This year, Nonwovens Industry’s ranking of the top producers of nonwovens contains just seven U.S.-based companies six of which are listed among the world’s 12 largest producers of nonwovens, representing just under $10 billion worth of sales. Meanwhile, the six Chinese-based nonwovens producers mentioned in this report together achieved just  $1.6 billion worth of sales, and only one of these is among the top 10 producers of nonwovens in the world.

In recent years, some of our largest U.S.-based companies like Georgia-Pacific and First Quality Nonwovens were acquired by other nonwovens producers as the industry consolidated. More recently, Berry Global and Glatfelter—both major U.S.-based companies—merged to create Magnera, now the largest producer of nonwovens in the world.

This activity has just made the bigger companies bigger. A decade ago, the largest producer of nonwovens in the world, Avintiv, reported its annual nonwovens sales at $2 billion; today, the top two producers both achieve sales in excess of $3 billion, and much of their growth has been achieved through merger and acquisition activity.

Meanwhile, a look at the bottom half of the top companies shows much more stagnancy and, in fact, some smaller companies are actually reporting lower sales now than they did a few years ago, due to increased competition and divestments of parts of their businesses. Many of the companies represented here hail from developing countries like China and Taiwan, and their sales continue to hover in the $150-200 million range. Could the time be ripe for consolidation in this market?

It does seem, however, that Japan is in the midst of a reveral of sorts.  Japan, once a nonwovens powerhouse, is seeing several producers opting out of local production or the nonwovens market in general. This year will likely be Toyobo’s last year in the ranking as the company has already divested parts of its business and has indicated more streamlining is forthcoming. Another top Japanese producer, who wasn’t included this year, Unitika, has also said it plans to leave this market amidst intense competition from China, and, JNC Corporation has been sold much of its opreations to  a Chinese producer.

However, some Japanese companies seem to be trying to take advantage of these shifts. Japanese Wool/NIKKE, has expanded its network by acquiring parts of Toyobo as well as some other local companies, in an effort to grow its business, and Sieran, a maker of wovens and fibers, has purchased part of Unitika’s spunbond business. Could these consolidation efforts be the answer for companies from Japan (or elsewhere) to fend off competition in the global nonwovens industry?

As always, we appreciate your comments.

Karen McIntyre
Editor
kmcintyre@rodmanmedia.com