Jacob Holm


Location: Jyderup, Denmark

Sales: $60 million

Description: Key Personnel
Poul Mikkelsen, CEO; Peter Stoffel, COO; Michael Steen Lunde, vice president, business development; Jos van Hattum, sales director; Bruno Guyomard, research and development manager

Plants
Soultz, France; Mildenau, Germany

Processes
Hydroentangling, needlepunch

Brand Names
Norafin, Lidro, Rough n’ Soft

Major Markets
Cosmetics/hygiene, household, industrial, medical

New to this year’s top company report is roll goods producer Jacob Holm Industries, Jyderup, Denmark. With annual roll goods sales of $60 million, Jacob Holm specializes in hydroentangled and needlepunched nonwovens for wiping applications in a variety of markets. Jacob Holm Industries was founded in 1995 when parent company Jacob Holm & Sons entered the nonwovens industry.
 
While Jacob Holm’s nonwovens production initially centered around thermal bonded materials for acquisition and distribution layers, the company soon determined that spunlaced was a more viable market. During 1998-1999, Jacob Holm reconfigured its equipment to produce spunlaced nonwovens for baby wipe applications. Jacob Holm expanded its spunlaced production and entered the needlepunched market in 2000 when it purchased Norafin, Mildenau, Germany, a producer of spunlaced and needlepunched nonwovens.
 
The acquisition of Norafin as well as the addition of a second spunlaced line in early 2001 helped to transform Jacob Holm into one of Europe’s leading suppliers of nonwovens targeting baby wipes as well as other wiping applications and medical products. Last year, the company achieved roll goods sales of approximately $60 million. Currently, 70% of sales are conducted in Western Europe while the remainder are split between North America and Asia. Jacob Holm operates two plants, one in Soultz, France and the other in Mildenau, Germany, which are able to serve its customers globally.
 
While spunlace capacity in Europe is at an all-time high, Jacob Holm has not felt the ill effects of a weakened economy. “Our perception of the market is that customers are considering wipe products to be something they need to have,” Mr. Lunde said.

“They are buying these products regardless of economic conditions.” To date, the only segment where executives have noticed a decline is in the airline industry, where the company supplies wipes to many of the major carriers in Europe.
 
While the bulk of Jacob Holm’s wipes business targets baby care applications, the company is seeing strong growth in wipes for household, cosmetic and industrial uses. These emerging markets have been targeted with differentiated products that are able to achieve more than one function per use. “Our customers are showing an increased focus on quality and placing stringent requirements on our products,” Mr. Lunde said. “These products need to do more than just wipe something. They need to offer something else to find a place in more interesting markets.”
 
Jacob Holm’s focus on new product development has led to the introduction of several new products in recent months. Most recently, the company’s Duplex product, a spunlaced nonwoven laminated to a polyethylene film targeting protective applications in the medical, hygiene and cosmetic segments, was launched in April. Also in April, Jacob Holm introduced Bi-Active, a wipe comprising a soft side and a rough side that is ideal for cleaning and cosmetic applications.
 
These two products join Jacob Holm’s Rough n’ Soft three layered nonwoven material, a three-layered nonwoven material made entirely from spunlaced nonwovens. Like Bi-Activ, this product also features a rough side and a softer side to target cosmetic and household areas. Additionally, for the cosmetic and household cleaning markets, the company’s Triplex features a three-layer sandwich construction with a layer of film positioned between two spunlaced layers.
 
Because many of its products are made from composite structures, Jacob Holm has had to form several partnerships with other companies to use their materials. While executives declined to name these companies, they did admit that these collaborations are vital to the business. “Jacob Holm is aggressively pursuing the composites market,” Mr. Lunde ex­plained. “This further stren­g­thens our relationship with key players in the segments where we are active and enables us to present new product solutions to our customers at frequent intervals.”
 
These new products and collaborations result from a company-wide goal of broadening its product portfolio. “We will keep on working with our current customers to expand our existing products,” Mr. Lunde said. “We will focus on the areas where we think we can make a difference.”
Location: Jyderup, Denmark

Sales: $65 million

Description: Jacob Holm Industries (France) SAS
Soultz, France
Tel: 33-389-74-6500

Jacob Holm Industries (Germany) GmbH
Mildenau, Germany
Tel: 49-3733-55070

Jacob Holm Management GmbH
Allschwil, Switzerland
Tel: 41-61-485-5300
 
Key Personnel
Poul Mikkelsen, CEO; Peter Stoffel, COO: Michael Steen Lunde, Vice President of business development; Hyo-young Kim, Marketing Director; Jos van Hattum; Bruno Guymard

Plants
Soultz, France; Mildenau, Germany

Processes
Hydroentangling, needlepunch

Brand Names
Norafin, Lidro, Rough n’ Soft, Bi-Activ, Duo-Touch, Duo-Clean, Scrubbi, Duplex, Triplex

Major Markets
Cosmetics/hygiene, household, industrial, medical

Increased product diversification as well as a focus on quality control contributed to a jump in sales last year for Jacob Holm Industries. The company’s nonwovens sales reached $65 million last year, compared to $60 million in 2001. While baby wipes continue to comprise the bulk of Jacob Holm’s business, other segments of the wipes market are considered strong growth areas, and most of its new products target these areas.
 
For one, BiActiv, a wipe comprising a soft side and a rough side, is ideal for cleaning and cosmetic applications, and Rough n’ Soft, a two-layer nonwoven material made entirely from spunlaced substrates, targets household and cosmetic applications. Additionally, Triplex, features a three-layer sandwich construction with a piece of film positioned between two spunlaced layers that can be used in a variety of wipes applications.
 
These diversification efforts are a direct result of maturity in the baby wipes segment. As growth prospects in baby wipes wane, Jacob Holm has been  eager to capitalize on the mass proliferation of wipes into other consumer and industrial areas. Jacob Holm is experiencing 10% growth or better in the household care, cosmetics and institutional and industrial wipes segments, according to Michael Steen Lunde, vice president of business development.
 
One area of interest is raw material development. Rather than focus on new forming methods and embossing patterns, which can confuse consumers who are used to certain substrate types, adding value to fibers, such as antimicrobial benefits, is one way to boost the effectiveness of wipe products.
 
“There is a demand on the nonwovens producer to come up with new things, and to do this we really need to invest in our businesses,” Mr. Lunde remarked. “You used to see different nonwoven substrates, but now you are really seeing the same substrate in a variety of different products. What has changed is the lotion.”
 
While most wipe substrates used in North America and Europe are uniform, Mr. Lunde still sees room for technology in niche areas. He hopes that these new substrates can attract consumers and open up opportunities for wipes. “The challenge is to come up with a specific material to convince customers to incorporate a new substrate into their products,” he said. “This can be difficult because the customer reaps a lot of advantages by using the same material for all of their products including cost, liquidity and fluidity.”
 
The trend toward uniform products has also led to consolidation within customer-supplier relationships in the nonwovens industry. Global companies, keen on offering the same product throughout the world, are achieving this by purchasing their raw materials from fewer companies.
 
“A lot of the bigger consumer product companies are cutting down on the number of suppliers they use,” Mr. Lunde remarked. “Companies that used to rely on 14-15 vendors now use three or four. This has impacted a lot of companies in the way that they cater to these companies. It has really increased dependency—for both the supplier and the customer.”
 
This has also led Jacob Holm to sharpen its focus on quality control. The company has honed its operations to consistently deliver the same product to its customers, a process that has really taken an attitude readjustment, according to Mr. Lunde. “As an industry, we have not explained that small flaws are intrinsic to nonwovens,” he said. “Instead, we have risen to the demand for a uniform product by improving our products.”
 
In addition to three spunlaced lines, two lines in Soultz, France and one line in Mildenau, Germany, Jacob Holm also operates a needlepunch line in its Mildenau, Germany facility. This operation was acquired through Jacob Holm’ purchase of Norafin in 2000 and does not only target the markets that typically use needlepunched nonwovens. In addition, the output is used to reinforce Jacob Holm’s spunlaced materials and further diversify its offerings to the wipes market.
 
Outside of wipes, also on Jacob Holm’s radar screen is the medical market. Penetration into this market has already been achieved to some degree through new product introductions, including Duplex, a spunlaced nonwoven laminated to a polyethylene film that targets protective applications in the medical, hygiene and cosmetic segments.  
 
New products and their entry into new markets are expected to help Jacob Holm continue its pattern of double-digit growth. “We have worked hard to make sure we don’t rely too much on just one thing,” Mr. Lunde concluded. “We know this will pay off.”"
Location: Jyderup, Denmark

Sales: $87 MILLION

Description: Key Personnel
Poul Mikkelsen, CEO; Peter Stoffel, COO: Michael Steen Lunde, vice president of business development; Jos van Hattum, sales director; Bruno Guymard, research and development manager

Plants
Soultz, France; Mildenau, Germany

Processes
Hydroentangling, needlepunch

Brand Names
Norafin, Lidro, Rough n’ Soft, Duplex, Triplex

Major Markets
Cosmetics/hygiene, household, industrial, medical

North American expansion is among the highlights of Jacob Holm’s business this year. The company announced in April that it would  build a spunlace line in the Asheville, NC, in light of increased demand in the U.S. and a promising European business.
 
Executives have said that North Carolina was chosen as a location because of its strong, existing nonwovens infrastructure and good business climate. The operation will be easily accessible to several key marketers of wipes, which will be the line’s key target market, according to the company.
 
Representing a $40 million investment, the new line joins several other projects announced in recent months by other European spunlaced producers looking to grab a share in the burgeoning U.S. wipes market. Jacob Holm’s decision to enter the U.S., however, was not made because some U.S. wipes marketers’ planned conversion from airlaid to spunlaced substrates. In fact, while much of Jacob Holm’s European business centers around personal care and other types of wipes, the North American line is expected to serve industrial markets such as wipes for the food service industry and packaging materials.
 
“We are ready for a competitive market; we never had the illusion that there wouldn’t be huge competition in the U.S.,” said Michael Steen Lunde, group vice president. “There are very few industries that experience a total monopoly so having a line that runs well and produces the right products will be rewarded. People will make it work, make it grow.”
 
Mr. Lunde added that while this new line is based on spunlaced technology, it could produce other types of substrates required by customers  in the future. The U.S. facility will also have after-treatment capabilities.
 
Paramount to building the foundation for this new venture  has been Holm’s U.S. sales director Michael Norboge, who has worked with U.S. clients since 1999. Mr. Norboge will continue in his senior role serving existing and future Jacob Holm clients.
 
Using technology from Fleissner, Jacob Holm, Kuster and A. Celli, the U.S. line will be able to produce at least 15,000 metric tons of material per year. Construction will begin next month, and the line should come onstream in June 2005. The operation will employ 50 hourly and 20 salaried employees.
 
While waiting for the new line to come onstream, Jacob Holm will continue to focus on its existing roll goods business, which currently has facilities in Soultz, France and Mildenau, Germany. While other companies involved in wipes have forward integrated either by acquiring or investing in a converting operation, Jacob Holm is content honing its spunlaced material.
 
“Conducting development work with our branded clients has allowed us to  see  what platforms will shape the future of the nonwovens industry,” Mr. Lunde explained. “One always has to watch out that things will change.”
 A constant stream of investment in research and development, engineering and quality practices has allowed Jacob Holm to be competitive. Its European plants have been able to escape some of the overcapacity issues affecting Europe thanks to long-term contracts with branded manufacturers.
 
These manufacturers are trending away from middle ground quality wipes. Instead, there seems to be demand for standard commodity substrates and specialized value-added products that can fetch a higher price. This has led to two key challenges for Jacob Holm: developing a standard product at a more efficient price and coming up with innovative, value-added properties to add to its spunlaced material.
 
In addition to its three spunlaced lines, Jacob-Holm operates a needlepunch line in Germany, which was purchased as part of its acquisition of Norafin in 2001. While much of this output reinforces its spunlaced business and diversifies its products in the wipes market, it has been making headway in filtration and cosmetic areas. “You really have to challenge yourself to get value in needlepunch because it’s a slow process, it’s expensive and it’s hard to make money off of,” Mr. Lunde said.
Location: Allschwil, Switzerland

Sales: $91 million

Description: Key personnel
Poul Mikkelsen, chairman; Peter Stoffel, CEO; Jack Richardson, COO; Ingo Johannsen, CFO; Michael Norboge, vice president of Personal & Home Care; Claudia De Buman, vice president of Special & Technical Applications

Plants
Asheville, NC, USA; Soultz, France; Mildenau, Germany

Processes
Hydroentangling, needlepunch

Brand names
Lidro, Norafin, Rn’S

Major markets
Wipes, Hygiene, Medical, Filtration, Packaging, Protective apparel and Automotive


Sales of $91 million reflect a slight increase for Jacob Holm Industries, a solution provider serving industries with mainly spunlaced and needlepunched nonwovens to date. This figure is expected to jump significantly in 2005 and 2006 as a large spunlaced line comes onstream in North Carolina, the company’s first U.S. production site.
 
Jacob Holm Industries invested $65 million in this U.S. facility to accomplish two phases of business expansion in the U.S. The facility’s new line, using technology from Fleissner, Jacob Holm, Kuster and A. Celli, will be able to produce at least 15,000 metric tons of material per year and, more importantly, the facility is designed and constructed to accommodate further expansion in the near future. The line will chiefly serve the personal care and household wipes markets but also features enough flexibility to create other substrate types including cotton for various markets.
 
The company made a decision to enter the U.S. last spring after sales there, once representing as much as 20% of its total business, were hit by U.S. currency fluctuations. Last year, U.S. sales accounted for approximately 10% of Jacob Holm sales. Also contributing to this decision was increased demand for spunlaced nonwovens in the U.S. wipes market, which was reportedly led by Procter & Gamble’s conversion from airlaid to spunlace in its U.S. baby wipes business.
 
“The growth in the U.S. has been better than we hoped,” said CEO Peter Stoffel. “Some U.S. companies already have no choice but to buy spunlaced products in Europe or Israel.”
 
Wipes currently represent about 70% of Jacob Holm’s total nonwovens business. This figure was once as high as 80%.  But executives are looking beyond this market for growth and expect it to keep decreasing as a focus on other areas continues.
 
“We are looking to other markets where we can sell more functions and differentiate our products. This is being demanded, to some degree, in wipes, but moreso in areas like filtration and protective apparel.”
 
Here Jacob Holm is working with high performance fibers such as Teflon, Nomex, PVA, meta-aramids and poly-aramids. “If a fiber is cardable, we can use it,” explained Mr. Stoffel. “We are examining this in all aspects of our business but wipes are limited in how much differentiation a customer will pay for.”
 
From a geographical standpoint, much of Jacob Holm’s focus is on maintaining its European business while preparing for its North American expansion.  However, five years ago, the company, which operates facilities in France and Germany, made a commitment to being a global company.  “It was our decision to go to the U.S. first but it’s safe to say we will go to Asia next,” Mr. Stoffel said.
 
Like many of his peers, Mr. Stoffel cited rising raw material prices, and the retail market’s failure to absorb them, as a key challenge facing nonwovens. “It has been hard to pass increases on and the industry isn’t going to develop if we can’t increase our prices. Productivity can only take us so far when it comes to cutting prices.”
 
So far, the result of this problem has been industry consolidation, a trend Mr. Stoffel sees continuing in all tiers of the industry. “The good thing is the market is still growing so it is a good market to be in,” he added.
 
In corporate news, Jacob Holm in 2004 reorganized its organizational structure into global business units, Personal & Home care (PHC), encompassing wipes used domestically, and Special & Technical Applications (STA), containing filtration, protective apparel and other specialty applications. With this reorganization came a move of the company’s corporate headquarters from Jyderup, Denmark to Basel, Switzerland as well as some personnel appointments. Jack Richardson, formerly of Johnson & Johnson, was named chief operating officer; Ingo Johannsen, who formerly worked for Siemens in business development and mergers and acquisitions, joined the company as chief financial officer; Michael Norboge, formerly U.S. sales director was named vice president of Personal & Home Care and Claudia de Buman was named vice president of Special & Technical Applications. Mr. Stoffel said that the global units will give customers a key focal point for dealings around the world.
Location: Aalschwil, Switzerland

Sales: $87 million

Description: Key personnel
Poul Mikkelsen, chairman; Peter Opperman, CEO; Jack Richardson, COO; Ingo Johannsen, CFO; Michael Norboge, vice president of Personal & Home Care; Claudia De Buman, vice president of Special & Technical Applications

Plants
Asheville, NC, USA; Soultz, France; Mildenau, Germany

Processes
Hydroentangling, needlepunch

Brand names
Lidro, Norafin, Rn’S

Major markets
Wipes, Hygiene, Medical, Filtration, Packaging, Protective apparel and Automotive

Continued growth can be expected for the coming years for Jacob Holm Industries. Sales of $87 million were relatively unchanged in 2005 as the company commissioned and started production on its new spunlace line in new facilities in Asheville, NC and looked toward boosting its Special and Technical Applications (STA) unit. However, sales are expected to jump this year as the new North American spunlace line is fully commercial, according to Jacob Holm Group CEO Peter Oppermann.
 
“The line's real potential will be visible during the course of 2006, the qualification process of our non-standard products has just taken more time than expected in 2005; however, the sold-out position was reached at the end of the second quarter. The advantages of a very versatile, yet highly productive line being able to produce two times textile width fabrics (4.6 m line width) supported the business as expected,” Mr. Oppermann explained. Jacob Holm invested more than $50 million in this U.S. facility to accomplish two phases of business expansion in the U.S. The new line can produce 15,000 tons of spunlace material per year and will serve the wipes market, a core segment for Jacob Holm's spunlace business in Europe and North America, as well as a range of technical markets, namely filtration and protective apparel.
 
In fact, Jacob Holm’s focus on these technical areas resulted in the spin off of its technical activities under the name Jacob Holm & Sons STA, into which LD Equity invested. Jacob Holm & Sons STA announced the acquisition of Tytex in July 2006. Jacob Holm & Sons STA will employ 500 and achieve sales of $94 million. Tytex is a producer of knitted technology for global healthcare companies. Among Tytex’s key markets are adult incontinence items, hip protection, nursing mothers, bandages for wound and skin care and orthopedic solutions.
 
“We are not combining the two companies in order to produce the standard tough-action cost synergies. We intend to exploit the fact that the two companies both develop and manufacture advanced textiles based on a high knowledge content and close partnership with customers. Also, both operate in markets driven by innovation. That is why the two companies can learn from each others’ experience and together build a global platform and a broader range of solutions to offer our customers. By combining the two technologies, we will also be able to design entirely new products to spur growth,” said Christian Møller, partner with LD Equity, and Poul Martin Mikkelsen, chairman of the board of Jacob Holm & Sønner A/S in a joint statement.
 
Tytex Group will operate a subsidiary under its own name and with its own brands. Poul Martin Mikkelsen, owner of parent company Jacob Holm & Sønner A/S, will be appointed chairman of the board of directors of Jacob Holm & Sons STA while Christian Møller, Stig Løkke Pedersen, executive vice president of H. Lundbeck A/S, and Martin Mikkelsen, attorney, will also serve on the board.
 
Peter Aggersbjerg, who was the CEO of Tytex from 2001 to April 2006, will become CEO of Jacob Holm & Sons STA. He orchestrated the company’s successful transition from a contract manufacturer to an innovative, market-driven healthcare company. Per Gernow will stay on as CEO of Tytex.
 
Jacob Holm’s activities in the production of nonwovens for applications within personal hygiene, cosmetics and cleaning will continue without change. According to Eveline Geser, marketing director, this business arm has been challenged by pricing concerns and retailer pressures.

However, Jacob Holm has been making strides in developing specialty wipes as well as continuing to improve its productivity. “Supported by one of the most versatile and complete spunlace nonwovens production assets and an in-depth understanding of market requirements Jacob Holm has in close cooperation with its clients developed solutions providing an opportunity to differentiate in a highly competitive market. The utilization of specialty fibers, composite structures as well as customized patterning helped that initiative,” Ms. Geser added.

Location: Allschwil, Switzerland

Sales: $104 million

Description: Key Personnel
Poul Mikkelsen, chairman; Stephen Landon, president and COO; Michael Norboge, vice president sales & business development; Finn Schoning, group controller; Jack Richardson, vice president USA operations; Alain Herberle, France operations; Francois Wurffel, global production

Plants
Asheville, NC; Soultz, France.

Processes
Hydroentangling (including standard & specialty applications)

Brand names
Rn’S, Lidro, TAU

Major Markets
Wipes, hygiene, packaging, automotive, industrial (various)


Jacob Holm’s large scale dry carded spunlace line continues to ramp up in Asheville, NC, allowing the Switzerland-based company to continue its growth pattern with sales climbing from $91 million in 2005 to $104 million in 2006. Jacob Holm’s U.S. line, which was added in 2005, is being called the widest and fastest dry carded spunlace line in the world by executives who report that the line is already oversold. Growth is continuing into 2007, thanks to major new agreements with leading global and U.S. marketers for personal hygiene and disinfectant wipe applications covering 2007 and 2008.
 
“Presently 2007, has seen exceptional growth and demand for spunlace in the U.S.,” said company president Stephen Landon.
 
Additional growth can be attributed to optimization of the company’s two French lines. Volume growth occurred in both existing and new markets.
 
Meanwhile, earnings growth was described as “satisfactory but below budget” with U.S. volumes increasing significantly from start up and European margins under pressure due to excess market capacity. However, significant operational improvements increased both capacity and capabilities in France and fixed costs were reduced, according to Mr. Landon. “These successes helped to partly offset the margin squeeze from unprecedented and ongoing raw material cost rises. These cost increases together with global supply constraints on cellulosic fibers could impact our short-term progress and put marginal product platforms at risk” he said.
 
With three spunlace lines, the bulk of Jacob Holm’s output serves the wipes market, which has shown exceptional strength since early 2007, according to the company. New and interesting wipes applications continue to be introduced in Europe, North America, Asia and the Near East as more established wipes programs are holding or gaining volumes, Mr. Landon said.
 
Also benefiting the spunlace market in general is recent consolidation in both North America and Europe, which Mr. Landon said should provide improved stability in general. “Until recently, there have been a large number of individual spunlace producers especially in Western Europe, all roughly the same size and scale and all seeking sustainable volumes and pricing from a finite marketplace,” he said. “The marketplace will likely see increased emphasis on product and segment development from the lower number of spunlace producers, which will be a good development for all concerned.”
 
In March 2007, Jacob Holm sold off its Norafin / STA unit after establishing it as a separate company in July 2006. The unit was spun off to perform under the Norafin name and will focus on four specialized segments. Jacob Holm, meanwhile, will continue to retain and expand its business development and research resources supported by its operations in the U.S. and Europe. The focus will remain on diversifying its business beyond consumer wipes through new technology and innovation. Among its proven competencies already are layered products, the inclusion of scrims and nettings, heavy and lightweight specialties, thermal and hydroembossing and the ability to produce higher caliber products at low basis weights, according to Mr. Landon.

“The surface has only been scratched on the full range of applications in which spunlace can perform technically and economically and Jacob Holm is working diligently on finding and developing these new applications.”
 Areas being examined by Jacob Holm include commercial construction, disease prevention and specialty packaging and closures, he added.
Location: BASEL, SWITZERLAND

Sales: $160 million

Description: Key Personnel
Poul Mikkelsen, chairman; Stephen Landon, president and COO; Finn Schoning, group controller; Chip Holton, vice president operations USA; Alain Héberlé, plant manager France; Craig DePorter, director of marketing and business development Europe; Francois Wurffel, group production manager; Alexis Porcher, global commercial manager; Jean-François De Gruttola, key account director; Ginny Casstevens, sales director—Americas; Amel Sediri, marketing

Plants
Asheville, NC; Soultz, France.

Processes
Hydroentangling (including standard & specialty applications)

Brand Names
Rn’S, Lidro, TAU

Major Markets
Personal Care, Home Care, Hygiene, Packaging, Special & Technical industrial applications


Sales jumped from $104 million to $160 million at Jacob Holm as the company underwent full qualification and significant scaling up of its newest line, which is located in Asheville, NC. “We have seen strong demand for spunlace nonwovens in both the U.S, and Europe,” said Stephen Landon, president. “We ran 24 hours a day, seven days a week on all our lines to meet strong demand.”
 
By region about $110 million of Jacob Holm’s sales were in Europe while $50 million were in the U.S. The U.S. sales have increased significantly during 2008 to a current level of approximatively $85 million per annum, as the Asheville site continues to increase its production output.
 
For Europe, 2007 was characterized by increased sales of higher value-added products into both existing and new markets as well as record production on existing assets to support the higher sales volume. The U.S. not only saw the full qualification and scale-up of the Asheville line, it also saw a rationalization of products and a new focus on products and markets where the company has a clear competitive advantage—the Asheville line is the widest spunlace line with the highest capacity worldwide and is ideally suited to higher value spunlace products, Mr. Landon explained. “We are further optimizing our product output in the U.S to meet the ever-growing demand,” he continued. “Our current demand exceeds our U.S. capacity with some customers supported from our French plant.”
 
To date, the economic downturn in the U.S. has not impacted business for Jacob Holm there and while pricing pressure does exist on the market, for the most part Jacob Holm’s products mainly fall in the top end/higher value market segments that escape some of these pressures.
 
That said, the U.S. line has performed well ahead of budget on production performance and the company is exploring a number of new product innovation plans for 2009 and beyond. Among these could be a finalized plan for a new line at the Asheville site, which was designed and built for a quick scale up and additional capacity, according to Mr. Landon. Plans for a new line, however, won’t be finalized before the second quarter of next year.
 
In the meantime, Jacob Holm will continue to focus on growth, particularly in markets beyond wipes where its high value spunlaced products can bring real value.
 
“The global spunlace market is growing and becoming far more differentiated, for example cosmetic and personal care applications are showing a lot of innovation and growth but the household market is showing much lower growth and is mainly cost-driven,” Mr. Landon said. “Spunlace remains a premium nonwovens technology with the scope to penetrate new industrial markets outside traditional wipe applications.”
 
In fact, Jacob Holm expects wipes to represent only about 65% of its overall volume by 2010 as other applications such as specialty packaging, hygiene components beyond wipes, construction, automotive and cosmetics emerge as major users of spunlaced nonwovens.
Location: BASEL, SWITZERLAND


Sales: $172 Million


Description: Key Personnel
Poul Mikkelsen, chairman; Finn Schoning, group controller; operations USA; Alain Héberlé, director of marketing and Porcher, global commercial account director; Ginny Casstevens, Sediri, marketing

Plants
Asheville, NC; Soultz, France.

Processes
Hydroentangling (including

Brand Names
Lidro, Rough N Soft, TAU

Major Markets
Personal Care, Home Care, industrial applications

Growth in the wipes market as well as that market’s continued conversion to spunlaced nonwovens has allowed Jacob Holm to continue its pattern of sales growth. The Swiss manufacturer of spunlaced nonwovens reported sales grew 7.5% to $172 million last year after growing from $104 million the year before.

“We see moderate growth in wipes plus significant growth in spunlace applications for wipes in North America, and we are seeing significant growth for the wipes market in general as well as more conversion from airlaid in Eastern Europe,” explained CEO Stephen Landon.

With bragging rights on the world’s largest spunlace line, located in Asheville, NC, Jacob Holm reported that about $78 million of these sales were conducted in the U.S. The company is poised to expand its presence in North America thanks to new contracts in Mexico as well as a deal in the feminine hygiene market in Canada.

About $94 million in sales is done in Europe, where Jacob Holm has a sizeable spunlace business in Soultz, France. This busines is not growing as quickly because the wipes business of Western Europe as its conversion to spunlace is already complete. Instead, Jacob Holm is betting on growth in Eastern Europe where wipes are growing quickly as is spunlaced nonwovens’ penetration into existing wipes markets.
Currently, about 80% of Jacob Holms European sales are related to wipes, a percentage the company is okay with. However, Mr. Landon said he would like to see this part of the business more diversified into more valued added wipe areas, which is the case already in North America where wipes represent 70% of sales.

Jacob Holm’s five-meter-wide U.S. spunlace line, added in 2006, is capable of making nonwovens with a range of raw material and in varying different basis weights, mostly for the premium wipes market. In fact, it is this line’s success in attracting long-term, high volume premium businesses that has contributed to Jacob Holm’s impressive growth during the past two years. “High volumes don’t necessarily mean low technology, but we do want to run our machines for long campaign times. We want a balanced mix of customers and products,” Mr. Landon said.

“The next step in the U.S. will be a second line, to be approved probably later this year or early next year and operational in 2011. We are thinking it will be a complementary line to the first line,” he said. “The emphasis will be on quicker changeovers and shorter run times.”

After that will come a third line—probably five years from now— offering complementary technology to spunlace, Mr. Landon continued adding there are still many segments of the wipes market still open to Jacob Holm. “Household wipes has not even been fully explored by Jacob Holm in the U.S.,” he said.
Location: Basel, Switzerland

Sales: $156 million

Description: Key Personnel
Poul Mikkelsen, chairman; Stephen Landon, president and COO;
Finn Schoning, group controller; Ginny Casstevens, sales director – Americas; Jean Francois De Gruttola, key account director—USA; Richard Knowlson—global product development director; Alexis Porcher—global commercial manager; Chip Holton, vice president—Operations—USA; Gilles Hourlier, vice president—Operations—France

Plants
Asheville, NC and Soultz, France
Processes
Hydroentangling

Brand Names
Lidro, Rough N Soft, TAU

Major Markets
Personal Care, Home Care, Hygiene, Packaging, Specialty & Technical Industrial applications

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

Basel, Switzerland
www.jacob-holm.com
2011 Nonwovens Sales: $192 million

Key Personnel: Poul Mikkelsen, chairman; Stephen Landon, president and COO; Finn Schoning, group controller; Richard Knowlson, global product development director; Alexis Porcher, global commercial manager; Ginny Casstevens, vice president, sales and new business development—Americas; Chip Holton, vice president, Operations—USA; Gilles Hourlier, vice president, Operations—France

Plants: Candler, NC; Soultz, France

Processes: Hydroentangling

Brands: Lidro, Rough N Soft, TAU

Major Markets: Personal care, home care, hygiene, packaging, specialty and technical industrial applications

Sales continued to climb at Jacob Holm Industries in 2011. The Swiss nonwovens producer with manufacturing sites in Candler, NC, and Soultz, France, reported sales increased 16% to $192 million due largely to a changing product mix, favorable exchange rates and raw material pricing.

“Our ability to produce lightweight substrates with high functionality continues to drive our success in the hygiene market specifically within diaper component and feminine hygiene applications,” says Stephen Landon, president and COO. “In addition, our lightweight capabilities have proven successful in the wipes category by allowing our customers to offer premium, lighter weight wipes to the market at a lower cost without compromising quality. These combined successes have allowed us to capitalize on many opportunities within the global market.”

Some other factors influencing success include the ability to offer alternative, more cost-efficient fibers such as regenerated cotton, as well as the ability to supply premium, lighter weight products matching or exceeding product specifications, he adds.

Currently, about 65-70% of Holm’s overall capacity is sold into the global wipes market while the balance is primarily sold into the hygiene market for diaper components and feminine hygiene applications. While efforts to diversify beyond wipes have been strong in recent years, Holm continues to develop new products in its core wipes business. These include 100% synthetic wipes with an apertured or smooth surface for disinfecting applications, a variety of premium lightweight wipes that range from 30-40 gsm using specialty fibers and a new range of 100% cellulosic/sustainable products.  

This has helped Holm in wipes, which Landon still describes as a global growth market, albeit one with very pressurized margins, particularly in developed markets. “Converters are constantly looking for cost savings and this provides a need for constant product reinvention,” he explains. “The market also seems to have segmented into specific tiers of premium and low cost wipes with innovation and differentiation being valued in the premium tier.”

Meanwhile, Holm has expanded its processing capabilities beyond lightweight hygiene applications to deliver mid- to heavyweight products for industrial applications like automotives, apparel and furniture, areas that have traditionally used needlepunch fabrics. In the lightweight hygiene category, Holm continues to push the lowest basis weight limits that spunlace can supply, now targeting 20 gsm and lower, in order to compete with alternate nonwoven technologies while providing spunlace performance.

Efforts like these have helped Holm continue to grow during the past several years without adding new capacity. The company’s most recent investment, a large line in North Carolina, was added in 2006, and has been running at sold-out status for several years, but to date the company has announced no final plans for a second line at the site.

According to Landon, in 2011, the company reviewed a few specific acquisition opportunities, which did not close. Instead, the key for Jacob Holm has been, and will remain, maintaining a benchmark capability in target market segments of premium wipes and hygiene. “Specifically, this has involved upgrading existing lines to process many alternate fibers and lightweight spunlace for hygiene plus the reduction of waste and energy consumption,” he adds.

This strategy also encompasses Europe, where a focus has been on both innovation and operational efficiency. “In an overcapacity marketplace, it has been critical to differentiate and at the same time we have invested to ensure our lines remain competitive with the very latest technology,” Landon adds.

While Jacob Holm provides a breakdown of sales from its manufacturing bases—the U.S. accounts for $91 million while Europe $101 million—it will not provide information on its global scope. However, the company says it has seen promise in Latin America as well as in certain Southeast Asian markets.

Meanwhile, the company has restructured its North American sales team to focus and grow its presence in both North and South America as it supports the rollout of next generation premium wipe products. Additionally, the company has increased its North American sales team to focus on new market opportunities for industrial applications where it sees its ability to process 100% synthetic fiber products at high efficiencies as a strength. 

“Jacob Holm continues to invest heavily in product development activities and to differentiate itself it in its core wipes business, its growing hygiene segment, as well as supporting new industrial opportunities,” Landon continues. “Additional resources were added to the product development group in both North America and Europe and higher levels of machine trial times were made available.” 
Basel, Switzerland
www.jacob-holm.com
2012 Nonwovens Sales: $171 million
 
Key Personnel: Poul Mikkelsen, chairman; Stephen Landon, president and COO; Finn Schoning, group controller; Alexis Porcher, global commercial manager; Richard Knowlson, vice president product development; Ginny Casstevens, vice president, sales and new business development, Americas; Jeff Sellers, vice president, operations and procurement, USA
 
Plants: Asheville, NC, U.S., and Soultz, France
 
Processes: Hydroentangling/Spunlace
 
Brands: Lidro, Rough N Soft, TAU
 
Major Markets: Personal care, home care, hygiene, medical, packaging, specialty and technical industrial applications
 
Sales decreased at Jacob Holm Industries in 2012. The reduction reflects lower raw material costs, changes in product mix and varying exchange rates, according to president and COO, Steve Landon.
 
“Margins in key segments were broadly in line with the prior year and lines remained full in 2012, operating on a 24/7 basis throughout the full year,” he says.
 
Currently about 60-65% of Jacob Holm’s overall capacity is sold into the global wipes market while the balance is primarily sold into the hygiene market for diaper components and feminine hygiene applications. While efforts to diversify beyond wipes have been strong in recent years, Holm continues to develop new products in its core wipes business. These include 100% synthetic wipes with an aperture or smooth surface for disinfecting applications, a variety of premium lightweight wipes that range from 30-40 gsm using specialty fibers and a new range of 100% cellulosic/sustainable products.
 
Variety in raw materials has helped Jacob Holm in the global wipes market, which is still a growth market, albeit one with very pressurized margins, particularly in developed markets. Here, Jacob Holm’s efforts have been recognized by wipes converter Rockline Industries, who honored the spunlace maker with its Supplier Innovation Award in 2011 and again in 2012.
 
While wipes undoubtedly remain a priority, Jacob Holm has expanded its processing capabilities beyond lightweight hygiene applications to develop mid- to heavyweight fabrics for industrial applications such as automotives, apparel and furniture, areas that have traditionally used needlepunch fabrics. In the lightweight hygiene category, Jacob Holm continues to push the lowest basis weight limits that spunlace can supply, continuing to target 20 gsm and lower, in order to compete with alternate nonwovens technologies while providing the same performance as heavier spunlace nonwovens.
 
Efforts like these have helped Jacob Holm continue to grow during the past several years without adding new capacity, Landon says. The company’s most recent investment, a large line in North Carolina was added in 2006 and has been running at sold-out status for several years but to date the company has announced no final plans for a second line at the site.
Basel, Switzerland
www.jacob-holm.com
2013 Nonwovens Sales: $171 million  

Key Personnel
Poul Mikkelsen, chairman; Martin Mikkelsen, CEO; Stephen Landon, president and COO; Finn Schoning, group controller; Alexis Porcher, global commercial manager; Richard Knowlson, vice president product development; Ginny Casstevens, vice president, sales and new business development, Americas; Jeff Sellers, vice president, operations and procurement, USA  

Plants
Asheville, NC, U.S.; Soultz, France; Old Hickory, TN, U.S.; Asturias, Spain

Processes
Hydroentangling/spunlace  

Brands
Lidro, Rough N Soft, TAU  

Major Markets
Personal care, home care, hygiene, medical, packaging, specialty and technical industrial applications  

The big news at Jacob Holm this year is the acquisition of the Sontara business from DuPont Protection Technologies, a deal that was announced in June and is expected to close during the third quarter. The integration of Sontara into Jacob Holm’s existing business not only increases the company’s spunlace output, but it also expands its manufacturing footprint with operations in Old Hickory, TN and Asturias, Spain.

“The combination of Jacob Holm and Sontara complements two strong players and creates a new industry innovation leader for spunlaced nonwoven fabrics. The broader range of technology know-how results in higher innovation capabilities in product development and offers promising business opportunities to the benefit of our customers and our employees. We very much look forward to working with our new colleagues and partners who will undoubtedly contribute to the successful development of our group,” says Martin Mikkelsen, CEO of the Jacob Holm Group.

DuPont developed Sontara more than 40 years ago and has marketed it in a range of medical and wipes businesses. According to DuPont’s annual report, sales last year were about $190 million or 5% of DuPont Protection Technologies’ sales in 2013.

Paul Marold, a former Ahlstrom executive, will serve as COO of the Sontara business once the sale closes.

Turning to Jacob Holm’s existing business, the company is underway with a large expansion at its Candler, NC site, which already houses one large spunlace line. The total investment for this new line will likely exceed $60 million by the time it is complete sometime in early 2015.

The site’s first line, which was added in 2006, has been operating at a sold-out status for several years and the company has relied on streamlining efficiencies as well as new product development to increase capacity and sales at the site.

For example, in the lightweight hygiene category, Jacob Holm has pushed the lowest basis weight limits that spunlace can supply. Such new development initiatives, including alternate specialty fiber processing, has allowed Jacob Holm to grow and develop without adding new assets, while targeting new market segments.

While it has diversified outside of wipes to some extent, still the majority of its overall capacity is sold into the premium wipes market while the balance is primarily sold into the hygiene market for diaper components and feminine hygiene applications. While efforts to diversify beyond wipes have been strong in recent years, Holm continues to develop new products in its core wipes business. These include 100% synthetic wipes with an aperture or smooth surface for disinfecting applications, a variety of premium lightweight wipes that range from 30-40 gsm using specialty fibers and a new range of 100% cellulosic/sustainable products.  

Variety in raw materials has helped Jacob Holm in the global wipes market, which is still a growth market, albeit one with very pressurized margins, particularly in developed markets.

While premium and next generation wipes undoubtedly remain a priority, Jacob Holm has also expanded its other processing capabilities beyond lightweight hygiene applications, developing mid- to heavyweight specialty fabrics for industrial applications.
Jacob Holm Industries
Basel, Switzerland
www.jacob-holm.com
2014 Nonwovens Sales: $400 million

Key Personnel

Poul Mikkelsen, chairman; Martin Mikkelsen, CEO; Finn Schoning, group vice president, Finance; Andy Uhl, COO Jacob Holm, Paul Marold, COO, Sontara

Plants
Asheville, NC; Soultz, France; Old Hickory, TN; Asturias, Spain

Processes
Sontara, Hydroentanglement/spunlace, composites

Brands
Sontara Softesse, JetSpun, Softlite, SoftFlush, a.o.

Major markets
Personal care, home care, hygiene, medical, specialty, technical, industrial

With a big, new U.S. line coming onstream and an acquisition in the spunlace market, Jacob Holm is one nonwovens producer poised for significant growth in the future. In 2014, the company’s pro forma full year sales, including the Sontara business, which was acquired from DuPont, early in the year, were reported at $400 million.

With a significant portion of its pre-Sontara capacity targeting the global wipes market, Jacob Holm has recently introduced new technology targeting the flushable wipes market, which is a new category for the company. According to CEO Martin Mikkelsen this technology, being marketed under the SoftFlush brand name, was six years in the making. In fact, several years into development, the company realized a completely new asset base would be needed to best serve this market, and the company committed to adding a second proprietary technology line at its North Carolina site.

“We had to completely rethink our technology approach after working on this application for a couple of years,” he says.
However, these efforts were well worth it. Softflush exhibits higher wet strength and faster dispersibility than other commercially available offerings and is finding strong acceptance in the moist toilet tissue, personal care, adult incontinence, medical and bathroom cleaning wipes markets.

“Better dispersibility with a softer feel is where we feel our proprietary technology has significant advantages versus existing substrates to meet dispersibility guidelines in consumer testing,” Mikkelsen says. “In the tests conducted, it exceeds the current standards.”
With custom-designed fiber blends from sustainable natural resources, SoftFlush is also biodegradable.
Mikkelsen says that the material has the potential to displace a portion of the large volume toilet tissue paper market, providing consumers with the opportunity to trade up for a certain performance attribute.
“Most of our customers have a presence in wipes and they are looking to grow in dispersible tissue,” he says. “They are looking for suppliers who can help them differentiate their offering to the premium segments.”
Representing a $60 million-plus investment, the line that makes SoftFlush came onstream in spring 2015, nine years after the first line began operation at the site, and features technology that is proprietary to Jacob Holm.
Meanwhile, Jacob Holm’s existing asset base continues to focus largely on the wipes market and it has benefitted from efforts to focus on lighter weights and alternative raw materials. While Holm continues to successfully diversify outside of the wipes market, it is wipes that is the company’s main business.
 “Our existing asset base speaks well to wipes applications. We remain committed to wipes but we are selective in which specific categories we participate in,” Mikkelsen says.
Beyond wipes, Jacob Holm’s development team has developed certain products that add value in a number of applications like a lightweight range for hygiene applications.
“As these markets grow and change, we are committed to grow and change with them,” Mikkelsen says. “One of these areas is our lightweight range within hygiene. It has seen growth for us, but the product has also evolved to be very different than it was in the beginning.”
The acquisition of Sontara from DuPont, which was complete in third quarter 2014, provided Jacob Holm not only with access to new markets like medical and critical performance wipes, but also with new manufacturing assets in Old Hickory, TN and  Asturias, Spain. Its sales prior to the acquisition were about $190 million or 5% of DuPont Protection Technologies’ sales.
Mikkelsen says that the Sontara business is now benefiting from a new product development team put in place by Paul Marold, a former Ahlstrom executive, who now serves as COO for the Sontara Business Unit.  This business operates independently from Jacob Holm but there are certain synergies that exist between the two businesses.
“Sontara has a significant legacy presence in medical applications and we are looking to refresh this with a next generation offering,” Mikkelsen says. “Selected areas of this market benefit significantly from our combined product offering and we remain committed to grow our presence.”
The strong, science-based development work conducted by DuPont has earned Sontara a spot in a number of regulated industries like aerospace and automotive painting and provides Jacob Holm access to significant new markets.
“With Jacob Holm’s existing technology platform, our new Softflush product and the Sontara capabilities, our customers have the unique benefit of working with the only company spanning the full breadth of web forming technologies with a common denominator in hydroentanglement.”
Basel, Switzerland
www.jacob-holm.com
2015 Nonwovens Sales: $350 million


Key Personnel
Poul Mikkelsen, chairman; Martin Mikkelsen, CEO; Finn Schoning, group vice president, Finance; Andy Uhl, COO Jacob Holm, Roberto Boggio, COO, Sontara

Plants
Asheville, NC; Soultz, France; Old Hickory, TN; Asturias, Spain

Processes
Sontara, Hydroentanglement/spunlace, composites

Brands
Sontara, Softesse, JetSpun, Softlite, SoftFlush, a.o.

Major markets
Personal care, home care, hygiene, medical, specialty, technical, industrial


With its new U.S. investment complete, Jacob Holm Industries is continuing to pursue its global growth strategy within all of its five main segments—hygiene, beauty, healthcare, consumer and industrial. In 2015, sales continued to increase, reaching $350 million on the heels of two major investment initiatives—the acquisition of the Sontara technology assets from DuPont and the completion of its latest U.S. production line in the second quarter of 2015.

“Our global strategy targets five core segments,” says CEO Martin Mikkelsen. “Within these we’re pleased to note growth in all of our geographical markets—the Asia-Pacific, North America, South America and Europe.”

Within North America, Jacob Holm is particularly focused on the flushable wipes market. Its latest investment, a $65 million line, features proprietary technology that has resulted in the launch of Softflush, a unique nonwoven substrate combining the highest wet strength with the fastest dispersibility commercially available. This product is quickly finding acceptance in moist toilet tissue, personal care, adult incontinence, medical and bathroom cleaning wipes markets. In addition to the dispersibility benefit, the product offers a softer feel as recognized by consumers.

Beyond flushable wipes, Jacob Holm is also developing products from the new line for certain healthcare applications and industrial wipes. Mikkelsen says new product introductions targeting industrial wipes have already been launched in 2016.

“Progress on diversifying the offering from our proprietary technology line has opened up spaces for innovation beyond flushable wipes but they still remain the main category and focus of development,” he adds. “Overall, we aim at proposing a more comprehensive offering to our main customers. We can deliver for example the widest technological portfolio to our customers using many types of fiber blends and technical product properties to tailor the product and exceed the end-user’s expectations. We can deliver anything from reinforced pulp-based wipes in the industrial category to ultrasoft flushable wet wipes.”

In fact, diversification within the wipes market is a major focus for Jacob Holm whose markets range from beauty to healthcare to industrial. “When we talk about wipes today, it is a much broader category than it was traditionally,” Mikkelsen says. “We are heavily invested in the wipes category. Our lines and our assets speak well to the needs of the wipes market and we remain committed to bringing more innovation and benefits to our wipes customers.”

Jacob Holm’s second U.S. line came onstream in spring 2015, nine years after its first line began operation. Several years in development, the new line features unique patented technology. Meanwhile, Jacob Holm’s existing asset base has benefited from developments on lighter weights and alternative raw materials.

“We are known for high quality product offerings across all of our segments and all of our regions,” he says. “And for that type of products there is always growth available.”
Currently, Jacob Holm has facilities only in North America and Europe, but that won’t stop growth in other geographies such as Asia.”

The high quality product offering was enhanced through the acquisition of the Sontara technology assets from DuPont in late 2014. In addition to expanding the company’s manufacturing footprint with sites in Tennessee and Spain, the Sontara acquisition provided Jacob Holm with access to key markets and customers in areas of specialty industrial wipes, medical apparel and beauty care. It added about $190 million to overall sales.

“Sontara has a product range that fits well into most of our five core segments and expands our global footprint. It has also given us great dedicated sales representatives in new regions, enabling unparalleled level of local service to our global accounts.”

So while Jacob Holm only has manufacturing sites in the U.S. and Europe, it is able to easily service customers well beyond them into other new regions. That’s not to say that investment in new places is off the table.

“We are looking actively at our next growth project,” Mikkelsen says. “Its too early to say where it will be. We always analyze first our customer’s needs and technology trends. We listen to our customers and the market and then invest with something new, something innovative addressing trends that are emerging. This is what we have done with every single line we have started up, and this is what we are looking to achieve with our next growth initiative as well. Our continued growth is testament to the success of this model.”
Basel, Switzerland
www.jacob-holm.com
2016 Nonwovens Sales: $350 million


Key Personnel
Poul Mikkelsen, chairman; Martin Mikkelsen, CEO; Finn Schoning, group vice president, Finance; Andy Uhl, COO Jacob Holm, Paul Marold, COO, Sontara

Plants
Asheville, NC; Soultz, France; Old Hickory, TN; Asturias, Spain

Processes
Sontara, hydroentanglement/spunlace, composites

Brands
Sontara Softesse, JetSpun, Softlite, SoftFlush, a.o.

Major markets
Personal care, home care, hygiene, medical, specialty, technical, industrial

After spending the last few years in expansion mode—adding a large, new line in Candler, NC, and acquiring the Sontara business from DuPont—Jacob Holm is now focusing on unifying its businesses, developing a single presence and communication message to its customers. Central to this strategy is a new tagline, “Magic Meets Fabric,” which replaces “Art of Nonwovens,” and represents the essence and soul of  what the company is about, according to CEO Martin Mikkelsen. “There is something mystical about Jacob Holm and we wanted to try to synthesize this,” he adds. “We have some really strong brands and we will continue to invest in them.”

One area where this investment continues to pay off is in the flushable wipes segment, where the company’s new U.S. line continues to reach new frontiers, allowing Jacob Holm to launch SoftFlush Fast, which is creating a new standard in flushability with products that break up like toilet paper but are strong like consumer wipes.

While flushability is considered a strong growth area for Jacob Holm, the company has a major presence in most wipes categories across the consumer and industrial markets, particularly in critical applications where the value or performance of the product exceeds price considerations.

In 2016, Jacob Holm expanded its key market segments from five to six with the addition of High Performance, which included durable or technical applications for its spunlace materials. Holm’s existing market areas include consumer, wipes, beauty, critical cleaning, healthcare and hygiene.

While the addition of a new segment shows how Jacob Holm is looking to new markets like automotives, filtration and construction for its spunlace output, wipes continues to be its most important market, representing about 80% of sales.

“We have no intention to give up our position in wipes,” Mikkelsen explains. “In fact, we will continue to maintain it with continuous innovation.”

Baby wipes continues to represent the largest market with the largest base, and it is also growing the most quickly. However, beauty care, where Holm offers a complete range of facial wipes, body care products and masks—is growing in importance.

With manufacturing facilities in France, Germany, Spain and Tennessee, as well as the North Carolina site, Jacob Holm is well positioned to serve markets globally and high growth geographies and emerging markets are high on the company’s radar, even as new spunlace capacity comes onstream around the globe.

“The addition of spunlace capacity around the globe is a testament of the superiority that spunlace offers in terms of its ability to combine fiber blends, gsm’s, finishes and more while still being able to compete with other technologies when it comes to price,” Mikkelsen says, adding that there are some new-to-the-world innovation areas where spunlace has never been used on the horizon.
“Both the team and the company is ready for the next growth stage,” he adds. “We are ready to explore our options and see what is a good fit,” he says.

Whether this growth comes through acquisition or capital investment remains to be seen. “There is a time and place for both investment and acquisition when it comes to global expansion, “ Mikkelsen says. “The opportunity to disrupt markets with new technologies are typically best achieved with organic growth; however, geographical segment expansion is where we see the best opportunities. A combination of these two is usually the best way.”

As it moves forward, Jacob Holm will continue to move in the same prudent manner it did when investing in North America and developing new technologies, making sure its decisions are the right ones for the both the company and the market it serves.

“It took a long time to get to the Softflush technology but I think the consumer will agree that it was worth the wait,” Mikkelsen says.
Basel, Switzerland
www.jacob-holm.com
2017 Nonwovens Sales: $340 million


Key Personnel
Martin Mikkelsen, CEO; Finn Schoning, group vice president, Finance; Roberto Boggio, COO; Christel Dendas, CCO

Plants
Asheville, NC; Soultz, France; Old Hickory, TN; Asturias, Spain

Processes
Sontara, Spunlace


Jacob Holm continues to reap the benefits of the past few years of investments, which include the completion of a large-scale production line in Candler, NC, the acquisition of the Sontara assets from DuPont and the subsequent multi-million dollar investment programs on all production sites. These investments have helped expand Jacob Holm’s range in markets both within and beyond wipes.

“Sontara offers an unparalleled breadth of technology and also allowed us to establish a presence on the ground in Asia with a local network in sales, technology and distribution support,” says CEO Martin Mikkelsen.

The acquisition of Sontara seems to have fortified the Jacob Holm spirit of innovation. In 2018, Jacob Holm commercialized several new product platforms. This growth shows no sign of stopping in 2019 the company’s product development team  has developed an interesting and diverse pipeline of products expected to launch next year in markets such as automotive, advanced skin care and high performance materials, according to the company.

Jacob Holm’s emphasis on innovation and continuous improvement has earned it the reputation for having a young, entrepreneurial spirit. This makes the company very attractive to talented industry partners, both as customers and employees. In the last four years, the number of Jacob Holm employees has increased nearly 450%.

In addition to giving Jacob Holm access to new technology, the acquisition of Sontara provided the company with manufacturing assets in Old Hickory, TN, and Asturias, Spain. In January, Jacob Holm announced it had invested more than €2 million in its Asturias, Spain, production facility. This new technology has expanded the number of products made at the site, allowing Jacob Holm to pursue increasingly broad technological growth by providing advanced capabilities to tailor the performance of its products with more accuracy within a broader potential specification set. The advancement provides customers with access to a significantly expanded range of customization options and new fabric properties for performance critical applications, Mikkelsen says.

The Sontara business significantly broadened Jacob Holm’s market presence, providing it with new segments in critical cleaning and other high performance wipes applications. It also served to increase the Jacob Holm presence in existing markets, like advanced skin care. Through partnerships with leading brand houses, Jacob Holm’s presence in the advanced skin care market continues to grow in Asia and beyond.

Meanwhile, in North Carolina, Jacob Holm’s new line in Candler, NC, is based on proprietary technology that allows the company to broaden its product range into new categories. One of these areas is dispersible wipes, where Jacob Holm is setting new benchmarks for dispersibility and softness, as evidenced by a marked consumer preference.

“We are happy with our North Carolina investment. It pushes the boundaries of what is possible and we are pleased with the opportunities it gives for differentiation as well as execution beyond the limits of the GD4 (flushability standards) with dispersibility,” Mikkelsen says. “We take wastewater issues very seriously when it comes to dispersibility. We aim to go above and beyond any industry standards.”

Based on one-of-a-kind technology, Jacob Holm’s dispersible products have done well with customers. “It’s very different from competing products so retailers and converters can differentiate. There is softer hand feel and very nice lotion stability in the packaging. Our innovation team continues to upgrade the offering of products, and we are excited to launch new and improved grades in the coming period. We continue to be impressed with the capabilities of our technology, and we have not even seen the best of it yet.”

While wipes continue to be an important market for Jacob Holm, the company continues to work diligently to expand its market position outside of wipes in healthcare and hygiene as well as in durable and technical applications including automotive, filtration and construction. As it pursues these markets, Jacob Holm has no intention to lessen its focus on wipes.

“The wipes market has good underlying fundamental growth prospects driven by strong macro trends,” Mikkelsen says. “We see a lot of specialization in a lot of premium products. Baby care is an excellent fit for our asset configurations and continues to be an important component of our growth. We continue to invest in process optimization to remain strong in the premium side of this business.”

Looking forward, the company will continue to focus on sustainability. While in part a response to growing global concerns and regulations, it is also a trend inherent in the company’s ethos. As a company founded in Northern Europe, respect for and protection of its natural surroundings has always been a part of Jacob Holm. Combined with the pioneering spirit that keeps Jacob Holm continuously learning and adapting to the needs of the marketplace, Jacob Holm will continue to add value to its partnerships, where Magic Meets Fabric.
Basel, Switzerland
www.jacob-holm.com
2018 Nonwovens Sales: $360 million


Key Personnel
Martin Mikkelsen, CEO; Finn Schoning, group vice president, Finance; Roberto Boggio, COO; Christel Dendas, CCO

Plants
Asheville, NC; Soultz, France; Old Hickory, TN; Asturias, Spain

Processes
Sontara, Spunlace


Jacob Holm celebrates its 225th year in business this year with continued sales growth after five years of significant investments in a proprietary production line for dispersible wipes in the U.S., the acquisition of the Sontara business from DuPont and added production capabilities in Spain. These investments continue to help Jacob Holm expand its position both within the wipes market and beyond. Jacob Holm has now set its focus on addressing new markets where performance is critical and where they can offer additional value.

“With 225 years of legacy, we aim to foster a youthful and daring spirit to continue innovating and leading the way in spunlace technology,” says CEO Martin Mikkelsen. “We renew our commitment this year to our growth partners, with increased focus on creating solutions tailored to their needs, and to our world as we explore new ways to sustain our business and our planet.”

With facilities in the U.S., France and Spain, Jacob Holm boasts one of the largest breadths of proprietary technology in nonwovens manufacturing. This allows them to provide solutions for a wide variety of applications and end markets. For example, their unique, patented dispersible wipes products exceed dispersibility regulations while out-performing alternative fabrics in wet and dry strength and softness. These products are 100% biodegradable and are produced to meet the changing demands of end consumers and exceed INDA/EDANA industry standards. Jacob Holm also offers customized embossing patterns to further meet customers’ needs. These advancements have largely been possible thanks to the company’s second North Carolina line, which uses one-of-a-kind proprietary technology. The line, added in 2015, has broadened the product range into several new categories by testing the limits of what is possible with nonwovens.

Jacob Holm has leveraged existing Sontara technology by growing their global market reach. The proprietary Sontara production method creates a fabric that is ultra-pure, binder free chemicals and adhesives, with superior dimensional stability and exceptional absorption.

Jacob Holm discovered that these properties made Sontara substrates a natural fit for the beauty care market, where it has continued to optimize the fabric for high-demand features, such as wet transparency and colored substrates. Increased demand for these products has led Jacob Holm to establish a Korean sales office.

After working closely with DuPont to produce Kevlar and Nomex fabrics for over 30 years, Jacob Holm officially launched its own aramids business in 2018. This business has allowed the company to expand into a range of high performance segments that are tailor-made for niche and industrial applications. Proprietary Sontara  technology ensures that all products are soft, drapeable, binder and resin free and offer excellent dimensional stability. Sontara Aramids are used for fabric liners or apparel interfacings for Turnout Gear, fire blocking materials, protection of batteries, transformers or high speed equipment, high temperature filtration and more.

Meanwhile, in hygiene, Jacob Holm has developed a presence across various categories, where they are the market leader in producing lightweight fabrics. Their focus is now on developing sustainable hygiene components without compromising on performance. The incorporation of spunlace materials into items like baby diapers and fem hy items has allowed manufacturers to create more sustainable products, a key demand of end users across age demographics.
Basel, Switzerland
www.jacob-holm.com
2019 Nonwovens Sales: $360 million


Key Personnel
Martin Mikkelsen, CEO; Finn Schoning, group vice president, Finance; Roberto Boggio, COO; Christel Dendas, CCO

Plants
Asheville, NC; Soultz, France; Old Hickory, TN; Asturias, Spain

Processes
Sontara, Spunlace

The latest news from Jacob Holm is the start of an ambitious, global expansion plan that will add 500 million square meters of new capacity to its global output. The program, which has been dubbed “Project Boost,” was approved by the Board of Directors in May 2020 and is expected to be complete by the second quarter of 2022.

“We had some expansion already in the budget for 2020 that we had not yet announced and then we decided to expand the scope significantly,” says CEO Martin Mikkelsen. “Once we had refined the scope and rolled out the numbers it accumulated to that large figure of 500 million square meters, which we felt was well-matched to the increasing market demand for spunlace fabrics.”

The investment program is significant in scope, affecting all production lines at the company’s four global nonwoven production sites. The investment is expected to lead to the creation of at least 57 new full-time positions across the group’s global manufacturing footprint while adding significantly to the size and scope of its output.

“Project Boost is our response to the needs of our partners across the globe for increasing capacity, providing more sustainable substrate choices and continuing to uphold our position as an innovation leader in nonwovens,” says Mikkelsen.

True to Jacob Holm’s commitment to sustainability, the investment will allow the lines to increase their usage of renewable raw materials. Additionally, the upgraded production methodology will reduce waste and improve production efficiency and ultimately lower the carbon footprint of the entire Jacob Holm and Sontara product portfolios.

According to Mikkelsen, Jacob Holm’s sustainability strategy is built from the understanding that true sustainability in nonwovens requires a team approach up and down stream, extending even to consumer education. While Jacob Holm is proud of their ability to run natural and plant-based fibers, there is also an awareness that certain applications will always require the performance that is currently only offered by synthetic materials. “There is a notion that you cannot exit plastics completely but you absolutely can have a more conscientious approach, which is why we are working on greater transparency through sustainability projects like our Jacob Holm eCO2-quation app.”

The decision to significantly expand the company’s global capacity was made as Jacob Holm was in the midst of an aggressive response to the Coronavirus pandemic. In May, the company announced that its efforts to produce much-needed personal protective equipment including face masks and isolations gowns was contributing to a 65% increase in Sontara production. Among these efforts was a partnership with the global sports performance brand Under Armour.

“We very quickly scaled up on production capacity and also fast tracked some debottlenecking projects and other investments we had in the pipeline because we could see our customers were going to need more support from us,” Mikkelsen says.

Jacob Holm also ramped up the certification process, such as EN13795 in Europe, as new regulations surfaced, an effort only possible because of Sontara’s more than 40 years of experience in the medical market.

“The demand remains pretty solid, and we are further increasing capacity to meet it. We also qualified our plant in Asturias, which had not been a major medical producer previously but we were able to utilize our technical expertise from other sites to fast track that process so now we have solid medical grade capabilities in both Europe and North America.”

“This situation is unprecedented,” says CEO Martin Mikkelsen. “However, for Jacob Holm as a company, the only way forward is to lean in to what we know and use the full force of our experience to help contain the spread of Covid-19 and make a positive impact on the well-being of our communities.”

Concurrently, Sontara has increased PPE production partnerships across the U.S. and Europe and has donated the equivalent material of well over a million masks through Spain and France. In addition, they have made donations of disinfectant wipes and meals to emergency personnel within the local communities of their production sites.

Looking back to 2019, Mikkelsen describes it as a basically flat year from a revenue perspective compared to 2018. However, highlights of the year included the company’s reorganization into three business units that roll up into two business areas – Sontara and Jacob Holm. The Sontara area includes the Sontara Professional and Health & Skin Care groups while the Jacob Holm umbrella includes Personal Care in the hygiene and consumer wipes segments.
Basel, Switzerland
www.jacob-holm.com
2020 Nonwovens Sales: $400 million


Key Personnel
Martin Mikkelsen, CEO; Roberto Boggio, COO Sontara; Suman Raha, COO JHI; Raymund Scheffrahn, CFO; Santosh Chavan, CVP PD; Carmelo Carrubba, CVP Strategy/Sustainability; Harvey Shelton, CVP Manufacturing Transformation

Plants
Asheville, NC; Soultz, France; Old Hickory, TN; Asturias, Spain

Processes
Sontara, Spunlace

In July 2021, Jacob Holm & Sons AG entered into a definitive agreement to be sold to Glatfelter Corporation, a leading producer of airlaid and wetlaid nonwovens, for approximately $308 million including the extinguishment of debt. The deal, which is subject to post-closing adjustments, includes the company’s four manufacturing sites and six sales offices located in the Americas, Europe and Asia.

“We are excited about the prospects and possibilities this combination presents for the company and look forward to taking the next step of this new journey,” says Martin Mikkelsen, CEO. “We are pleased to have identified a home for the business with shared values, the proven capability to grow businesses and a clear view to supporting the next growth phase prepared by the Jacob Holm management team.”

Looking back to 2020, sales at Jacob Holm reached $400 million, a year that was defined by global increases in demand due to Covid and increased focus on decontamination and need for localized supply.

As it prepares for its sale, Jacob Holm continues its global expansion plan, which was announced last year in response to this surge in demand. The program, which has been dubbed “Project Boost,” was approved by the board of directors in May 2020 and is expected to be complete by the second half of this year, adding about 500 million square meters to Jacob Holm’s global capacity, impacting all of its global manufacturing sites and adding nearly 60 new full-time positions.

“We are halfway through this investment project,” says Mikkelsen. “We have already seen some good results and validation for upcoming investments.”

In addition to adding to Jacob Holm’s global capacity, the program will allow the company to increase its usage of renewable raw materials. The upgraded production methodology will reduce waste and improve production efficiency and ultimately lower the carbon footprint of the Jacob Holm and Sontara product portfolios.

“We have really doubled down on our sustainability efforts in 2020 and 2021,” Mikkelsen says. “I see it as our obligation to provide sustainable products with improved performance while remaining competitive.”

As part of the Jacob Holm commitment to sustainability, Jacob Holm delivered its inaugural sustainability report in Q1 detailing progress made related to environmental and social governance. Jacob Holm is also proud to report its superior rating by Sustainalytics and its membership as a participant of the UN Global Compact.

On the product side, in April, Jacob Holm added Sontara EC Green to its Sontara Professional portfolio. Sontara EC Green is a unique, new high performance 100% cellulosic substrate product, made from proprietary Sontara technology.

This ultra-pure production process creates a 100% bio-based product without any binders, chemical additives or adhesives. Sontara EC Green is patent-protected and produced from renewable sources, making it an excellent alternative to non-biodegradable substrates. Food contact safe, these wipes come in a convenient dispenser box with sealed packs to prevent contamination. With this product, you can have the critical cleaning power you need while being environmentally responsible.

Along with new sustainable packaging made from recycled materials and a new folded wipes format, Jacob Holm is adding this sustainable option to its Sontara EC product range. This new addition is one more step forward into Jacob Holm’s commitment to sustainability and continuous innovation.

In June, Jacob Holm announced that its SoftFlush products passed the latest International Water Services Flushability Group (IWSFG) specifications. These specifications were created by the IWSFG with public input to reduce problems to homes, wastewater treatment facilities, utility workers and our environment caused by indiscriminately flushing consumer products.

According to IWSFG, “Products that meet the IWSFG flushability specifications are unlikely to cause harm to wastewater conveyance systems or treatment plants.” The IWSFG publicly available specification (PAS) documents were first published in 2018, with updates made in November 2020.

“We are very proud of what we achieved in dispersibility with fully sustainable materials, even though the bar was already set high.” Mikkelsen says.

SoftFlush is also proven to be compliant with the UK Fine to Flush standard and significantly exceeds the requirements of the fourth edition of the Guidelines for Assessing the Flushability of Disposable Nonwoven Products (GD4) set forth by INDA Association of the Nonwovens Fabric Industry.

Looking ahead, Mikkelsen says he believes in the long-term strength of the global wipes market. “The underlying fundamentals of the wipes market are healthy. After a period of extraordinary demand, you may have a quarter of a correction and then return to long term growth,” he says. “This is okay if you are in the right markets and have the right customers. There are always ups and downs with demand as new capacity comes on stream but we take the long-term view that the market will absorb new capacity. We are committed to supporting our customers’ growth with the necessary investments to expand spunlace capacity.”