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Shimson St. Lexus House, 7th floor Petah Tikva 4952707 Israel
Since 1988, Avgol has led the global hygiene market with the most comprehensive range of ultra lightweight spun-melt non-woven fabrics.
Serving the baby diaper, adult incontinence and feminine hygiene markets, we are passionate about quality and service and contributing to the life and well being of hundreds of millions of babies, mothers and senior citizens around the globe.
An Indorama Ventures Company Tel Aviv, Israel www.avgol.com 2024 Nonwoven Sales: $450 million
Key Personnel Shachar Rachim, CEO, Indorama Ventures; Diego Boeri, executive president, Indorama Ventures’ Fibers Segment; Sivan Yedidsion, CEO of Avgol
Plants Israel, North Carolina, China, Russia, India
Major Markets Hygiene, medical
At the start of 2025, Avgol, an Indorama Ventures company, celebrated the opening of its high-speed, high-capacity flexible multi-beam nonwovens production line at its facility in Mocksville, NC. Representing a $100 million investment, this milestone underscores the company’s commitment to excellence and innovation.
“This is a very nice example of how our strategy to collaborate closely with leading industry players pays off. Thanks to our team’s customer intimacy, we are able to deliver market-driven innovation that meets current industry trends and helps our customers to respond to the needs of many end consumers in the baby diaper, adult incontinence and feminine care industry,” says Diego Boeri, executive president, Indorama Ventures’ Fibers Segment.
In addition to the new production line, the investment includes the installation of a state-of-the-art three-layer lamination line that further expands the company’s nonwoven composite capabilities. Engineered with precision temperature controls, high-speed bonding technology and an integrated quality inspection system, this advanced machine efficiently fuses three layers to produce lightweight, durable composites with exceptional strength and consistency. Designed to meet the highest quality and performance standards, it reinforces Avgol’s commitment to delivering top-tier products and setting new industry benchmarks in nonwoven composite manufacturing.
The inauguration of the new nonwovens line and the start of commercial production is a pivotal step in Avgol’s strategic roadmap, setting the stage for advanced manufacturing capabilities and enhanced production efficiency. “It is more than just an operational upgrade. It symbolizes our relentless pursuit of quality and innovation,” says Sivan Yedidsion, CEO of Avgol. “By bringing this significant investment to fruition, we are positioning our business to meet the growing demands of our market and drive our vision for the future.”
In addition to offering new capacity for high-loft products, the new line offers the latest Reicofil manufacturing technology with bicomponent capabilities and offers sustainable operations by increasing energy efficiency and reducing waste.
According to industry sources, the investment was originally planned for Uzlovaya, Russia, which was announced in June 2021 as part of a three-line investment at the site prior to the Russian invasion of the Ukraine.
Meanwhile, at its other global sites—in China, Israel and India—Avgol continues to upgrade and improve its operations. Notably, its biotransformation technology—developed with Polymateria—is being globally implemented in collaboration with key brands across various industries. This technology offers unique functionality allowing a conventional nonwoven fabric to be modified to react to certain triggers to then begin a cascade, and importantly a fundamental chemical transformation of the polymer resin into a wax that is readily degraded by natural bacteria, microbes and fungi normally found in the environment.
Through its 10-year partnership agreement with Polymateria, Indorama Ventures is applying Polymateria’s unique biotransformation technology to fibers and spunmelt nonwovens. Biotransformation is the world’s first biodegradation technology that is capable of delivering full biological consumption of polyolefin products in the open terrestrial environment. Polyolefin-based materials produced by this technology are especially useful for applications where materials may be leaked into the environment as unmanaged waste.
Plants: Israel, North Carolina, China, Russia, India Major Markets: Hygiene, medical
At the end of 2022, Avgol announced it would add a state-of-the-art, high-speed Reicofil 5 line at its Mocksville, NC, facility. It will be the company’s sixth line at the site, which was first acquired in 2001. According to executives, the addition of the new line will allow the company to have greater production capacity, delivering bicomponent materials that are ‘Made in America’ and offering more sustainable options for the growing North America market and around the world. This additional new line also enables the Mocksville facility to deliver additional meltblown nonwovens, ensuring it has extra capacity to meet market demand.
According to industry sources, the investment represents a line originally planned for Uzlovaya, Russia, which was announced in June 2021 as part of a three-line investment at the site prior to the Russian invasion of the Ukraine.
Through its 10-year partnership agreement Polymateria, Indorama Ventures is applying Polymateria’s unique biotransformation technology to fibers and spunmelt nonwovens. Biotransformation is the world’s first biodegradation technology that is capable of delivering full biological consumption of polyolefin products in the open terrestrial environment. Polyolefin-based materials produced by this technology are especially useful for applications where materials may be leaked into the environment as unmanaged waste.
At the end of 2022, Avgol announced it would add a state-of-the-art, high speed Reicofil 5 line at its Mocksville, NC facility. It will be the company’s sixth line at the site, which was first acquired in 2001. According to executives, the addition of the new line will allow the company to have greater production capacity, delivering bicomponent materials that are ‘Made in America’ and offering more sustainable options for the growing North America market and around the world. This additional new line also enables the Mocksville facility to deliver additional meltblown nonwovens, ensuring it has extra capacity to meet market demand.
According to industry sources the investment represents a line originally planned for Uzlovaya, Russia, which was announced in June 2021 as part of a three-line investment at the site prior to the Russian invasion of the Ukraine.
Earlier this year, Avgol parent company Indorama Ventures and Polymateria received the World of Wipes Innovation Award for technology, which can create completely biodegradable wipes that leave no harmful substance or microplastics behind.
Through its 10-year partnership agreement Polymateria, Indorama Ventures is applying Polymateria’s unique biotransformation technology to fibers and spunmelt nonwovens. Biotransformation is the world’s first biodegradation technology that is capable of delivering full biological consumption of Polyolefin products in the open terrestrial environment. Polyolefin-based materials produced by this technology are especially useful for applications where materials may be leaked into the environment as unmanaged waste.
“Once triggered, the material will continue to the point of forming the low molecular weight wax structure, leaving no microplastics behind to cause environmental problems,” explains Shachar Rachim, CEO of parent company Indorama Ventures. “Moreover, if the product comprising the biotransformation technology is not exposed to the triggering conditions of sunlight, heat, air and moisture, then it can be recycled by readily available means.”
In other partnership news, last year, Avgol forged a partnership with YanJanSA LLC, a professional material supplier to the disposable hygiene products market, to deliver exclusive product offerings to the North American market. Under the terms of the partnership, Avgol offers apertured spunbond products made exclusively by YanJan USA while YanJan USA uses base spunbond materials exclusively supplied by Avgol. The partners each develop and manufacture products tailored to their skill set and to meet customer needs while allowing each company to diversify their overall product ranges.
A manufacturer of spunmelt nonwovens with operations in North Carolina, China, Russia and Israel, Avgol continues to take a broad approach to ensuring a strong value proposition to its customers. Ranging from innovation projects addressing all three phases of material design—reduce, displace, replace—to its environmental impact (beginning of life, in use, end of life), the company has focused on a number of other sustainability touchpoints such as energy sourcing, production methods and sourcing.
Along with its parent company, Indorama Ventures, Avgol has focused on the development of sustainable manufacturing solutions and identifies the importance of supporting eco-friendly principles throughout the supply chain.
“We are seeing significant changes throughout the sector, and one of the most exciting is the drive towards closing the plastic loop,” says Tommi Bjornman, chief commercial officer. “The lifecycle of plastics has a great deal to do with how the consumer lives, but manufacturers have a significant responsibility too.”
Through its natureFIT family of technologies, Avgol has replaced several traditionally synthetic components with naturally derived alternatives to displace resin and polymer content with a specially designed mineral-based filler, bestowing cotton-like qualities into the material.
“We stand united with our sister businesses in pushing for a robust circular economy,” Bjornman adds. “We’ve already started to play our role in the development of our natureFIT model, and we count ‘reduce, replace, displace’ as one of our core tenements of business. By reducing the use of plastics, resins and polymers in the hygiene supply chain, we are working to safeguard the environment.”
Additionally, Avgol has been working with Polymateria to develop a pioneering biotransformation technology for nonwovens. This technology offers unique functionality allowing a conventional nonwoven fabric to be modified to react to certain triggers to then begin a cascade, and importantly a fundamental chemical transformation of the polymer resin into a wax that is readily degraded by natural bacteria, microbes and fungi normally found in the environment.
In investment news, in June 2021 Avgol announced a three-line investment at its Uzlovaya, Russia, operation to enhance its role in existing markets and help it expand into new areas.
While the company has not provided an update on the investment, which includes a Reicofil 5 spunbond line, meltblown equipment and a cutting edge laminator, since the Russian invasion in Ukraine, Carter reports that Avgol is closely watching all aspects of the conflict and how it is impacting its customers both in the region and across the globe. “Once we feel confident that a more predictable and steady-state business case for future investment is viable, we will then look at the most appropriate ways of moving forward,” he says.
Meanwhile, at its other global sites, Avgol continues to upgrade and improve its operations. Notably, its biotransformation technology is being globally implemented in collaboration with key brands across various industries.
“Avgol has always been a leader in the market for ‘more from less’ products, i.e., obtain more performance from less raw materials. We continue to utilize our knowhow to operate our lines to achieve such materials that closely link to sustainability goals of reducing total material consumption,” Carter says.
In the U.S., earlier this year, Avgol forged a partnership with YanJanSA LLC, a professional material supplier to the disposable hygiene products market, to deliver exclusive product offerings to the North American market.
Under the terms of the partnership, Avgol is now offering apertured spunbond products made exclusively by YanJan USA using its specific know-how and capabilities. YanJan USA will obtain the base spunbond materials exclusively from Avgol. The partners will each develop and manufacture products tailored to each company’s skill set and to meet customer needs while allowing each company to diversify their overall product ranges.
The big news from Avgol is a three-tier investment at its Uzlovaya, Russia, site which will enhance the company’s role in existing markets and help it expand into new areas. The largest part of the investment is the addition of a high-speed, high-capacity flexible Reicofil 5 spunmelt production line, which will provide greater production capacity for growing regional markets and support the release of new Avgol technologies, according Tommi Bjornman, CEO of Avgol.
“Serving the growing baby diaper, adult incontinence and feminine hygiene markets along with satisfying sustained demand for meltblown filtration and medical materials, this investment enables Avgol to deliver an improved degree of service across the entire area while consolidating and strengthening our existing position,” he says.
Avgol, an Indorama Ventures Limited company, offers a comprehensive range of ultra-lightweight spunmelt nonwoven fabrics to the global hygiene market. The latest investment, Avgol’s third line in Russia, will include bicomponent and corresponding high-loft capabilities thus producing materials for applications that meet the needs of upper tier products for hygiene customers.
In addition to the Reicofil 5 line, Avgol will add a meltblown line as well as a new line offering cutting-edge lamination capabilities at the Russia site. These investments will not only enhance Avgol’s offerings to its existing markets but will also allow it to explore new opportunities in other markets.
“The RF5 line, meltblown line and lamination capabilities will provide us a powerful set of platforms as a base from which to provide high-value products for our customers,” says Bjornman. “It will enable us to further diversify the Avgol innovation portfolio while remaining true to our roots.”
The investment will also significantly support further sustainable product development in Avgol, under its innovative FIT (Forward Innovative Thinking) strategy. “Avgol is committed to the future of nonwoven fabrics with a particular focus on bringing polyolefins forward as viable resins in single use articles,” he says. “We are excited to bring new assets, new capabilities, and new technologies that will challenge customer expectations of the nonwoven fabric industry.”
This investment will make the Russian production facility the second largest site for Avgol after the company’s North American site in Mocksville, NC.
In India, Avgol announced in late 2020 it would relocate an existing asset from Israel to India as part of an immediate strategic investment in the region.The move is part of the company’s commitment to continue increasing its presence and service across India and South Asia. The investment in new production capacity would also support further product development from Avgol, under its innovative Forward Innovative Thinking strategy (FITTM). The research and development program creates value, flexibility and sustainability for brands and manufacturers from the outset.
The relocation is expected to be complete by the end of 2021.
Avgol entered the market in India in 2018 when it completed its first spunmelt line, which was reported at the time to be a non-Reicofil asset. At the time, the company said the investment was intended to help support existing customers as they entered the Indian market.
Avgol recently launched natureFIT family of technologies as part of its FIT platform. This exemplifies its strong focus on sustainability which matches that of the consumers. The natureFIT portfolio enables more effective value-driven product development across hygiene applications, while reducing environmental impact in terms of resources and waste.
Additionally, beneFIT Defense, a nonwoven substrate technology, responds to global antimicrobial and viral control needs, which have become accelerated as the world moves towards ‘the new normal.’ Another significant step for the business is how the company approaches development of technologies. “We are collaborating much more closely with academia and new businesses arriving to the market,” he says. “We believe this synergistic development will sharpen focus and further prepare Avgol for effective NPD as we boost capacity.”
Avgol’s Waveform 3D technology, beneFIT and comfortFIT platforms have all entered development programs with a number of brands for new products in 2020-2021. While Covid-19 has led to some delays in new product development for the sector, Avgol is in a fantastic position and poised to continue this momentum including the new sales for PPE materials.
In 2018, Avgol was purchased by chemical specialties supplier Indorama Ventures Ltd, joining other companies throughout the hygiene supply chain. This has allowed Avgol to benefit from synergies between the companies.
Strong growth in all sectors of the hygiene category has led to impressive growth for Avgol. The company reported 2019 sales reached $400 million and is expected to continue this upward trajectory leading to regionalized organic growth.
“We’ve had a successful year on several important fronts, maintaining our presence as a global leader in the manufacture of high performance, lightweight nonwoven fabric solutions for the hygiene market,” says director of market intelligence Nick Carter. “The proportion of lightweight material to standard has increased by a double-digit percentage and our innovative FIT platform is continuing to make developmental inroads. “
“We also have access to highly detailed global market data, which gives us more precise analyses and projections to work from, which strengthens our offering and allows more selective avenues for product and technology development,” Carter says. “IVL’s ownership and infrastructure also gives Avgol a great deal of support in broadening out into alternative markets, where the business can use its technologies to bring high added value solutions.”
Avgol’s global nonwovens manufacturing footprint includes facilities in North Carolina, China, Russia, India and Israel. In recent years, rather than invest in large-scale production lines, the company has been enhancing existing lines to make new products with a strong focus on sustainability.
“Crucially for us, our global operations are aligned with our ‘reduce-displace-recycle’ program which reframes the discussion on sustainability in nonwovens to create hygiene solutions with a much lower environmental impact. The new capabilities being brought on-line will increase the availability of higher performance materials by region.”
In terms of end use markets, hygiene continues to be Avgol’s primary segment the global demand for medical and PPE substrates is here to stay and has required rapid flexing of Avgol assets and technologies to maximize our opportunity. Avgol is currently maintaining a low-key approach to seeking additional business in new market sectors due to its full loading for the sustainable hygiene sector and meeting the substantial incremental demands for protective components, as well as organic growth in core markets.
“Fresh thinking and technological advancement are the lifeblood of Avgol,” Carter adds. “The market doesn’t stay still for long, which means we must be just as agile and responsive in our offering.
Israel’s largest nonwovens producer, Avgol, now majority owned by multinational chemical producer Indorama Ventures Group, continues to make spunmelt nonwovens primarily for hygiene applications. Indorama acquired a 65.72% stake in Avgol in July 2018.
“Avgol is a unique fit for Indorama,” says Nick Carter, director of market intelligence. “It brings them one step closer to the customer and they can provide us with superior knowledge of the polymers.”
Indorama Ventures is already the owner of a number of nonwovens industry raw material suppliers including FiberVisions, Wellman International and Trevira.
According to Carter, Avgol has been able to remain fairly autonomous under Indorama’s ownership. As it has with its other subsidiaries, Indorama has allowed Avgol to continue its best practices to serve the global hygiene industry.
“Indorama is not about having us conform to their way,” he says. “It’s more about us showing them what we have and what we can do.”
With existing operations in North Carolina, Russia, Israel and China, Avgol’s latest frontier is India where it recently completed work on a spunmelt line for local hygiene markets. The investment is the first non-Reicofil line in operation by the company. It came onstream in 2018.
“India was a very important step for us,” Carter adds. “For us the focus of this investment is not really promoting new products but providing our customers with a means of developing the products they need to serve consumers in India.”
A combination of a strong birth rate—with 20 million babies being born annually—and government incentives for product development, India is rapidly becoming a strong growth market for baby diapers and other hygiene products.
Approximately 97% of Avgol’s business is in the hygiene market, where the company says it is very passionate about quality. This passion has guided Avgol in leading an industry-wide effort to decrease the weights of core wrapping materials to as low as seven gsm.
Throughout its entire business, Avgol has been seeking to develop new products and new technologies that respond to the changing needs of the hygiene market. In January, the company launched a range of breathable fabrics which exceed the performance of current commercially available spunmelt SMS materials. The development is in line with Avgol’s Forward Innovative Thinking (“FIT”) strategy for new product innovation.
“The enhanceFIT family is being developed to meet evolving product designer needs for lighter weight fabrics, having improved elasticity, barrier and breathable performance properties,” Carter says. “This family is based on multiple technology platforms that allows Avgol to tailor fabric performance for the needs of specific markets, including hygiene, medical and industrial applications.”
enhanceFIT Breathe is the first in a line of new fabric solutions resulting from Avgol’s recent developments in new assets and technology. The fabrics demonstrate enhanced uniformity with corresponding improvements in barrier, appearance and coverage in materials less than 25 gsm, without relying on cumbersome submicron filament fabrication methods. In practical applications, downgauged fabrics are now available that have previously required higher basis weights to achieve air permeability specifications.
According to Carter, the FIT Strategy was born out the customers’ demand that it innovate, which has partially been the result of ecommerce-driven need for differentiation. “The days of nice 24 hour runs of material are going to be fewer. We are seeing more niche products and shorter runs,” he adds.
Through this focus on new technologies, Avgol has also developed beneFIT Control, an antimicrobial solution for nonwovens.
beneFIT Control was developed to aid in contamination, discomfort and odor by controlling the microbial activity within hygiene applications, including diapers, adult incontinence and feminine care products. It is part of the beneFIT family of functional skin wellness technologies, a new range of chemistries and processes developed by Avgol to deliver superior performance and comfort to consumers.
Carter says that the development of new technologies to enhance its product range is part of its aggressive strategy to win new customers. “Our customer base is changing but so are the people that design our products,” he said. “The biggest influence will be the next generation of hygiene customers and how they perceive value.”
Israel’s largest nonwovens producer, Avgol, has been acquired by multinational chemical producer, Indorama Ventures Spain SL. The private corporation, affiliated with Indorama Ventures Public Company Ltd, part of the Indorama Ventures Group, acquired a 65.72% stake in Avgol in July this year.
Indorama Ventures is already the owner of a number of nonwovens industry raw material suppliers including Fibervisions, Wellman International and Trevira.
“We are excited by the unique opportunity to bring Avgol into the Indorama Ventures family as it is a major step into expanding our HVA portfolio,” says group CEO Aloke Lohia. “With this acquisition, we are adding a company that has a distinctive position within a compelling segment and with strong growth prospects. Avgol has already made some significant investments to grow the business by expanding its production capacity and geographical footprint and we hope to capture the benefits and help the company reach further heights. Avgol’s established client base, complementary capabilities and substantial presence in high-growth markets, together with Indorama Ventures’ global presence, will provide a strong opportunity for creating additional value to best serve all of our customers.”
With existing operations in North Carolina, Russia, Israel and China, Avgol’s latest frontier is India where it recently completed work on a spunmelt line for local hygiene markets. The investment is the first non-Reicofil line in operation by the company.
“For Avgol, to get into India was a very exciting development,” says David Meldram, CEO. “We started to explore the opportunity to operate in India six years ago and we waited until the right time to execute. We hope it is the first of many investments in India.”
Approximately 97% of Avgol’s business is in the hygiene market, where the company says it is very passionate about quality. This passion has guided Avgol in leading an industry-wide effort to decrease the weights of core wrapping materials to 7 gsm.
“We aim to be a creative partner of choice for our strategic customers to develop the next generation of products and deploy them globally,” says Tom Dort, vice president of technology. “Research and development is at the heart of everything we do.”
This spring, Avgol introduced Waveform 3D technology, a unique process which modifies nonwoven fabrics for hygiene applications. The technology enables varying three-dimensional composition within flat fabrics, providing enhanced performance and comfort. The technology imparts beneficial fiber structures with decisive surface patterns to provide benefits like advanced skin wellness, increased cushioning and enhanced cotton feel.
Additionally, its beneFIT Control antimicrobial solution was launched at ANEX 2018. This tailor-made, next-generation technology has been developed to aid in contamination, discomfort and odor by controlling the microbial activity within hygiene applications, including diapers, adult incontinence and feminine care.
beneFIT Control is part of the beneFIT family of functional skin wellness technologies, a new range of chemistries and processes developed by Avgol to deliver superior performance and comfort to consumers. beneFIT Control can be used in tandem with other of Avgol’s FIT technologies to enhance functionality even further.
Described as an adaptable solution to infection, contamination and spoilage in healthcare settings, beneFIT Control has a unique ability to minimize the impact on natural and normal skin flora while maximizing effect on troublesome organisms. Most other antimicrobial technologies are not selective in their function, resulting in all the microbials being killed or limited all the time.
beneFIT Control technology has been designed with the disposable hygiene product specifically in mind. During testing, beneFIT Control has demonstrated multiple advantages in comparison to conventional solutions. Fabrics utilizing the new technology provide a fast response ideal for the short duration of use that hygiene products typically have and retains a bright white appearance desired by consumers.
The big news from Avgol is the Israel-based company’s expansion into India. In April 2017, following much industry speculation, Avgol confirmed that it would add a new site near Mandideep, India. While the company has not offered any details on the size or technological scope of the new line, director of sales and marketing Shane Vincent said it came at the request of a major customer.
In addition to India, Avgol operates lines Israel, China, Russia and North Carolina. Its most recent investment is a new line at a new site in Dimona, Israel. The new line, which came onstream earlier this year, added about 18,000 tons of Reicofil 4 SMMS nonwovens, to better serve its customers in Europe an the Middle East.
According to Gilad Frenkel, vice president of sales and marketing, Avgol is focused on growing its multinational presence and strengthening its position within the EMEA and LA regions. “To do this, we need to have world-class operations that will allow us to deliver the very best new product developments that are demanded by our customers in what is a very diverse market,” Frenkel says.
The new line will allow Avgol to offer a wider choice of materials and solutions that demonstrate its expertise and which respond to changing consumer and brand requirements. This innovation is being driven by customer desires becoming clear needs and requirements, Frankel adds.
“There has been a shift towards innovation that addresses customer preferences in terms of softness, dryness, leak prevention, cost/value and light weight,” he says. “Striking the balance between softness and weight is a key challenge for manufacturers and consumers place a high premium on comfort. Once they find it, they are very brand loyal and Avgol’s cutting-edge soft technologies enable us to deliver high performing, soft-touch products around the world meeting this need.”
The new site in Dimona will likely become Avgol’s Israeli hub. In July, the company announced it had sold its other Israeli site in Barkan under a lease back agreement. Avgol is retaining ownership of the six lines located at the site.
Beyond Israel, Avgol has invested in new lines throughout all of its sites. Recently, the company added a second line in Uziovaya, Russia, which came onstream in late 2014 and a fifth line in Mocksville, NC in late 2016, which targets the hygiene market.
Plants: Tel Aviv, Israel, Dimona, Israel, Mocksville, NC; Jingmen City, Hubei Province, China; Uzlovaya, Russia Major Markets: Hygiene, medical
With plans for at least two new lines finalized, Avgol Nonwovens continues to focus on growing its share in the global hygiene market where it continues to expand its product offerings to penetrate more areas of the diaper and other items.
“We have been known for lightweight/core materials but we have been diversifying into other materials like backsheets and topsheets,” says Shane Vincent, vice president of sales and marketing.
With manufacturing operations in Israel, North Carolina, China and Russia, Avgol is solely focused on Reicofil spunmelt nonwovens for hygiene applications.
In April, Avgol announced it would build a new facility in its home country of Israel, where it had not invested in more than a decade. This latest line, which will be based on SMMS Reicofil 4 technology, will be housed at a new site in Dimona, Israel. It will be capable of making 18,000 tons of material per year when it comes onstream during the first half of next year.
“We hadn’t made an investment in Israel for a long time but it is still where our headquarters are located,” Vincent says. “We are traded on the Tel Aviv stock exchange. Israel and the entire region continue to be important to us.”
Also important to Avgol is North America where it is in the process of adding its fifth line in Mocksville, NC, which should be complete before the end of the year. Like the Israeli investment, this new line will be based on Reicofil 4 technology to target the hygiene market. Avgol has had a U.S. presence since 2002, when it acquired the Mocksville site—along with one spunmelt line—from Unifi. The company has invested steadily to this operation since then.
Other recent investments from Avgol include a second line in Uzlovaya, Russia which came onstream in late 2014 and a third line in China in mid 2013. While the industry rumor mill insists that Avgol has also finalized plans to construct a spunmelt line in India, executives would not comment on these efforts.
Capital expansion is not Avgol’s only strategy for growth. The company focuses its research and development efforts around four key pillars—softness, fluid management, cost optimization and fit, according to Vincent. “All of this is driven by customers and their requests,” he adds. “The Asian market has really become a benchmark for us. Everyone is following Asia and the trend toward softer diapers.”
For Avgol, this has led to the creation of the Avgol Lux family of nonwoven fabrics, which offer hygiene products’ manufacturers a way to create a new visually distinct soft touch fabric solution. Suitable for topsheet, backsheet and leg cuff applications, as well as ear and landing zone substrates, the Avgol Lux includes a range of products offering soft touch, smoothness and cotton-like softness. The range, which has achieved great market feedback, was recently launched in Asia.
Plants: Tel Aviv, Israel; Mocksville, NC, U.S.; Jingmen, City, Hubei Province, China; Uzlovaya, Russia Processes: Spunbond, meltblown, hydroentangled spunlace Brands: Zebra, Avspun, Avsoft Major Markets: Hygiene, medical, construction
Plans are underway at Avgol to add its fifth line in Mocksville, NC. The line, which will represent a reported $40 million investment, will be the fifth line at the site purchased in 2002 by Unifi. The site’s current capacity is over 60,000 tons.
According to reports, Avgol considered all of its global sites—China and Russia—for the expansion, but chose the North Carolina site because of state and local incentive packages.
Beside the U.S. investment, Avgol’s latest expansion was a second line to its site in Uzlovaya, Russia last year and other efforts have centered on improving operating efficiencies on its existing lines, particularly in North America.
In 2014, the company’s sales decreased from $342 million to $319 million largely due to currency fluctuations. Based in Tel Aviv, Israel, Avgol is one of the world’s largest makers of spunbond nonwovens for the global hygiene industry.
In China, the company’s third line came onstream in mid-2013 and has since helped Avgol’s expansion in Asia, which has also been aided by Chinese line investments in 2011 and 2008. While growth in China has been slower than expected, Avgol has been shipping the reported 40,000 tons of materials made at the site around the world, a situation that has been hurting profit margins. However, the completion of the Russian site—which will add 20,000 tons to that region—as well as the addition of the new line in the U.S. should lessen the need for this.
Plants: Tel Aviv, Israel; Mocksville, NC, U.S.; Jingmen, City, Hubei Province, China: Uzlovaya, Russia Processes: Spunbond, meltblown, hydroentangled spunlace Brands: Zebra, Avspun, Avsoft Major Markets: Hygiene, medical, construction
As its waits for its second Russian line to come onstream later this year, Avgol Nonwovens, Israel’s largest producer of nonwovens, continues to work on improving operating efficiencies on its existing lines, particularly in North America, where it operates a four-line facility in Mocksville, NC. In 2013, the company’s sales increased 9% to reach $342 million. Profits, meanwhile, declined 9% to $57 million.
Based in Tel Aviv, Israel, Avgol is one of the world’s largest makers of spunbond nonwovens for the global hygiene industry with facilities in Israel, North Carolina, China and Russia.
During the second quarter of 2013, the company’s third Chinese line, located in Hubei Province, completed the qualification process and began contributing to Avgol’s bottom line.
Avgol now operates 3 lines in China at a site it has operated since 2005 through a joint venture with Hubei GoldDragon. A second line was added to the site in 2011. According to company reports, growth in China has been slower than expected and a portion of the products made at this facility, which is now capable of making 40,000 tons of material per year, is currently serving demand in North America, a situation that is hurting profit margins.
However, the company has been focused on improving its operating efficiencies to increase capacity being made in the U.S. market. Once this project is complete, it should positively influence Avgol’s profit margins.
Also in the works is Avgol’s second line in Russia, a market described as robust by company officials. Line number two, which is expected to begin operation by the end of 2014, will meet demand for nonwovens in Russia and other adjacent markets when it adds approximately 20,000 tons of capacity to the site. Avgol entered the Russian market, where it is located in Uzlovaya in late 2007 to better serve emerging markets in Eastern Europe, Russia, the Ukraine and other “-stan” countries.
Plants: Tel Aviv, Israel; Mocksville, NC; Jingmen, City, Hubei Province,; China; Uzlovaya, Russia Processes: Spunbond, meltblown, hydroentangled spunlace Brands: Zebra, Avspun, Avsoft Major Markets Hygiene, medical and construction
Sales decreased slightly for Israeli-based Avgol Nonwovens due to a decrease in the average selling prices of its nonwovens. The company, in fact, reported an increase in sales volumes in 2012 due to the start up of new plants in China and the U.S.
“Avgol has concluded a year of growth in its production capacity and an increase in the quantity of nonwoven fabrics that we sold to our customers compared to last year,” says Shlomo Liran, Avgol’s CEO. “Avgol continues to show an increase in sales compared to last year after neutralizing the volatility in the raw material prices throughout the year.”
For the full year, sales decreased about 4.4% from $329 million to $315 million. Gross profi t was $63.2 million, which declined due to low operating effi ciency in the U.S.
Liran says, “Demand for our products continues to be favorable with many of the products and solutions that we offer to our customers being at the forefront of technology, an advantage that helped us considerably when working with our customers during a challenging year.”
At the end of 2012, the controlling interest in Avgol changed when a new major shareholder, HFH International, took over the company from Israel Petrochemcial Enterprises.
With six older lines operating at its Israel headquarters, Avgol operates sites in North Carolina, China and Russia, from which it serves global hygiene markets. Recent investments include a fourth line in North Carolina and a third line in China and executives have hinted at the possibility of a second line in Russia where it began making nonwovens in Uzlovaya in late 2007 to better serve emerging markets in Eastern Europe, Russia, the Ukraine and other “-stan” countries.
Meanwhile, in the U.S., Avgol’s fourth line began operation in Mocksville, NC in August 2012. The new line added 15,000 tons of capacity to the site. Combined with another 15,000 tons added in China around the same time, Avgol’s capacity increased 30% in 2012 to reach 140,000 tons.
Avgol first entered the U.S. market in 2001 when it purchased an existing spunbond line from textile maker Unifi. The company has continuously added to the site since then, becoming a leading player in the hygiene market in the Americas. The Chinese site was started in 2005 as a joint venture agreement with Hubei Gold Dragon. A second line was added to the site in 2011.
Since the establishment of this Chinese arm, Avgol has invested heavily in new lines and steadily increased its ownership position in the company, which now stands at 83-84%. With the establishment of the third line, the site can make 40,000 tons of nonwovens per year.
“It should be noted that, coupled with the robust demands in China, we are beginning to see entry by global companies that are investing in the construction expansion of plants in China and we believe that we will be seeing increasing competition in this territory,” Liran says. “Such competition will benefit the entire diaper industry operating in China and will deepen the penetration into additional population segments that have not been using diapers until now.”
Beyond China and Russia, Liran admits his company is considering entering other areas that show similar levels of growth potential. These include India, where customers indicate that the market is expanding and a surge in growth is expected to occur soon due to a high infant population.
“Avgol’s momentum in substantial strategic investments in new infrastructure last year with the establishment of two production lines in China and the U.S. will ensure the strengthening of Avgol’s business and competitive positioning and improve profitability in coming years,” Liran says. “Notwithstanding, the investment of some $52 million in the new production lines in 2011, Avgol’s level of leveraging did not increase significantly and its strong and stable financial position will also enable the company to prepare for strategic moves in the market, if needed.”
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