Fibertex Nonwovens invests DKK 300m in North America

Aiming to capitalise on the booming
demand for advanced nonwovens seen in recent years, Danish industrial group
Fibertex Nonwovens is investing DKK 300 million to expand its output capacity
and meet the growing need for local production of nonwovens in North America.
At the same time, Fibertex Nonwovens has acquired an 84-acre industrial plot
adjacent to its existing facilities in South Carolina with a view to expanding
further to accommodate demand from North American global brands.

Fibertex Nonwovens, owned by the
Danish industrial conglomerate Schouw & Co., is investing DKK 300 million
to expand its output capacity for the North American market. The company has
invested heavily in its US presence in recent years: in 2019, Fibertex
Nonwovens acquired state-of-the-art spunlacing production facilities in South
Carolina and last year, the company added a new production line at the site
based on advanced needlepunch technology.

The new investment will include a
high-capacity state-of-the art line based on spunlacing, a technology in which
Fibertex Nonwovens is a global leader, using sustainable raw materials and
adding unique properties. In addition, the company has acquired an 84-acre
industrial plot adjacent to its existing facilities in South Carolina, aiming
to secure future expansion opportunities that will benefit its customers.
Fibertex Nonwovens aims to build a strong position in the North American
market, and this new investment is expected to bring revenue from its US
operations to more than DKK 1 billion within a few years.

“Over a period of more than 50 years,
nonwovens have evolved into high-tech performance materials used in a wide
range of sectors. In 2020, the coronavirus pandemic led to a dramatic surge in
demand for PPEs and disinfection products for the healthcare sector, an area
where we’re a frontrunner providing innovative products based on spunlacing,
advanced needlepunch, nano and other value-added technologies,” explains
Fibertex Nonwovens CEO Jørgen Bech Madsen, speaking from the company’s head
office in Aalborg, Denmark.

“The global nonwovens market saw
substantial growth in 2020, in part driven by the coronavirus pandemic, and we
expect to see it grow by a further 8 per cent annually during the period to
2026, regardless of how the coronavirus pandemic evolves. Especially the North
American market is set to see a surge in growth, with demand exceeding supply
even before the coronavirus crisis. Fibertex Nonwovens is a major supplier to a
wide range of global brands in this market. 
That’s why we see a special potential in building local production in
this market to serve our many customers demanding sustainable products with
unique properties,” said Bech Madsen, and he continues:

 â€œMarket trends are finding support in
the added focus on health and hygiene, more emphasis on local production and
added focus on sustainability, which is also to our benefit. With this new
investment, we’ll be able to build an extremely strong position in the
important North American market for, among other things, high-performance wipes
for sanitizing and disinfection purposes in the healthcare/medical sector,
sustainable personal care products, a range of industrial applications as well
as in the automotive industry and the construction sector.”

The additional capacity will be based
on the spunlacing technology, where the fibres of the non-woven textiles are
entangled using high-speed jets of water, and installed at the company’s site
in Greenville, South Carolina. This is a technology Fibertex Nonwovens has been
perfecting for a number of years and one of the reasons why the company is a
market leader within special-performance materials and value-added solutions.

“We have a lean, technologically
advanced production setup, focused on value-added innovation. Our North
American operations are based in South Carolina and Illinois. Our strategy is:
The Right Technology at the Right Location, which is appreciated by our
customers in the automotive industry, the healthcare sector and the
construction and filtration industries in the USA, Brazil, France, Denmark, the
Czech Republic, Turkey and South Africa,” notes Bech Madsen.

Aiming to boost revenue to DKK 2.5 billion

Fibertex Nonwovens operates in a
broad range of industries, and ongoing capacity investments and innovation are
inherent to its ambitious growth strategy. The investment in the USA forms part
of its vision World leader in advanced nonwovens and high-performance
solutions, the ambition being to grow revenue from the current level of about
DKK 1.8 billion (2020) to some DKK 2.5 billion by 2026:

“Fibertex Nonwovens holds huge
potential, which we’re currently unfolding. The coronavirus pandemic has made
what we do even more relevant, and this demand is here to stay. In other words,
there’s enormous growth potential, and we intend to build on our current
position, especially in advanced and high-tech performance materials,” says
Jens Bjerg Sørensen, President and CEO of Schouw & Co. and he continues:

 â€œAt Schouw & Co., we have the
resources and the commitment to continue the ambitious growth journey for
Fibertex Nonwovens. We believe we can identify additional capacity-expanding
investments over the coming years and potentially also acquisitions that’ll
secure a solid, long-term return for Fibertex Nonwovens.”

The investment to increase the capacity
in the USA will not affect the revenue and earnings guidance for the current
financial year.

Facts about Fibertex Nonwovens

Fibertex Nonwovens is among the
world’s leading manufacturers of special-purpose nonwovens produced on
high-tech processing facilities with various purpose-specific post-processings.
The processed materials are used in cars, the construction industry, for wipes
and face masks as well as for filtration solutions, in which they often replace
heavier and more environmentally harmful alternatives.

Fibertex Nonwovens is wholly owned by
Schouw & Co. and headquartered in Aalborg, Denmark, where the business was
founded in 1968. The company generates annual revenue of DKK 1.8 billion (2020)
and has production facilities in Denmark, Brazil, France, the Czech Republic,
Turkey, the USA and South Africa as well as sales subsidiaries in France,
Portugal, Spain and China.