Plants: South Carolina, U.S., UK, China, India
Processes: Needlepunch, thermal bond, chemical finishes
Major Markets: Filtration, technical felts, laundry products

This will be the last time Andrew Industries appears in Nonwoven Industry’s Top Companies Report. In February 2014, the company was sold to Lydall, a Manchester, CT-based nonwovens producer, in a deal valued at $83 million. At the time of this purchase, Andrew reported its 2013 sales at $127 million.

For now, Lydall is keeping Andrew in tact, creating a third division, known as the industrial filtration division, to its business. Executives say the acquisition strengthens its position as an industry-leading global provider of filtration and engineered material products and diversifies the company’s end markets and geographic revenue base.

Prior to the acquisition Andrew was a leading global manufacturer and supplier of nonwoven filtration felt media and filter bags for industrial air filtration applications. In the U.S., these products were sold under brands Southern Felt while in Europe they are known as Andrew Webron and in Asia as China Felt Company.

The acquired business consists of operations in the U.S., the UK and China along with approximately 500 employees.

“The acquisition of Andrew Filtration expands our global footprint, adds complementary and new technologies as well as substantial scale that provides a platform for long-term growth and better positions us to deliver meaningful shareholder value,” says Lydall CEO Dale Barnhart.

Andrew’s core market, the industrial air filtration market has been strong compared to prior years as improvements in the domestic housing market drove demand for bag filters in the cement and asphalt industry. Additionally, strong demand for automobiles has given life to the steel and aluminum industries, driving demand for filtration.

Recent investments at the company include a new needlepunch line in September 2012. This new line gave the U.S. division—known as Southern Felt and based in Augusta, GA—the ability to produce a full range of technical filtration needlefelts as well as industrial felts. The new line has added six million square yards annually.

Meanwhile, Bondex, Andrew’s thermal bond business, has added new laminating and coating capabilities, giving the division better exposure in the electrical insulation market.

Looking eastward, Andrew’s Chinese arm was known as as China Felt, which comprises two manufacturing sites. Its first, located in Qingpu, was established nine years ago and enlarged with a second needlepunch line in 2011; the second site, in Wuxi, was acquired from Ahlstrom in 2011 and soon after upgraded with a state-of-the-art needlepunch line specifically for PTFE filter media.

Throughout Asia, the company has differentiated itself through innovative products, high quality felts and excellent customer service. Growth has also come from tighter environmental standards, which have created demand for filter felts.

Elsewhere in Asia, Andrew India, a converting operation begun in 2012, is now operational, producing a full range of filter bags from both needlepunch felts and woven fiberglass. Lamination equipment has also been commissioned giving Andrew India the capability to offer ePTFE laminated felts, wovens and spunbonds. Before being acquired, the company had announced a long-range plan to add a needlepunch manufacturing line there.

Plants: South Carolina, U.K., China, India
Processes: Needlepunch, thermal bond, chemical finishes
Major Markets: Filtration, technical felts, laundry products

Sales remained flat for Andrew Industries as falling raw material prices have lowered prices even as volumes have increased. At the same time, earnings met expectations but executives say it is becoming increasingly important to purchase wisely, lower manufacturing expenses and reduce waste.

“We are facing more and more competition from cheap imports that threaten our market and we must be diligent controlling costs,” says John Lewis, president of Andrew’s Southern Felt division.

Andrew’s core market, the industrial air filtration market strengthened in 2012 compared to the prior two to three years as improvements in the domestic housing market drove demand for bag filters in the cement and asphalt industry, Lewis says. Additionally, strong demand for automobiles has given life to the steel and aluminum industries, driving demand for filtration.

According to Lewis, filtration continues to be important to his company.

“Southern Felt actively participates in other markets but we are focusing resources on new markets such as fi re blocking and protective apparel,” he says. “We feel these markets offer the opportunity for niche products that we are capable of designing and manufacturing. Our core is filtration and will remain so while we diversify into other nonwoven fabrics for technical applications.”

Andrew’s U.S. division, Southern Felt, based in North Augusta, SC, commissioned a needlepunch line in September 2012, giving the division the ability to produce a full range of technical filtration needlefelts as well as other industrial felts. The new line has added six million square yards of capacity annually.

In other investment news, Southern Felt is actively pursuing specialized finished equipment needed for its Pleatloxx product line. This equipment will allow the company to penetrate the pleatable cartridge market with niche products.

Meanwhile, Bondex, Andrew’s thermal bond business, has added new laminating and coating capabilities, giving the division better exposure in the electrical insulation market.

Looking eastward, China continues to be a rapidly growing market but also a competitive one. For success, Andrew, which is known in China as China Felt, has differentiated itself through innovative products, high quality felts and excellent customer service.

“Our high technical and commercial integrity also separates us from some of our domestic competitors and is required by multinational and large OEM and end user customers in China,” Lewis says. “Yes, there is still growth potential in China as tighter environmental standards are put in action, thus creating more demand for industrial filter felts. We project growth being 5-6% annually for the next few years.”

In India, Andrew India, where the company began a converting operation in 2012, is now operational, producing a full range of filter bags from both needlepunch felts and woven fiberglass. Lamination equipment has also been commissioned giving Andrew India the capability to offer ePTFE laminated felts, wovens, and spunbonds.

“There are tremendous growth opportunities in India due to massive growth in infrastructure throughout the country,” Lewis says. “This internal growth, along with tighter emission standards, demand a high quality, reputable filter bag producer such as Andrew.”

In the next two to three years, Andrew intends to add needlepunch manufacturing equipment in India but until then the site will be supplied by the Chinese operation.

Meanwhile, in China, Andrew expects its new spunlace line at its Wuxi facility to be operational in early 2014 when it will enable the company to offer new innovative high efficiency media.