovens production sites in Denmark and Malaysia, Fibertex Personal Care continues to invest. The company is currently adding its sixth production line in Malaysia, where it has two plants. The line, a state-of-the-art Reicofil line, will not only expand the company’s manufacturing capacity, it also will enable it to offer some specialty products, to its hygiene customers.
“Our focus on offering the customers a broad selection of specialty products and services continues to be a high priority for our business and, as the leading nonwovens manufacturer in Asia, we will continue to invest in increasing capacity at our Malaysian site,” Axelsen says.
Announced in late 2020, this line was expected to be operational in late 2021, but Covid-related delays have pushed the start-up to the second half of 2022.
Following the completion of the latest line, Fibertex Personal Care will have nine spunmelt lines—six in Malaysia and three in Denmark—each producing very thin, high quality nonwovens. Each line has its own specialty, ranging from manufacturing soft products, products with high-performance leakage barriers and 3D effect products to thin and lightweight products.
In other investment news, Fibertex Personal Care has started up a second printing line at its North Carolina operation, its Innowo Print business. The first to offer print directly on lightweight nonwovens for hygiene, the company now has operations in Germany and Malaysia, in addition to the U.S.
“We do see high interest in this specialty area,” Axelsen says. “It will remain a niche that requires high expertise to produce.”
Additionally, sustainability continues to be a focus for Fibertex Personal Care. In June, the company achieved Gold Medal status from EcoVadis – for its CSR performance with a score of 67/100. Additionally, its facilities in Germany, the U.S. and Malaysia have achieved the prestigious EcoVadis Silver Medals.
This is the first time that Fibertex Personal Care has been assessed by EcoVadis, and the score obtained by Fibertex Personal Care A/S puts it in the Top 7% of the best performing companies out of more than 90,000 companies assessed by EcoVadis.
Additionally, the company has ISCC Plus certifications in both Denmark and Malaysia to offer its customers more sustainable choices when it comes to nonwovens. The system makes it possible to track the amount and sustainability characteristics of circular and/or bio-based content in the value chain and attribute it based on verifiable bookkeeping with predefined and transparent rules.
For Fibertex Personal Care's 2020 top company profile, click here.
www.fibertexpersonalcare.com
2021 Nonwovens Sales: $330 million
Key Personnel
Mikael Staal Axelsen, group CEO; Peter Andersen, CEO, Malaysia; Claus Svanberg, group CFO; Carsten Pedersen, group print director
Plants
Denmark, Germany, Malaysia, North Carolina, U.S.
Processes
Nonwovens: Spunbond/Spunmelt; Print: Flexographic
Sales were up in terms of dollars but down in terms of volume at Fibertex Personal Care. The Denmark-based nonwovens producer reported sales increased 6% to reach DKK2,249 million ($330 million) thanks to higher raw material pricing which triggered higher sales prices. Volumes, however, decreased due to logistical challenges in Asia, where domestically made products, normally sold to Europe and the U.S., were targeted at local markets.
“The (Asian) market is very soft due to lower growth than expected combined with new investments and challenges exporting due to the freight situation,” says Mikael Staal Axelson, group CEO.
With nonwovens production sites in Denmark and Malaysia, Fibertex Personal Care continues to invest. The company is currently adding its sixth production line in Malaysia, where it has two plants. The line, a state-of-the-art Reicofil line, will not only expand the company’s manufacturing capacity, it also will enable it to offer some specialty products, to its hygiene customers.
“Our focus on offering the customers a broad selection of specialty products and services continues to be a high priority for our business and, as the leading nonwovens manufacturer in Asia, we will continue to invest in increasing capacity at our Malaysian site,” Axelsen says.
Announced in late 2020, this line was expected to be operational in late 2021, but Covid-related delays have pushed the start-up to the second half of 2022.
Following the completion of the latest line, Fibertex Personal Care will have nine spunmelt lines—six in Malaysia and three in Denmark—each producing very thin, high quality nonwovens. Each line has its own specialty, ranging from manufacturing soft products, products with high-performance leakage barriers and 3D effect products to thin and lightweight products.
In other investment news, Fibertex Personal Care has started up a second printing line at its North Carolina operation, its Innowo Print business. The first to offer print directly on lightweight nonwovens for hygiene, the company now has operations in Germany and Malaysia, in addition to the U.S.
“We do see high interest in this specialty area,” Axelsen says. “It will remain a niche that requires high expertise to produce.”
Additionally, sustainability continues to be a focus for Fibertex Personal Care. In June, the company achieved Gold Medal status from EcoVadis – for its CSR performance with a score of 67/100. Additionally, its facilities in Germany, the U.S. and Malaysia have achieved the prestigious EcoVadis Silver Medals.
This is the first time that Fibertex Personal Care has been assessed by EcoVadis, and the score obtained by Fibertex Personal Care A/S puts it in the Top 7% of the best performing companies out of more than 90,000 companies assessed by EcoVadis.
Additionally, the company has ISCC Plus certifications in both Denmark and Malaysia to offer its customers more sustainable choices when it comes to nonwovens. The system makes it possible to track the amount and sustainability characteristics of circular and/or bio-based content in the value chain and attribute it based on verifiable bookkeeping with predefined and transparent rules.
For Fibertex Personal Care's 2020 top company profile, click here.
Aalborg, Denmark
www.fibertexnonwovens.com
2021 Nonwovens Sales: $266 million
Key Personnel
Jorgen Bech Madsen, CEO; Henrik Kjeldsen, CCO; Lars Bertelsen, COO: Steen Bach Svoldgaard, CFO; Lancelot Woolley, group R&D director; Bjarne Knudsen, managing director; Carlos Benatto, president, Fibertex North America; Randy Blasczyk, general manager North American Needlepunch; Jonathan Layer, director of Commercial Business Development
Plants
Denmark, Czech Republic, U.S., France, Turkey, South Africa, Brazil
Processes
Needlepunch, spunlace, impregnating, coating
Despite a sharp slowdown in sales during the second half, Fibertex Nonwovens was able to grow its 2021 sales from DKK1,791 million to DKK1,814 million ($266 million) thanks to strong sales of wipes and filtration products in North America during the first half of the year as well as higher selling prices. This growth came to a halt in the second part of the year.
As these challenges continue into 2022, Fibertex Nonwovens continues to focus on the future with large-scale investments at its sites in North America and Europe, which are intended to drive its sales above $400 million by 2026.
In North America, Fibertex Nonwovens announced last year it would invest in additional land as well as a new spunlace line at its facility in Grey Court, SC, which already houses spunlace and needlepunch equipment. The new spunlace line is a high-capacity, state-of-the-art line which will allow the company to process sustainable materials and make unique substrates. Fibertex purchased the South Carolina site in early 2019.
In August 2022, the company announced it would restructure its North American business into two divisions—spunlace and needlepunch—to better focus on the specific needs of its core businesses and key technologies.
Investment is also a focus in Fibertex Nonwovens’ European business where it is adding a spunlace line in Svitavy, Czech Republic, as part of a comprehensive investment program. This program also includes increased capacity as well as the addition of finishing and coating lines at its site in Turkey, which specializes in spunlacing. These investments will help target growth in the disinfectant wipes and healthcare sectors while also allowing the company to offer new and sustainable product properties that will help meet demands in the future. The new lines will also free up capacity on some existing lines in Europe to allow room for exploring new opportunities in areas like acoustics for automotive and filtration media.
Fibertex Nonwovens announced both investments in early 2021, reporting that demand for its nonwovens has increased significantly in recent years, particularly substrates for more specialized applications and high performance materials for the healthcare sector, industrial products, acoustics for automotive and nanofiltration.
For Fibertex Nonwovens' 2020 top company profile, click here.
www.fibertexnonwovens.com
2021 Nonwovens Sales: $266 million
Key Personnel
Jorgen Bech Madsen, CEO; Henrik Kjeldsen, CCO; Lars Bertelsen, COO: Steen Bach Svoldgaard, CFO; Lancelot Woolley, group R&D director; Bjarne Knudsen, managing director; Carlos Benatto, president, Fibertex North America; Randy Blasczyk, general manager North American Needlepunch; Jonathan Layer, director of Commercial Business Development
Plants
Denmark, Czech Republic, U.S., France, Turkey, South Africa, Brazil
Processes
Needlepunch, spunlace, impregnating, coating
Despite a sharp slowdown in sales during the second half, Fibertex Nonwovens was able to grow its 2021 sales from DKK1,791 million to DKK1,814 million ($266 million) thanks to strong sales of wipes and filtration products in North America during the first half of the year as well as higher selling prices. This growth came to a halt in the second part of the year.
As these challenges continue into 2022, Fibertex Nonwovens continues to focus on the future with large-scale investments at its sites in North America and Europe, which are intended to drive its sales above $400 million by 2026.
In North America, Fibertex Nonwovens announced last year it would invest in additional land as well as a new spunlace line at its facility in Grey Court, SC, which already houses spunlace and needlepunch equipment. The new spunlace line is a high-capacity, state-of-the-art line which will allow the company to process sustainable materials and make unique substrates. Fibertex purchased the South Carolina site in early 2019.
In August 2022, the company announced it would restructure its North American business into two divisions—spunlace and needlepunch—to better focus on the specific needs of its core businesses and key technologies.
Investment is also a focus in Fibertex Nonwovens’ European business where it is adding a spunlace line in Svitavy, Czech Republic, as part of a comprehensive investment program. This program also includes increased capacity as well as the addition of finishing and coating lines at its site in Turkey, which specializes in spunlacing. These investments will help target growth in the disinfectant wipes and healthcare sectors while also allowing the company to offer new and sustainable product properties that will help meet demands in the future. The new lines will also free up capacity on some existing lines in Europe to allow room for exploring new opportunities in areas like acoustics for automotive and filtration media.
Fibertex Nonwovens announced both investments in early 2021, reporting that demand for its nonwovens has increased significantly in recent years, particularly substrates for more specialized applications and high performance materials for the healthcare sector, industrial products, acoustics for automotive and nanofiltration.
For Fibertex Nonwovens' 2020 top company profile, click here.
Aalborg, Denmark
www.fibertexpersonalcare.com
2022 Nonwovens Sales: $361 million
Key Personnel
Mikael Staal Axelsen, Group CEO; Peter Andersen, CEO, Malaysia; Claus Svanberg, Group CFO; Carsten Pedersen, Group Print Director.
Plants
Denmark, Germany, Malaysia, North Carolina, U.S.
Processes
Nonwovens: Spunbond/Spunmelt; Print: Flexographic
Full year sales increased 9% to DKK2454 million ($361 million) thanks to higher raw material prices, which led to higher selling prices. Meanwhile earnings were approximately 15%. Sales were up in terms of dollars but down in terms of volume at Fibertex Personal Care.
While raw material pricing helped drive up sales, lower demand for nonwovens and printing services at the company’s Malaysian sites decreased amidst tougher competition in the region.
Fibertex Personal Care is currently adding its sixth production line in Malaysia, where it has two plants. The line, a state-of-the-art Reicofil line, will not only expand the company’s manufacturing capacity, it also will enable it to offer some specialty products, to its hygiene customers. Technical challenges have delayed start-up of the new line but executives expect it should be up and running by the end of the year.
Output from all Fibertex Personal Care lines, which also includes a Denmark operation, produce very thin, high quality nonwovens. As part of the company’s sustainability initiatives, researchers continue to focus on thinner and lighter materials that don’t sacrifice performance or quality. Earlier this year, the company introduced an extremely thin, 5gsm spunmelt nonwoven. With this Elite Strength material, Fibertex Personal Care has managed to significantly increase tensile performance versus basis weight compared to traditional low basis-weight nonwovens. Originally targeting core applications, the material is also applicable for other hygiene applications such as chassis and leg cuffs.
In addition to lessening material impact, the nonwovens reduces CO2 footprint as well as freight and handling costs. “The biggest impact our material can do toward sustainability is to reduce the material usages, support bio sources and increase recycling and we are actively working on all fronts,” says group CEO Mikael Staal Axelsen.
The company’s Denmark factory achieved ISCC Plus certification in 2020, making it the world’s first producer of nonwovens for hygiene and medical applications. Shortly after, the Malaysian factory obtained same certification. In June 2022, Fibertex Personal Care announced it had started supplying large quantities of ISCC Plus certified nonwovens for diapers. These bio-based nonwoven solutions supports the ambitious goals for CO2 reductions. “Since we first launched – and were certified to supply—nonwovens solutions fulfilling these demands two years ago, the market has experienced an increased awareness of environmentally friendly products influencing the demand for sustainable nonwoven solutions positively,” says Axelsen CEO.
Beyond nonwovens production, Fibertex Personal Care also operates nonwovens printing business known as Innowo Print. Last year, the company started up a second printing line at its North Carolina site; other operations are up and running in Germany and Malaysia. Due to current demand trends, Innowo Print is likely allocating less capacity to Asia and more to the U.S. market where print services are in demand for more applications beyond hygiene such as absorbent pads for pets, according to executives
www.fibertexpersonalcare.com
2022 Nonwovens Sales: $361 million
Key Personnel
Mikael Staal Axelsen, Group CEO; Peter Andersen, CEO, Malaysia; Claus Svanberg, Group CFO; Carsten Pedersen, Group Print Director.
Plants
Denmark, Germany, Malaysia, North Carolina, U.S.
Processes
Nonwovens: Spunbond/Spunmelt; Print: Flexographic
Full year sales increased 9% to DKK2454 million ($361 million) thanks to higher raw material prices, which led to higher selling prices. Meanwhile earnings were approximately 15%. Sales were up in terms of dollars but down in terms of volume at Fibertex Personal Care.
While raw material pricing helped drive up sales, lower demand for nonwovens and printing services at the company’s Malaysian sites decreased amidst tougher competition in the region.
Fibertex Personal Care is currently adding its sixth production line in Malaysia, where it has two plants. The line, a state-of-the-art Reicofil line, will not only expand the company’s manufacturing capacity, it also will enable it to offer some specialty products, to its hygiene customers. Technical challenges have delayed start-up of the new line but executives expect it should be up and running by the end of the year.
Output from all Fibertex Personal Care lines, which also includes a Denmark operation, produce very thin, high quality nonwovens. As part of the company’s sustainability initiatives, researchers continue to focus on thinner and lighter materials that don’t sacrifice performance or quality. Earlier this year, the company introduced an extremely thin, 5gsm spunmelt nonwoven. With this Elite Strength material, Fibertex Personal Care has managed to significantly increase tensile performance versus basis weight compared to traditional low basis-weight nonwovens. Originally targeting core applications, the material is also applicable for other hygiene applications such as chassis and leg cuffs.
In addition to lessening material impact, the nonwovens reduces CO2 footprint as well as freight and handling costs. “The biggest impact our material can do toward sustainability is to reduce the material usages, support bio sources and increase recycling and we are actively working on all fronts,” says group CEO Mikael Staal Axelsen.
The company’s Denmark factory achieved ISCC Plus certification in 2020, making it the world’s first producer of nonwovens for hygiene and medical applications. Shortly after, the Malaysian factory obtained same certification. In June 2022, Fibertex Personal Care announced it had started supplying large quantities of ISCC Plus certified nonwovens for diapers. These bio-based nonwoven solutions supports the ambitious goals for CO2 reductions. “Since we first launched – and were certified to supply—nonwovens solutions fulfilling these demands two years ago, the market has experienced an increased awareness of environmentally friendly products influencing the demand for sustainable nonwoven solutions positively,” says Axelsen CEO.
Beyond nonwovens production, Fibertex Personal Care also operates nonwovens printing business known as Innowo Print. Last year, the company started up a second printing line at its North Carolina site; other operations are up and running in Germany and Malaysia. Due to current demand trends, Innowo Print is likely allocating less capacity to Asia and more to the U.S. market where print services are in demand for more applications beyond hygiene such as absorbent pads for pets, according to executives
Aalborg, Denmark
www.fibertexnonwovens.com
2022 Nonwovens Sales: $303 million
Key Personnel
Jorgen Bech Madsen, CEO; Henrik Kjeldsen, CCO; Lars Bertelsen, COO; Steen Bach Svoldgaard, CFO; Lancelot Woolley, group R&D director; Bjarne Knudsen, managing director; Carlos Benatto, president, Fibertex North America; Randy Blasczyk, general manager North American Needlepunch; Jonathan Layer, director of Commercial Business Development
Plants
Denmark, Czech Republic, U.S., France, Turkey, South Africa, Brazil
Processes
Needlepunch, spunlace, impregnating, coating
Global investment continues to be a winning strategy for Fibertex Nonwovens. The Danish nonwovens producer recently completed work on a state-of-the-art spunlace line at its Grey Court, SC facility and is planning to finish work on a similar line in the Czech Republic some time next year. These two new lines were part of a global investment strategy, announced in early 2021, aimed at bringing the company’s sales above $400 million by 2026. In addition to the two spunlace lines, this plan includes the addition of finishing and coating lines at its site in Turkey, which specializes in spunlacing.
These investments will mainly help target growth in the disinfectant wipes and healthcare sectors while also allowing the company to offer new and sustainable product properties that will help meet demands in the future. The new lines will also free up capacity on some existing lines in Europe to allow room for exploring new opportunities in areas like acoustics for automotive and filtration media.
“The new lines offer a lot of new capabilities like the ability to process alternative materials,” says CEO Jorgen Bech Madsen. “Having more modern lines allows us to be more competitive.”
Also benefitting Fibertex is its presence in many business areas. The company’s capacity is split evenly between spunlace and needlepunch, which allows it to target a number of technical applications. “Because we are in so many areas, we are always busy somewhere,” Madsen says.
Looking back to 2022, Fibertex Nonwovens reported sales of $303 million, up from $275 million the 2021, despite sales imbalances, high raw material and energy costs and a slowdown in demand, which began in the second half of 2021 and continued during 2022, presenting challenges for the company.
“Last year for wipes was terrible but the market is coming back,” Madsen says. “We can process a lot of different types of fibers which has helped us meet increased demand for sustainability.”
Efforts to be more sustainable and help its customers in these efforts extend beyond wipes. For example, Fibertex’s E-Flow HVAC system can save a building 67% of its energy consumption, which is a major win because HVAC is a major energy consumer in building systems, Madsen says. Other key technical areas for Fibertex include acoustics, automotives, building and civil engineering.
“The business is now split evenly between needlepunch and spunlace but we are investing in both technologies,” Madsen adds. “Fibertex Nonwovens is a good combination of innovation and state-of-the-art lines that we have been investing in over the years.
www.fibertexnonwovens.com
2022 Nonwovens Sales: $303 million
Key Personnel
Jorgen Bech Madsen, CEO; Henrik Kjeldsen, CCO; Lars Bertelsen, COO; Steen Bach Svoldgaard, CFO; Lancelot Woolley, group R&D director; Bjarne Knudsen, managing director; Carlos Benatto, president, Fibertex North America; Randy Blasczyk, general manager North American Needlepunch; Jonathan Layer, director of Commercial Business Development
Plants
Denmark, Czech Republic, U.S., France, Turkey, South Africa, Brazil
Processes
Needlepunch, spunlace, impregnating, coating
Global investment continues to be a winning strategy for Fibertex Nonwovens. The Danish nonwovens producer recently completed work on a state-of-the-art spunlace line at its Grey Court, SC facility and is planning to finish work on a similar line in the Czech Republic some time next year. These two new lines were part of a global investment strategy, announced in early 2021, aimed at bringing the company’s sales above $400 million by 2026. In addition to the two spunlace lines, this plan includes the addition of finishing and coating lines at its site in Turkey, which specializes in spunlacing.
These investments will mainly help target growth in the disinfectant wipes and healthcare sectors while also allowing the company to offer new and sustainable product properties that will help meet demands in the future. The new lines will also free up capacity on some existing lines in Europe to allow room for exploring new opportunities in areas like acoustics for automotive and filtration media.
“The new lines offer a lot of new capabilities like the ability to process alternative materials,” says CEO Jorgen Bech Madsen. “Having more modern lines allows us to be more competitive.”
Also benefitting Fibertex is its presence in many business areas. The company’s capacity is split evenly between spunlace and needlepunch, which allows it to target a number of technical applications. “Because we are in so many areas, we are always busy somewhere,” Madsen says.
Looking back to 2022, Fibertex Nonwovens reported sales of $303 million, up from $275 million the 2021, despite sales imbalances, high raw material and energy costs and a slowdown in demand, which began in the second half of 2021 and continued during 2022, presenting challenges for the company.
“Last year for wipes was terrible but the market is coming back,” Madsen says. “We can process a lot of different types of fibers which has helped us meet increased demand for sustainability.”
Efforts to be more sustainable and help its customers in these efforts extend beyond wipes. For example, Fibertex’s E-Flow HVAC system can save a building 67% of its energy consumption, which is a major win because HVAC is a major energy consumer in building systems, Madsen says. Other key technical areas for Fibertex include acoustics, automotives, building and civil engineering.
“The business is now split evenly between needlepunch and spunlace but we are investing in both technologies,” Madsen adds. “Fibertex Nonwovens is a good combination of innovation and state-of-the-art lines that we have been investing in over the years.
