HHS Division Plants: U.S. and Canada: Augusta, KY; Benson, NC; Dalton, GA; McAlester, OK; Mooresville, NC; Nashville, TN; North Bay, Canada; Old Hickory, TN; Statesville, NC; Washington, GA; Waynesboro, VA
Latin America: Atlacamulco, Mexico; Cali, Colombia; Jundiaí, Brazil; Pilar, Argentina; Pouso Allegre, Brazil; San Luis Potosí, Mexico; São José dos Pinhais, Brazil
EMEIA: Aberdare, U.K.; Aschersleben, Germany; Bailleul, France; Berlin, Germany; Biesheim, France; Cujik, Netherlands; Dombühl, Germany; Maldon, U.K.; Neuville-en-Ferrain, France; Tarragona, Spain; Terno d’Isola, Italy
Asia: Nanhai, China; Suzhou, China

In February, Berry Global Group, a multi-national manufacturer of nonwovens with plants around the globe, announced its intent to join forces with Glatfelter Corporation, a maker of airlaid and spunlaced nonwovens, to add value to their shareholders and create innovative polymer and fiber-based solutions to their customers. Under the agreement, which is expected to be finalized later this year, Berry’s Health, Hygiene and Specialties (HHS) segment, which includes its nonwovens and films businesses, will merge with Glatfelter, creating a leading publicly-traded company, to be known as Magnera, in the specialty materials industry.

Together, the two companies, which are both based in the U.S., operate 45 manufacturing sites globally, spanning a range of nonwovens and nonwovens-adjacent technologies focused strongly on healthcare, hygiene, wipes and specialty end markets. Following the deal, Berry shareholders will control 90% of the company. Curt Begel, president of Berry’s HHS business, will serve as CEO of Magnera, while the upper management team will consist of a combination of Berry and Glatfelter executives. Combined revenues are projected at $3.6 billion.

“This announcement is the culmination of a comprehensive review of strategic alternatives to determine the value-maximizing path forward for Berry shareholders,” says Kevin Kwilinski, Berry’s CEO. “We believe these two businesses, in combination, can drive significant value for shareholders with complementary portfolios, positioning each for greater success. Following the completion of the transaction, (Magnera) will become a pure-play provider of innovative, sustainable global packaging solutions, which we believe will deliver even more predictable earnings growth for Berry shareholders. Additionally, we believe HHNF in combination with Glatfelter will thrive as an independent company that is positioned to drive long-term growth with its global brand-owner customers.”

The merger announcement came less than six months after Berry reported, in September 2023, that it would review strategic alternatives for its HH&S segment as part of an effort to focus more squarely on its global packaging business. According to Kwilinski, the deal with Glatfelter was chosen because it is able to create substantial value for Berry shareholders as well as a clear path for the company to capitalize on growth within the nonwovens industry.

While Berry’s nonwovens business has faced challenges in the past 12 months due mainly to the impact of ambitious growth and investment during the Covid-19 pandemic and supply chain challenges, the company expects to see low- to mid-single digit growth in the near term.

“As the industry comes to a little bit of a reset—as you can see from some of the major CPGs—we are seeing much more balanced opportunities from a volume standpoint,” Begel says. “The long-term growth dynamic is to continue to produce innovative products and an improved mix to our customers.”

The combined platforms of the two companies offer complementary sustainable fiber- and polymer-based materials. Glatfelter, as the world’s largest manufacturer of airlaid nonwovens, counts wood-based pulp and cellulose as its key raw materials, while a large portion of Berry’s output is focused on spunmelt nonwovens for healthcare and hygiene applications, which are largely polypropylene-based.

“What each of the companies longed for and didn’t have, we now have and it’s creating an opportunity to bring more solutions to our customers,” Begel adds.

Since acquiring the nonwovens business from Avintiv in 2015, Berry has made two major acquisitions within the packaging side of its business—RPC in 2019 and AET in 2016— that have helped it achieve its goal of creating a global presence and scale to be a more effective competitor on the world stage. Meanwhile, the nonwovens business, with its cyclical nature and intense capital investments, has not fit as well into the company’s overall scope.

“When we make an investment (in HHS), it is much larger in scale,” Kwilinski says. “If we put in an injection line or a thermobonding line, it might be a $10 million investment, but to put in a unit of capacity in the HHS business, it’s more on scale of eight to 10 times that. That created a lumpiness as that capacity comes online and the market is absorbing it, especially if others are making investments at the same time. That created a lot more volatility of earnings and that is the core issue of this business being a part of Berry.”

In recent years, Berry has made several significant investments in its nonwovens business including two state-of-the-art spunmelt lines in Nanhai, China, and a sustainably-focused spunlace line in Cujik, the Netherlands. Additionally, during the Covid-19 pandemic in 2020-2021, Berry added several lines globally dedicated to the production of meltblown nonwovens, the key material used in face masks and respirators.

While these investments have increased Berry’s global capacity, they have also allowed the company to offer new features to its customers across all of its core markets. Within hygiene and healthcare, the two Reicofil lines in China have added capabilities to improve softness, sustainability, barrier, cloth-like appearance, improved visual function and improved cost-effectiveness. In spunlace, the new asset in the Netherlands offers several unique characteristics such as the company’s proprietary Apex technology, which provides best-in-class debossing on any fabric with the flexibility of design to create a range of attributes including visual, tactile and functional performance enhancements. Its central European location also offers reduced transportation-related environmental impact.

For the fiscal year ended 2023, sales within Berry’s Health, Hygiene and Specialties segment decreased from $3.1 billion to $2.6 million. Operating income also decreased significantly during the period. The decreases were primarily attributed to lower selling prices as well as a 7% volume decline, caused by general market softness and customer destocking.

HHS Division Plants: U.S. and Canada: Augusta, KY; Benson, NC; Dalton, GA; McAlester, OK; Mooresville, NC; Nashville, TN; North Bay, Canada; Old Hickory, TN; Statesville, NC; Washington, GA; Waynesboro, VA
Latin America: Atlacamulco, Mexico; Cali, Colombia; Jundiaí, Brazil; Pilar, Argentina; Pouso Allegre, Brazil; San Luis Potosí, Mexico; São José dos Pinhais, Brazil
EMEIA: Aberdare, U.K.; Aschersleben, Germany; Bailleul, France; Berlin, Germany; Biesheim, France; Cujik, Netherlands; Dombühl, Germany; Maldon, U.K.; Neuville-en-Ferrain, France; Tarragona, Spain; Terno d’Isola, Italy
Asia: Nanhai, China; Suzhou, China

Processes: Spunbond, meltblown, SMS, carded, composites, through air bonded, adhesive bonded, resin bonded, thermal bonded, spunlace, airlaid, aperture film, film laminates, sonic laminates, extruded laminates, thermal laminates, Apex, Spinlace, Meltex, Reemay and other proprietary fabric forming, surfacing and binding systems, nonwoven and film printing, multi-layer blown film extrusion, and cast film extrusion.

Note: In addition to these specific roll-good technologies, Berry Global also offers one of the world’s leading rigid and flexible packaging portfolios for both consumer and industrial applications.

The world’s largest nonwovens producer, Berry Global attributes its global scale to its ability to mitigate the many challenges experienced in nonwovens in recent years. In 2022, sales of its Health, Hygiene and Specialties division grew about 3%.

Recent highlights from the Evansville, IN-based company include the completion of a new spunlace line in Cujik, The Netherlands, the startup of its second Reicofil 5 spunmelt nonwovens line for hygiene and healthcare applications in China and significant advances in its sustainability portfolio.

“We pride ourselves on investing intelligently, i.e., where the market needs capacity and/or capabilities. We have recently commercialized two Reicofil 5’s in China, a state-of-the-art spunlace asset in Europe and we plan to commercialize additional print capacity in the U.S. in late 2023,” says Paul Harmon, EVP, product management, innovation & sustainability.

While recent investments have increased Berry’s global capacity, they have also allowed the company to offer new features to its customers across all of its core markets. Within its hygiene and healthcare business, Berry’s latest two Reicofil 5 assets have added capabilities to improve softness, sustainability, barrier, cloth-like appearance, improved visual and functional attributes as well as continuing to drive cost effectiveness while meeting market and customer growth needs for high performance healthcare and hygiene applications in the Southeast Asian region.

Within its spunlace business, the company’s Evolve spunlace asset in The Netherlands offers several unique characteristics such as the company’s proprietary Apex technology, which provides best-in-class debossing on any fabric with the flexibility of design to create a range of attributes including visual, tactile and functional performance enhancements. Because the asset is centrally located in Europe, it offers reduced transport CO2 emissions compared to many competitors and has the capability to run a variety of natural fibers, including but not limited to, Lyocell, hemp and cotton.

A focus on sustainable solutions throughout all of its business areas continues to be a priority for Berry, which has a goal of achieving net-zero emissions across its global operations by 2050. The company will achieve this through the use of circular plastics, value-chain engagement and the use of cleaner energies.

“Over time, we’ve invested in an unrivalled range of nonwoven technologies for the wipes market. This gives us a truly comprehensive breadth of offering, giving wipes converters one source for all of their needs,” Harmon says. “Additionally, Berry continues to focus on more sustainable offerings to its customers including post-industrial recycled materials, which are being offered under the Endura brand name. Endura  spunbond and meltblown nonwovens are recognized under the SCS Recycled Content Certification, which measures the percentage of recycled content for the purpose of making an accurate claim in the marketplace, allowing customers the ability to include the SCS logo on-pack.

Berry introduced the closed-loop recycling ecosystem last year with manufacturing spanning six of its existing European locations. Through the ecosystem, Berry supplies customers with nonwoven materials, receives post-industrial waste from the conversion processes of its customers and lastly incorporates the recycled content into the Endura nonwovens line. Within the Endura line, Berry offers spunbond products containing up to 90% recycled content for use in applications such as disinfectant wipes, home and bedding, roofing and carpet tiles.

“Customers look to Berry for help in reaching their sustainability goals. Through our size and scale, we have the unique ability to invest and commercialize innovative, sustainable solutions to increase recycled content, reduce emission, and promote circularity,” says Achim Schalk, EVP/GM Health, Hygiene, and Specialties EMEIA for Berry Global.

“We recognize that there is no one solution for every need and have taken the approach of creating an array of solutions for our customers. We have offerings that include bio-sourced materials, advanced recycled materials, PCR, light weighting etc. In addition, we consider the entire supply chain in every product development,” Harmon adds. “We evaluate the carbon footprint of our raw materials, our plants, our equipment and transportation and work with our customers to minimize their impact. We work with our suppliers to source sustainable forms of energy, to drive reduction of their carbon footprint and to minimize waste. We certify our production facilities to manage traceability of materials and invest on our own green energy. We take the approach of doing what is best for our environment knowing that our customers will ultimately see that benefit.”

HHS Division Plants: U.S. and Canada: Augusta, KY; Benson, NC; Dalton, GA; McAlester, OK; Mooresville, NC; Nashville, TN; North Bay, Canada; Old Hickory, TN; Statesville, NC; Washington, GA; Waynesboro, VA
Latin America: Atlacamulco, Mexico; Cali, Colombia; Jundiaí, Brazil; Pilar, Argentina; Pouso Allegre, Brazil; San Luis Potosí, Mexico; São José dos Pinhais, Brazil
EMEIA: Aberdare, U.K.; Aschersleben, Germany; Bailleul, France; Berlin, Germany; Biesheim, France; Cujik, Netherlands; Dombühl, Germany; Maldon, U.K.; Mundra, India; Neuville-en-Ferrain, France; Tarragona, Spain; Terno d’Isola, Italy
Asia: Nanhai, China; Suzhou, China

Processes: Spunbond, meltblown, SMS, carded, composites, through air bonded, adhesive bonded, resin bonded, thermal bonded, spunlace, airlaid, aperture film, film laminates, sonic laminates, extruded laminates, thermal laminates, APEX, SPINLACE, MELTEX, REEMAY and other proprietary fabric forming, surfacing and binding systems, nonwoven and film printing, multi-layer blown film extrusion, and cast film extrusion.
Note: in addition to these specific roll-good technologies, Berry Global also offers one of the world’s leading rigid and flexible packaging portfolios for both consumer and industrial applications.

With manufacturing centers across the globe, Berry Global continues to invest in its Health, Hygiene, and Specialties business to build on and maintain its world-class, low-cost manufacturing base with an emphasis on key growth markets and regions where it continues to see incremental opportunities to invest organically in support of its unwavering commitment to global growth.

The company has added capacity for wipes substrates in North America and Europe as well as a new spunmelt nonwovens line for hygiene and medical applications in China as it continues to integrate an ambitious meltblown nonwovens expansion plan first initiated in 2020.

“The continued positive momentum from our investments, supported by our robust and growing pipeline, along with our industry leading commitment to sustainable packaging solutions, are all key factors contributing to our ongoing growth,” says Robert Weilminster, executive vice president and general manager for U.S. & Canada Hygiene.

In 2021, volume sales in its Health, Hygiene, and Specialties segment grew about 5% thanks to increased selling prices due to the pass-through of inflation, a $42 million increase from extra shipping days in fiscal 2021, and a $41 million favorable impact from foreign currency changes, partially offset by prior year divestiture sales of $34 million.

Sales will continue to increase moving forward, in part due to the company’s ambitious expansion efforts, which include the installation of a Reicofil 5 spunmelt line in Nanhai, China. Berry announced the new line in late 2020—not long after completing work on its first Reicofil 5 line at the site—and is on track to complete it later this year. It will meet forecasted market and customer growth and will be focused on high performance applications in healthcare markets in the Southeast Asia region.

“China is a growth market for Berry across the Health, Hygiene and Filtration segments as evidenced by our continued investment in the region,” Weilminster says. “China and broader Asia are experiencing all of the same economic challenges as the rest of the world, but the size and growth rate of our target markets continues to be very attractive to Berry.”

Meanwhile, in North Carolina, Berry added its latest Spinlace line in Mooresville, which was completed in January 2020. The line expands the company’s proprietary APEX imaging capability with current polypropylene based materials with the ability to be retrofitted to accommodate sustainable materials.

In addition to its Spinlace capabilities, in North Carolina, Berry’s global wipes business will benefit from the addition of a new spunlace line in Cuijk, The Netherlands, increasing the company’s capacity in the region. Berry’s Evolve spunlace line, which will be made on the new line, will become commercially available in November 2022.

“Our team in Europe, working closely with our equipment suppliers, has done an amazing job during challenging times to commercialize this asset on time,” Weilminster adds. “We are excited to see the launch of Berry’s latest spunlace offerings incorporating our proprietary technology in the marketplace in wipes, hygiene and other specialty applications.”

Output from these investments will primarily target the wipes market, which has seen tremendous growth across multiple categories in recent years. While Berry has seen some variability in the disinfecting wipes market in various regions, the fundamentals in the market remain sound.

“In the consumer market, we are seeing higher penetration rates with wipes being found in more homes,” Weilminster says. “We are also seeing disinfecting wipes used more frequently outside of the kitchen, which of course, provides greater room for growth. During the pandemic, we saw an increased use of wipes outside of the home, and, while this usage has retracted somewhat, it did expose more consumers to disinfecting wipes, which will continue to drive growth for differentiated applications.”

Another market in transition mode is meltblown nonwovens. In 2020, as the Covid-19 pandemic started its global threat, Berry, which had already begun expanding its meltblown output and had a new asset under construction in Asia, stepped up these efforts installing new lines in virtually every major region of the world.

“We installed multiple meltblown assets across the world and converted some pilot and/or underutilized assets to support market demand,” says Weilminster. “While we have seen the meltblown demand for face masks return to pre-Covid normalized levels, we continue to supply this fabric into healthcare, air filtration, and multiple other markets.”

As its business continues to grow, so does its efforts to decrease the environmental impact of both its own operation and its customers’. Realizing there is no single solution to the sustainability challenges the planet faces and that it would require multiple approaches, Berry’s Impact 2025 commitment was developed a few years ago and focuses on three key pillars—product, performance and partners.

“As such, we strive as an industry leader to offer and implement solutions for practically every potential sustainability challenge,” Weilminster says. “Our commitments to pre-buying advanced recycle, ISCC+ certification in plants all over the world, our range of sustainable product options across all manufacturing platforms and markets served, and our commitment to energy consumption reduction, along with green energy usage, proves Berry’s dedication to being a part of the long-term solution.”

Earlier this year, Berry announced it had committed to reducing its absolute scope greenhouse gas emissions by 25% by 2025—surpassing its initial goal of an 8% reduction. This target is aligned with Berry’s existing Scope 1 and 2 commitments and validated by the Science Based Targets initiative (SBTi). SBTi approval confirms Berry’s ambitious value chain goal is in line with current best practice and consistent with actions required to help limit warming to 1.5°C and prevent the most damaging effects of climate change.

HHS Division Plants: U.S. and Canada: Augusta, KY; Benson, NC; Dalton, GA; McAlester, OK; Mooresville, NC; Nashville, TN; North Bay, Canada; Old Hickory, TN; Pewaukee, WI; Schaumburg, IL; Statesville, NC; Washington, GA; Waynesboro, VA
Latin America: Atlacamulco, Mexico; Cali, Colombia; Jundiaí, Brazil; Pilar, Argentina; Pouso Allegre, Brazil; San Luis Potosí, Mexico; São José dos Pinhais, Brazil
EMEIA: Aberdare, U.K.; Aschersleben, Germany; Bailleul, France; Berlin, Germany; Biesheim, France; Cujik, Netherlands; Dombühl, Germany; Maldon, U.K.; Mundra, India; Neuville-en-Ferrain, France; Tarragona, Spain; Terno d’Isola, Italy
Asia: Nanhai, China; Suzhou, China

Processes: Spunbond, meltblown, SMS, carded, composites, through air bonded, adhesive bonded, resin bonded, thermal bonded, spunlace, airlaid, aperture film, film laminates, sonic laminates, extruded laminates, thermal laminates, APEX, SPINLACE, MELTEX, REEMAY and other proprietary fabric forming, surfacing and binding systems, nonwoven and film printing, multi-layer blown film extrusion, and cast film extrusion. Note: in addition to these specific roll-good technologies, Berry Global also offers one of the world’s leading rigid and flexible packaging portfolios for both consumer and industrial applications.

Sales of Berry Global’s Health, Hygiene and Specialty business were reported at $2.4 billion in 2020, driven higher by strong demand in healthcare and consumer goods products. “Our products proved indispensable as critical materials in the production of surgical gowns, face masks, hard surface disinfecting wipes, filtration media and hygiene products,” says Mark Siebert, EVP & general manager, US & Canada, Healthcare & Specialties.

At the start of 2020, as the world’s largest producer of nonwoven fabrics, Berry was well positioned with new capacity additions in China and the U.S., which had preceded the start of the pandemic. These assets were deployed immediately to support fabric requirements in healthcare personal protective equipment, surface disinfection and air filtration markets to help combat Covid-19. Additionally, Berry shifted the focus of a number of its assets throughout the world to support healthcare and hygiene demand and rapidly deployed capital to retrofit, update and invest in new lines to support demand for meltblown fabrics for use in facemask/respirator media which were running within months after the start of the pandemic.

Within meltblown, Berry quickly and aggressively expanded its global footprint in response to demand for face mask material and had new assets up and running just months after the global pandemic was declared. The company now has meltblown production—capable of supplying the N95 face mask market—in virtually every world market. Additionally, Berry now has nine meltblown lines operating globally and is able to supply this material locally in all four world regions.

In addition to nonwovens investment, Berry has forward integrated into mask production through the installation of nine mask machines including one in China, one in Europe, five in the U.S. and two in the Latin American region. The combined capacity is capable of making more than 20 million masks per month.

Along with these investments, Berry has extended its Synergex range of products, developing Synergex ONE, a new media design for face mask applications. Engineered to initially meet the new face mask categories for general population, the aim is to quickly bring the media up to EN 14683:2019 standards for surgical masks. The newly introduced Synergex ONE provides a multilayer nonwoven composite product in a single sheet, as an alternative to traditional face mask layer structures.

“We purchased a number of dedicated meltblown assets to support our strategic customers in many cases with government support as suppliers localized facemask production,” says Siebert. “All were supported with long term agreements. We also elected to invest in dedicated facemask production primarily to support our team members as essential workers in the production of these critical materials.”

Berry will continue to operate its dedicated meltblown assets to fulfill long-term supply obligations to healthcare equipment producers but expects that some of this capacity will eventually transition to support air filtration demand. The internal face mask production will likely be idled once Berry no longer has internal requirements dependent on local and national regulations and operating guidelines.

Meanwhile, in other investment news, the company has new lines in Nanhai, China, and North Carolina, which continue to operate at full nameplate capacity. The Nanhai asset—which is a Reicofil 5 spunbond line—was constructed to serve the super-premium hygiene market with first-to-market hi-loft bico nonwovens; while the North Carolina asset was built for the purpose of supporting hard surface disinfecting wipes. Both assets continue to serve these high growth markets and the company has recently announced further expansion in nonwovens in both Nanhai and North Carolina to meet the sustained growth post-Covid.

In Nanhai, Berry’s new Nanhai Reicofil 5 asset will produce high-performing SMS medical fabrics to support premium healthcare products in the region and around the globe and will provide incremental capacity to serve the fast growing Asia healthcare markets. The investment is targeted to meet forecasted market and customer growth and will be focused on high performance applications in the desired healthcare markets. The nonwovens investment supports Berry’s strategy to further its leadership position in healthcare, primarily through the production of surgical drape and gown material.

Berry’s Nanhai facility is strategically positioned to serve customers in the rapidly growing Southeast Asia region. Current projections are for startup in the third quarter of 2022.
Berry will be the first company in the world to operate two state-of-the-art R5 assets in China.

Meanwhile, Berry’s latest Spinlace line is being installed in North Carolina, where it completed work on a third Spinlace line in January 2020. The new investment will expand the company’s proprietary APEX imaging capability with current polypropylene based material with the ability to be retrofitted to accommodate sustainable future materials. This line is also expected to begin operating sometime next year.

“Berry has been an industry leader in the supply of hard surface disinfecting fabric with our patented Spinlace fabric and our Chicopee branded towels for food service and industrial cleaning for decades,” Siebert says. “Our scale and performance have served industry leading brands in hard surface disinfecting and continue to provide the best balance of value and performance in this high growth market. Our Chicopee branded towels have and continue to be the preferred choice for sanitization with traditional synthetic as well as full compostable options.”

In addition to a new Spinlace line, in North Carolina, Berry’s wipes business will benefit from the addition of a new spunlace line in Europe, increasing the company’s capacity there by more than 300 million square meters. This line, which was announced in March, is expected to be commercially available in September 2022.

The global wipes market is expected to grow 5-7% from an already elevated base, making it clear that new investments are needed.

“Both the Spinlace and spunlace investments were supported with long term supply commitments from industry leading brands in both the U.S. and Europe,” says Siebert. ”The demand in consumer, travel, and hospitality disinfecting has shifted post-Covid driven by the need for convenient, individual sanitization of hard surfaces.”

Both investments will also increase Berry’s natural offerings to the global wipes market. The European line will be able to make sustainable wipes by incorporating biodegradable or recycled materials immediately while the new U.S. line will be upgraded to support sustainable materials after completion. Both lines should be able to make sustainable substrates specifically targeting the surface disinfectant wipes category as early as 2023.

As one of the world’s largest plastics converters, Berry recognizes the valuable role plastics play in consumers’ daily lives in support of healthier living. “Plastics have been and will continue to be the lowest energy material option. However, we also recognize we must conserve the resources needed to produce these unique materials and minimize the waste generated through their life cycle,” Siebert says.

With that in mind, Berry has committed to a global reduction of energy, water and waste with aggressive targets that the company expects to exceed by 2025. As a founding member of the Alliance to End Plastic Waste, Berry is committed to the development of sustainable waste management to capture and recycle single use disposable plastics. The company recognizes these challenges must be addressed today through collective and collaborative engagement.

From a product standpoint, this focus on sustainability has resulted in products that can help Berry’s customers reduce their carbon footprint through reduced product weights across a number of applications. These include the Sof-flex ultra-breathable hygiene backsheet film enabling light-weighting and the first and only externally certified compostable J-Cloth bio wipe for surface sanitization.

HHS Division Plants: U.S. and Canada: Augusta, KY; Benson, NC; Dalton, GA; McAlester, OK; Mooresville, NC; Nashville, TN; North Bay, Canada; Old Hickory, TN; Pewaukee, WI; Schaumberg, IL; Statesville, NC; Washington, GA; Waynesboro, VA
Latin America: Atlacamulco, Mexico; Cali, Colombia; Jundiaí, Brazil; Pilar, Argentina; Pouso Allegre, Brazil; San Luis Potosí, Mexico; São José dos Pinhais, Brazil
EMEIA: Aberdare, U.K.; Aschersleben, Germany; Bailleul, France; Berlin, Germany; Biesheim, France; Cujik, Netherlands; Dombühl, Germany; Maldon, U.K.; Mundra, India; Neuville-en-Ferrain, France; Tarragona, Spain; Terno d’Isola, Italy
Asia: Nanhai, China; Suzhou, China
Processes: Spunbond, meltblown, SMS, carded, composites, through air bonded, adhesive bonded, resin bonded, thermal bonded, spunlace, airlaid, aperture film, film laminates, sonic laminates, extruded laminates, thermal laminates, APEX, SPINLACE, MELTEX, REEMAY and other proprietary fabric forming, surfacing and binding systems, nonwoven and film printing, multi-layer blown film extrusion, and cast film extrusion. Note: in addition to these specific roll-good technologies, Berry Global also offers one of the world’s leading rigid and flexible packaging portfolios for both consumer and industrial applications.

Working to respond quickly to the challenges brought on by the Coronavirus pandemic, Berry Global has been aggressively investing in new capacity during the past several months. The world’s largest nonwovens producer has announced new meltblown lines—capable of supplying the N95 face mask market—in virtually every world market, along with converting existing pilot facilities to make commercial output. This brings the number of total meltblown lines operated by Berry, once these investments are complete, to nine and provides the company with the ability to supply locally in all four world regions.

The Latin American asset, announced in May, is Berry’s first meltblown asset in the region. It is based on its Meltex technology, which uses a proprietary process creating a durable charge on the fabric. This significantly increases filtration efficiency and comfort making it ideal for N95/FFP2/FFP3 respirators and high performance NIOSH-rated surgical/medical procedure masks. Right before the virus outbreak, Berry had completed work on a meltblown line to serve the Asian market, initally with a focus on room air purification, face mask and cabin air filtration markets. As this line came onstream in the first quarter of 2020, Berry immediately recognized the need for additional meltblown capacity and soon announced line investments throughout Europe, Latin America, the U.S. and the U.K.

Berry’s line investment in the U.K. is the result of a collaboration with The Medicom Group, (Medicom), to design a manufacturing solution and guarantee the supply of nonwoven fabrics intended for use in the production of hundreds of millions of face masks annually as part of an agreement with the British Government. Medicom is one of the world’s leading manufacturers of medical and respiratory masks.

The British Government has enabled these investments through a long-term contractual commitment. The agreement confirmed support for Medicom’s new U.K.-based production facility, which is scheduled to open later this summer. This move highlights the focus governments are placing on securing a supply chain that helps ensure a local supply of personal protective equipment.

This announcement is just one of several partnerships to expand capacity of protective materials and add certainty to crucial PPE supply chains. In fact, executives say that customer commitment for the current and new capacity extends beyond 2021.

In addition to nonwovens investment, Berry is forward integrating into mask production and has purchased and installed nine mask machines including one in China, one in Europe, five in the U.S. and two in the Latin American region. The combined capacity is capable of making more than 20 million masks per month.

Along with these investments, Berry has extended its Synergex range of products, developing Synergex ONE, new media design for face mask applications. Engineered to initially meet the new face mask categories for general population, the aim is to quickly bring the media up to EN 14683:2019 standards for surgical masks. The newly introduced Synergex ONE provides a multilayer nonwoven composite product in a single sheet, as an alternative to traditional face mask layer structures.

Outside of meltblown, Berry has seen several previously announced investments come onstream in recent months. Its new SS bicomponent Reicofil 5 asset in China is fully operational and running at full capacity. The new line, which was announced in 2017, added 20,000 tons of spunmelt nonwovens to the company’s global capacity and has been engineered specifically to make specialty, soft products for hygiene products. Earlier in 2020, Berry deployed much of the capacity on the new line to make PPE materials in response to the coronavirus but more recently the line is transitioning to make high loft and silky soft materials for which it was originally designed. These materials are primarily targeted at the hygiene market, where differentiated, high performance and cost effective materials are needed.

In other investment news, in May, Berry announced it was expanding spunmelt capacity in Statesville, NC. The Statesville facility will install $8 million of new equipment and enhance existing production lines. The spunbond and spunmelt products made in Statesville will include Berry’s proprietary technology developments, which provide improved visual, tactile, and comfort attributes. Adding to the company’s expansive global footprint, the Statesville expansion further supports localized converting for healthcare products in North America. The additional equipment and expanded capacity are expected to be operational in December 2021.

“Berry responded rapidly and globally by redeploying existing assets to produce healthcare volume in support of customers managing an unprecedented increase in demand,” Curt Begle, president, Health, Hygiene, and Specialties Division, says. “This was further augmented by the planned startup of a new R5 asset in Nanhai, China, the new Spinlace asset in Mooresville, NC, and commercializing two meltblown pilot line assets in Waynesboro, VA, and Old Hickory, TN.”

Outside of spunbond and metlbown, Berry’s third and newest Spinlace line, featuring proprietary technology for the surface disinfecting wipes market, started up on schedule in late 2019, just in time to support the surge in demand driven by Covid-19, Begle reports. “Although the line was fully committed before start-up, the surge in demand and long-term outlook for this material will warrant further investment in this proprietary technology in the U.S. and other regions around the world,” he says.

Plants: North America: Benson, NC; Dalton, GA; McAlester, OK; Mooresville, NC; Naucalpan, Mexico; North Bay, Canada; Old Hickory, TN; Pewarukee, WI; San Lui Potosi, Mexico; Schaumberg, IL; Statesville, NC; Tlalnepantla, Mexico; Washington, GA; Waynesboro, VA. South America: Cali, Colombia; Pilar, Argentina; Pouso Alegre, Brazil; Sao Jose dos Pinhais, Brazil. EMEIA: Aberdare, U.K.; Bailleul, France; Bengaluru, India; Berlin, Germany; Biesheim, France; Cujik, Netherlands; Maldon, U.K.; Mundra, India; Neuville-en-Ferrain, France; Offranville, France; Sandskanaal, Netherlands; Tarragona, Spain; Terno d’Isola, Italy. Asia: Dongguan, Jiangmen, Nanhai, Quingdao, Suzhou, Zhijang, China; Joor, Malaysia
Processes: Spunbond, meltblown, SMS, carded, composites, through air bonded, adhesive bonded, resin bonded, thermal bonded, spunlace, airlaid, aperture film, film laminates, sonic laminates, extruded laminates, thermal laminates, Apex, Spinlace and other proprietary fabric forming, surfacing and binding systems, nonwoven and film printing, multi-layer blown film extrusion, cast film extrusion and injection molding

Berry Global, the world’s largest nonwovens producer, started off 2018 with the purchase of Clopay Plastic Products, a maker of breathable and nonbreathable films and laminates for $475 million. With annual sales of $461 million, Clopay operated facilities in Kentucky, Tennessee, Germany, Brazil and China, and had about 1500 employees prior to being acquired by Berry. It shared many of the same customers as Berry in the hygiene segment. Its largest customer, Procter & Gamble, represented about half of sales last year. The acquisition has allowed Berry and Clopay to optimize complementary production capacities, reduce material and conversion costs and better serve customers from an expanded global footprint. The acquisition also gives Berry access to patent protected technologies in the breathable films segment, which will improve its position in this fast growing market.

In 2017, Clopay announced it would invest $50 million to expand its breathable film capacity in North America, Europe and Brazil. This investment centers around the company’s Sof-Flex line of low basis weight breathable films which meets the demand for softer lighter weight breathable films and laminates globally.

Berry’s heritage films business and the acquired nonwovens business contained a number of synergies and shared customers and were soonafter combined to form the company’s Health and Hygiene Specialties (HHS) division. The Clopay business is now a part of this segment.

In other acquisition news, Berry completed the purchase of RPC Group, a large manufacturer of plastic packaging components, for $6.5 billion in July. The two companies now have a combined global footprint consisting of over 290 locations worldwide, including locations in North and South America, Europe, Asia, Africa and Australia. Joining the two companies creates a leading global supplier of value-added protective solutions and one of the world’s largest plastic packaging companies.

Berry also announced a new business structure linked to its acquisition of RPC. Berry’s business structure will now be comprised of four divisions: Consumer Packaging – International; Consumer Packaging – North America; Engineered Materials; and Health, Hygiene, and Specialties. The company’s previous structure included three divisions: Consumer Packaging, Engineered Materials, and Health, Hygiene, and Specialties.
Back to Berry’s nonwovens business, the company has invested in several new lines in recent months. Most recently, Berry announced in November 2018 it would add a specialty meltblown line to produce high efficiency filtration media for the Asian markets. The investment is a part of the company’s Health, Hygiene and Specialties Division and is focused on premium applications in the room air purification, industrial face mask and cabin air filtration markets.

“The filtration market is growing rapidly and we are excited to expand our capacity to accommodate the growing markets and increased demand. Our commitment is strong to this market and the entire nonwovens space. Our investment in meltblown capacity is the next step in advancing our market leading position in filtration solutions,” says Scott Tracey, president of Berry’s Health, Hygiene, and Specialties Division.
Also in China, Berry is adding its latest spunmelt investment, a 20,000-ton Reicofil 5 spunmelt line located in Nanhai, China. Announced in 2017, the new line is nearing completion and will target the Asia-Pacific markets with specialty, soft products for hygiene applications. The line should reach commercialization in the fourth quarter.

Robert Weilminster, president of North America, says: “The new Reicofil technology will allow us to better meet our customer demands with a comprehensive product range.”

The Nanhai site was built in 2014 to replace an older site originally built there in 1996. Other enhancements to Berry’s hygiene business include new carding technology at its site in  Terno d’Isola, Italy, which allows for higher loft products. This was part of a significant European investment that also included additional spunmelt capacity and brought the European capacity to above 100,000 tons. The Terno d’Isola site is now a Center of Excellence for carded nonwovens, featuring an enhanced production process and innovation capabilities that have allowed it to respond to changing market demands.

As one of the world’s largest manufacturers of spunmelt nonwovens, as well as a sizable producer of a variety of breathable and non-breathable films, Berry is able to offer is customers significant variety in the hygiene market. “Our team is talking about nonwovens and films in the same conversations with customers and this allows our customers to have many choices in breathability for health and hygiene applications,” Weilminster says.

Outside of the spunmelt segment,  Berry has recently completed work on its latest Spinlace line in Mooresville, NC. The technology featured an advanced proprietary process to hydroentangle limitless materials. The new line is adding 17,000 tons of capacity to the company’s capacity and will largely serve North American demand for healthcare, hygiene, household cleaning, food service and industrial wipes. It is Berry’s third line featuring the technology, which was introduced in 2007 and expanded in 2014.

The combination of Spinlace with Berry’s proprietary Apex technology allows Berry to create customizable three-dimensional images directly on the fabric, providing enhanced product performance, recognition or aesthetic appearance with brand differentiation. The new line has allowed Berry to create a full range of surface wipes.

Outside of wipes and hygiene, Berry operates a sizable specialty business globally with key markets including agriculture, specialty filtration, building and construction and geotextiles. In November, the company showed an increased focus on its agriculture business when it designated its facility in Beisheim, France, as a European Center of Excellence in agriculture.

As a major consumer of plastics feedstock, Berry has shown its commitment to making sustainability a major part of its business. In July, the company signed the New Plastics Economy Global Commitment to eliminate plastic pollution at its source. The New Plastics Economy Global Commitment is led by the Ellen MacArthur Foundation, in collaboration with UN Environment.

“At Berry, we stand behind the power of plastics and are placing a priority on creating a more sustainable future. We are innovating our products to encourage recyclability, use of recycled content, and lightweighting. In conjunction with the Ellen MacArthur Foundation, we are proud to accelerate the transition towards a circular economy,” says Tom Salmon, Berry chairman and CEO.

By signing the Global Commitment, Berry has pledged to: take action to eliminate problematic or unnecessary plastic packaging. Berry will continue to develop widely recyclable packaging to replace less recyclable alternatives. In the near term, the company commits to develop a widely recyclable alternative for each of its polystyrene product lines by the end of 2020.

Plants: North America: Benson, NC; Dalton, GA; McAlester, OK; Mooresville, NC; Naucalpan, Mexico; North Bay, Canada; Old Hickory, TN; Pewarukee, WI; San Lui Potosi, Mexico; Schaumberg, IL; Statesville, NC; Tlalnepantla, Mexico; Washington, GA; Waynesboro, VA. South America: Cali, Colombia; Pilar, Argentina; Pouso Alegre, Brazil; Sao Jose dos Pinhais, Brazil. EMEIA: Aberdare, U.K.; Bailleul, France; Bengaluru, India; Berlin, Germany; Biesheim, France; Cujik, Netherlands; Maldon, U.K.; Mundra, India; Neuville-en-Ferrain, France; Offranville, France; Sandskanaal, Netherlands; Tarragona, Spain; Terno d’Isola, Italy. Asia:
Processes: Spunbond, meltblown, SMS, carded, composites, through air bonded, adhesive bonded, resin bonded, thermal bonded, spunlace, airlaid, aperture film, film laminates, sonic laminates, extruded laminates, thermal laminates, Apex, Spinlace and other proprietary fabric forming, surfacing and binding systems, nonwoven and film printing, multi-layer blown film extrusion, cast film extrusion and injection molding

With a new acquisition in the films segment under its belt, Berry Global continues to focus not just on being the world’s largest manufacturer of nonwovens—a title it has held since 2016—but also the most comprehensive supplier to the hygiene market in the world.

In November 2017, Berry announced it would acquire Clopay Plastic  Products, a technology leader in the breathable films segment for $475 million in cash.

“Nonwovens and films are both components of hygiene items and Clopay is a logical acquisition as we look to bring end-to-end solutions to our customers,” says executive vice president of global communications and marketing David Park. “Clopay’s Sof-Flex ultra lightweight films can perform well on high-speed hygiene assets. If we combine this technology with our nonwovens technology, we can offer complete solutions for baby diapers.”

With annual sales of $461 million, Clopay operated facilities in Kentucky, Tennessee, Germany, Brazil and China, and shares many customers with Berry in the hygiene segment. Its largest customer—Procter & Gamble—represented about half of its sales last year. In 2016, the company spent $50 million to expand its breathable film capacity in North America, Europe and Brazil, responding to demand for Sof-Flex.

The integration of Clopay’s technology into Berry’s product portfolio, which already contained film products for hygiene applications, has allowed the company to reach customer needs for softness, strength and loft globally. Clopay’s backsheet films can be combined with nonwovens or offered as a laminate and the company’s technology also brings elastic film  technology into the Berry portfolio. Particularly in feminine hygiene, the combination of films and nonwovens offer  complete and discreet product solutions.

Berry is no stranger to acquisition. The company entered the nonwovens industry by acquiring the world’s largest producer, Avintiv, in 2014. Prior to the acquisition, Avintiv had also used acquisition as a key growth strategy, purchasing spunmelt assets in Brazil and Europe as well as more technical-oriented operations in the U.S. and Europe.

Acquisition is not the only growth vehicle for Berry. The company continues to invest across its many nonwovens technology platforms and is currently adding a spunmelt line in Nanhai, China, and a Spinlace wipes substrate line in Mooresville, NC.

In 2018, Berry confirmed that its latest spunmelt investment, a 20,000-ton Reicofil 5 spunmelt line, which was announced in mid 2017, would be located at Nanhai, China. The new line will target the Asia-Pacific markets with specialty, soft products for hygiene applications. The R5 technology was selected because of its cost effectiveness and its ability to complement Berry’s existing soft applications.

“The Asia-Pacific market sets the bar very high for softness,” says vice president of Berry’s Asia-Pacific operations Johnny Wang. “Our technology, combined with the latest Reifenhauser technology, can bring a full range of softness—whether it’s the silky softness preferred in Japan or the high loft softness popular in China. We can offer a complete range of softness. We are not just meeting one region’s definition of softness.”

The Nanhai site was built in 2014 to replace an older site originally built there in 1996.

Other recent Chinese investments include the addition of meltblown capabilities to an existing line in Suzhou, China. Both investments expanded Berry’s role in the hygiene, medical and healthcare markets.

Suzhou is not Berry’s first investment in soft technology. In 2015, the company invested in carding technology in Terno d’Isola, Italy, and increased its spunmelt nonwovens capacity, allowing for higher loft products, as part of a significant European investment that brought capacity in the region to above 100,000 metric tons. In fact, the company’s Terno d’Isola, Italy, site is now a Center of Excellence for carded nonwovens, featuring an enhanced production process and innovation capabilities that have allowed it to respond to changing market demands. The new and upgraded lines in Terno d’Isola can produce all basis weights for air-through bonded carded nonwovens with both mono and multi-layers.

Also included in the upgrade is a new automatic high speed spooling machine with 10 winding heads to satisfy any customer need in processing.

Meanwhile, Berry’s new Spinlace production line in Mooresville, NC, will feature its advanced proprietary process to hydroentangle limitless materials, and will provide an incremental 17,000 metric tons of annual capacity serving the North American markets. This investment will meet market and customer growth in healthcare, hygiene, household cleaning, foodservice and industrial wipes markets and is Berry’s third line featuring the technology. Berry introduced the technology in 2007 and added a second line in 2014.
“Unique in the market, this technology provides strength, bulk, a high degree of design flexibility, as well as three-dimensional imaging capabilities for texture and branding,” says Scott Tracey, president of Berry’s Health, Hygiene, and Specialties Division.

“By combining Spinlace with Berry’s proprietary Apex technology we can impart customizable three-dimensional images directly into the fabric, providing enhanced product performance, recognition and/or aesthetic appeal with brand differentiation.”

The new line will allow Berry to make wipes for a full range of surface wipes. It is expected to be complete in mid-2019.

Outside of wipes and hygiene, Berry operates a sizable specialty business globally with key markets including agriculture, specialty filtration, building and construction and geotextiles. In November, the company showed an increased focus on its agriculture business when it designated its facility in Beisheim, France as a European Center of Excellence in agriculture.

To achieve this designation, Biesheim’s technical capacities were upgraded with the addition of a welding line and improvements designed to increase its capacity for wide-width materials. Additionally, further improvements will be made to allow the Beisheim site to continually advance its processes and the service and product quality it provides to its customers.

According to the company, the division will establish the Centers of Excellence for strategic markets and core technologies around the world demonstrating its focus on providing the highest quality products and services to its customers.

“The reality is we go where our customers need us to go,” Parks says. “We are well placed around the world but we are always asking how do we further penetrate markets.”

Plants: North America: Benson NC; Dalton GA; McAlester, OK; Mooresville NC; Naucalpan, Mexico; North Bay, Canada; Old Hickory, TN; Pewaukee, WI; San Luis Potosi, Mexico; Schaumberg, IL, Statesville, NC; Tlalnepantla, Mexico; Washington GA; Waynesboro, VA
South America: Cali, Colombia; Pilar, Argentina; Pouso Alegre, Brazil; Sao Jose dos Pinhais, Brazil
EMEIA: Aberdare, UK; Bailleul, France; Bengaluru, India; Berlin, Germany; Biesheim, France; Cuijk, Netherlands; Maldon, UK; Mundra, India; Neuville-en-Ferrain, France; Offranville, France; Sandskanaal, Netherlands; Tarragona, Spain; Terno d’Isola, Italy
Asia: Dongguan, Jiangmen, Nanhai, Quingdao, Suzhou, Zhijang, China; Johor, Malaysia
Processes: Spunbond, meltblown, SMS, carded, composites, through air bonded, adhesive bonded, resin bonded, thermal bonded, spunlace, airlaid, apertured film, film laminates, sonic laminates, extruded laminates, thermal laminates, Apex, Spinlace, and other proprietary fabric forming, surfacing and binding systems, nonwoven and film printing, multi-layer blown film extrusion, cast film extrusion, and injection molding

The big news from the world’s largest nonwovens producer is the company’s name change, announced in April 2017, from Berry Plastics Group, Inc. to Berry Global Group, Inc. The new name, according to the company, better portrays a more balanced view of who the company is to customers and investors.

“Our business has transformed significantly since our name became Berry Plastics in 1983,” says Tom Salmon, Berry’s CEO. “Berry has evolved from one manufacturing facility in Evansville, IN, to over 130 facilities throughout the world. And our business has grown from less than $25 million in annual revenue in 1983 to now over $7 billion, reflecting the AEP acquisition.”

In January 2017, Berry acquired AEP Industries Inc., a leading manufacturer of flexible packaging films in North America. Based in Montvale, NJ, AEP operates 14 manufacturing sites in the U.S. and Canada.

“Two critical components of Berry’s culture are Continuous Improvement and Innovation,” Salmon adds. “As such, we are ‘Always Advancing’ to improve the way we work and to improve the products and services we provide. If you look across all of our products, they have one element in common – they protect. They protect what people eat, drink and use every day … they protect healthcare professionals and their patients … and they protect buildings, transportation, pipelines, and other infrastructure.”

With the name change and new mission, the company has also adopted a new logo and values. The logo was developed with the company’s values—partnerships, excellence, growth and safety—in mind.

Another milestone was achieved in June 2017 when Berry earned a spot on the Fortune 500, Fortune Magazine’s ranking of America’s largest companies. Berry is ranked at number 413, with $6.5 billion in revenues in fiscal 2016. The company also became the sixth largest company headquartered in Indiana in Fortune Magazine’s ranking.

Berry was first put into position to enter the Fortune 500 when it acquired its nonwovens division, adding $2 billion in sales, in July 2015. This portion of the company merged with Berry’s existing personal care-related businesses to form the Health, Hygiene and Specialties division.

In July 2017, Berry proved its commitment to growing this business by announcing plans to invest in a state-of-the-art Reicofil RF5 line, which will provide an incremental 20,000 metric tons of capacity serving the Asia markets. This investment will target market and customer growth and will be focused on premium applications in the desired hygiene and healthcare markets.

“Asia, for Berry, has been one of the fastest growing regions,” says Scott Tracey, president, Health, Hygiene and Specialties Division. “We are running at a relatively high utilization rate and it is time to invest to grow the business. This investment is targeted at premium hygiene and healthcare applications.”

The exact location of the new line has not been announced. Berry currently has nonwovens operations in Suzhou and Nanhai as well as a number of facilities serving its businesses outside of health and hygiene.

“Right now, we have announced the new investment,” Tracey adds. “The choice of location will be finalized soon.”

Berry’s most recent Chinese investment was the addition of further meltblown capabilities to an existing line in Suzhou, China, in 2017 as well as a brand new facility in Nanhai, which was built in 2014 to replace an older site originally built in 1996. Both of these efforts expanded Berry’s role in medical, health and hygiene applications.

In other investment news, Berry continues to focus on North America. The company announced in mid-2016 that it would add a new line in the region but has yet to pinpoint the exact location or technology for the new line.

“It is important to pick the technology as well as the location, aligned with market needs. We have a number of different locations to choose from, once we decide the final nonwovens technology for the investment,” Tracey says.

In Europe, Berry has continued to enhance its nonwovens offerings to meet changing market demands. In the past few months the company has put the final touches on a two-year investment to transform its Terno d’Isola (Italy) plant into a Center of Excellence for carded nonwovens. This transformation delivers enhanced production processes and innovation capabilities to respond to the changing market demands.  The new and upgraded manufacturing lines in Terno are designed for the production of all basis weights for air-through bonded carded nonwovens with both mono and multi-layers.  Also included in the upgrade are new automatic high-speed spooling machines featuring 10 winding heads to satisfy any customer need in processing.

As a result of these investments, Berry has broadened its product offerings. Recent introductions include: premium air through bonded nonwovens for topsheet and backsheet applications using premium fibers and finishes; Kamisoft Advanced, a soft bonded spunbond nonwoven for a number of hygiene product component applications and enhanced environmental focused offerings featuring cotton, PLA and other naturally derived materials.

Under Berry’s ownership, this nonwovens producer is well positioned to provide innovations that include not just nonwovens, but also film. While Tracey would not comment on what the combining of the nonwovens business with the films operations delivered specifically, he would say that the combination created increased customer exposure, not just from the nonwoven and film product standpoint, but also in terms of packaging components and logistical efforts.

“There have certainly been benefits,” he says. “Both the nonwoven and personal care film businesses have benefited from expanding existing customer relationships, and other synergies between the businesses.”

Outside of the health and hygiene segments, the HHS division of Berry operates a sizable specialty business globally. Key markets in these areas include filtration, proprietary wipes technologies, agriculture and building/construction. These markets continue to thrive under Berry’s ownership and are exposing the company to new market areas and applications globally.

Plants: U.S.—Benson, Mooresville and Statesville, NC; Clackamas, OR; Old Hickory, TN; Waynesboro, VA. Canada—North Bay, OT. Latin America—Buenos Aires, Argentina; Pouso Alegre and São José dos Pinhais, Brazil; Cali, Colombia; San Luis Potosi, Mexico. Europe—Bailleul, France; Aschersleben, Beisheim and Berlin, Germany; Terno d’Isola, Italy; Tarragona, Spain; Cuijk, The Netherlands; Aberdare, U.K.; Maldon, U.K.. Asia—Mundra, India; Nanhai and Suzhou, China
Processes: Spunbond, meltblown, SMS, composites, through air bonded, adhesive bonded, resin bonded, thermal bonded, spunlace, airlaid, apertured film, film laminates, sonic laminated, extruded polyolefins, thermal laminated, Apex, Spinlace and other proprietary fabric forming, surfacing and binding systems
Trademarked Technologies: Apex, Amira, Arium, Nuvibond, Reemay, Spinlace, S-Tex, Typar
Brands: Agribon, Agryl Novagryl, Air-Gard, Chicopee, Chifonet Wipeschix, Chux, Comfortsilk, Covertan Pro, Durawipe, Geca Tapes, Medisoft, Medisoft Ultra, Pentamax, Reicrop, Reticulon, Soft-Touch, Spinlace, Sur-Prep Wipes, Reemay, Typar, Terram, Topswell, Tubex

The world’s largest nonwovens producer continues to focus on investment as its key growth strategy even as it continues under new ownership. In late 2015, Berry Plastics, a manufacturer of films for personal care applications among other things, acquired Avintiv, the nonwovens manufacturer formerly known as Polymer Group Inc., for a $2.45 billion cash deal. Announced in July 2015, the acquisition closed in October 2015.

Prior the acquisition, Avintiv had been steadily increasing its sales through both acquisitions and capital investments during the past five years, which drove its sales above $2 billion, and increased its global footprint across the U.S., South America, Europe and China. While much of this investment centered around spunbond and spunmelt nonwovens for the hygiene market, Avintiv also has a range of nonwovens technologies for industrial markets including filtration, construction and geosynthetics as well as a proprietary technology for the wipes market.

By acquiring Avintiv, Berry Plastics increased its exposure to the world’s leading makers of diapers, feminine hygiene items and adult incontinence. Before the acquisition,  Berry and Avintiv shared several key customers—nine of Avintiv’s top 10 customers in these segments were also key Berry accounts. Avintiv supplies polypropylene-based nonwovens that act as coverstock and absorbent material in diapers and other hygiene items, while Berry sells backsheet materials, molded wrapping and fem care applicators to the same markets.

While it is not known yet if Berry is working on a hybrid film/nonwoven product that could help hygiene product makers streamline their production processes, many are speculating that such a product is a likely result of this acquisition. What is known, however, is that the merger of the two companies has significantly  increased Berry’s position as a purchaser of polypropylene resin; the two companies together buy about two billion pounds of the material annually—and more attractive resin pricing will help the company save about $50 million per year.

In addition to these synergies, Avintiv’s global presence was one of the reasons why Avintiv appealed to Berry—more than 90% of its pre-acquisition sales are in North America where its manufacturing is also heavily weighted. Meanwhile, Avintiv operates 23 sites in 14 countries. Just 44% of its sales were in North America while the remaining were split between South America, Europe, the Middle East and Africa and China.

Following the acquisition, Berry Health and Hygiene, the division that contains the Avintiv business as well as Berry’s existing personal care activities, reports that half of its sales are in North America while 23% are in Europe, the Middle East and Africa, 16% are in Latin America and 10% are in the Asia-Pacific region.

“One of the reasons Avintiv was so attractive to Berry was its market leadership globally in segments that are growing,” says Scott Tracey, president of the Health and Hygiene and Specialties division.
Tracey, an 11-year veteran of Avintiv, now leads the Health and Hygiene and Specialties division, which was created in November not long after the acquisition. It represents 35% of Berry Plastics’ sales.

With the reorganization, Avintiv CEO Joel Hackney announced he would leave the company to pursue other interests. Hackney had served at the helm of Avintiv since 2013 and led it through a series of acquisitions and investments that ultimately made it the world’s largest producer of nonwoven fabrics.

As it continues to integrate the two companies, Berry has already announced plans for expansion. In April, it said it would add a new  line in North America. While a firm location for the line has yet to be announced, executives say it will likely be at one of the company’s existing nonwovens operations in Mooresville, NC, Waynesboro, VA, Washougal, WA or San Luis Potosi, Mexico.

The line, which will add an incremental 16,000 metric tons of capacity to Avintiv’s North American capacity, will respond to the need for softer better fitting materials that is currently driving the hygiene market. It is expected to start up in 2018.

“We don’t make our decisions based on supply versus demand but we do not consider North America to be significantly over capacity,” Tracey says. “We look at strategic growth and the demands of our customers. They are the decision drivers.”

Prior to the acquisition, Avintiv’s last major North American capital investment project centered around its Spinlace technology for the wipes market. In the third quarter of 2014, a 300 million-square-meter expansion of this technology came onstream, allowing Avintiv to better serve its global customers and support the continuing growth of its global business.

Spinlace, a proprietary continuous filament nonwovens technology, was first introduced by Avintiv in the early 2000s, and it continues to grow across consumer and industrial wiping applications, according to executives.

Meanwhile at its site in San Luis Potosi, Mexico, where Berry operates several spunmelt lines, an investment to add state-of-the-art printing as well as inline slitting and packaging capabilities is allowing customers to take advantage of the company’s print expertise while simplifying and reducing risk in the supply chain. The expansion, which was complete in late 2015, brings the site’s print capacity to 600 million square meters.

Looking at the company’s industrial business, acquired from Fiberweb in 2010, the company has upgraded machinery in Waynesboro to develop two nanofiber technologies for the global filtration market. The result of this investment is the Everist brand filtration media, which the company bills as the next answer in high efficiency filtration offering enhanced mechanical efficiency, low pressure drop and excellent dirt holding capacity.

Tracey says that the Avintiv industrial business exposes Berry to a number of interesting growth markets including filtration, roofing and geosynthetics with many core brands like Reemay and Typar.
“Our innovation has been enhanced by combining the nonwovens and films businesses—not just in health and hygiene but across all of the business segments,” Tracey says. “This has allowed us to create attributes that are different from when you are just a component supplier.”

Back to the investment news, Berry is finishing up a €25 million European expansion project. The first phase of this investment was the conversion of a line in Tarragona, Spain, from SSXXS to SSMMS, which increased capacity by 50% of 15,000 tons. This investment was in direct response to the evolving market demand for spunmelt in personal care and hygiene products across Europe, the Middle East and Africa (EMEA), according to the company.

The second phase of this European investment was undertaken at the company’s facility in Terno D’Isola, Italy, where a brand new, state-of-the-art carded line has  increased the company’s capability to produce soft materials.

The investment underscores the importance the company places in increasing the performance of its personal care products through innovative spunmelt and carded technologies.

Berry has also added a meltblown line to an existing line in Suzhou, China, which was originally added in 2013, to better target medical applications. Elsewhere in Asia, Berry now has a brand new facility in Nanhai, China, which replaced an existing site built in 1996. Announced in 2014 and completed in 2015, this site has allowed the company to expand its manufacturing capacity for high quality nonwoven products for the global hygiene and healthcare markets.

Meanwhile in South America, the acquisition of Companhia Providencia in 2014 gave it a strong foothold in Brazil, which complements recent investments or upgrades in Argentina, Mexico and Colombia that the company has undergone in recent years.

Berry Plastics Group and AEP Industries have entered into a definitive merger agreement under which Berry will acquire all of the outstanding shares of AEP in a cash and stock transaction. Aggregate consideration will be $765 million, including AEP’s net debt.  AEP is a leading manufacturer of flexible plastic packaging films in North America. AEP manufactures and markets a diverse line of flexible plastic packaging products for consumer, industrial, and agricultural applications. Headquartered in Montvale, NJ, AEP operates 14 manufacturing facilities in the United States and Canada and has approximately 2600 employees. For the four quarters ended April 2016, AEP generated net sales of $1.1 billion, net income of $39 million, and adjusted EBITDA of $103 million.

AEP will be a part of Berry’s Engineered Materials Division, which creates an impressive packaging film producer serving the North American market.

Plants: Worldwide HQ: Charlotte, NC; U.S.—Benson, Mooresville and Statesville, NC; Clackamas, OR; Old Hickory, TN; Waynesboro, VA. Canada—North Bay, OT. Latin America—Buenos Aires, Argentina; Pouso Alegre and São José dos Pinhais, Brazil; Cali, Colombia; San Luis Potosi, Mexico. Europe—Bailleul, France; Aschersleben, Beisheim and Berlin, Germany; Terno d’Isola, Italy; Tarragona, Spain; Cuijk, The Netherlands; Aberdare, U.K.; Maldon, U.K.. Asia—Mundra, India; Nanhai and Suzhou, China
Processes: Spunbond, meltblown, SMS, composites, through air bonded, adhesive bonded, resin bonded, thermal bonded, spunlace, airlaid, apertured film, film laminates, sonic laminated, extruded polyolefins, thermal laminated, Apex, Spinlace and other proprietary fabric forming, surfacing and binding systems
Trademarked Technologies: Apex, Amira, Arium, Nuvibond, Reemay, Spinlace, S-Tex, Typar
Brands: Agribon, Agryl Novagryl, Air-Gard, Chicopee, Chifonet Wipeschix, Chux, Comfortsilk, Covertan Pro, Durawipe, Geca Tapes, Medisoft, Medisoft Ultra, Pentamax, Reicrop, Reticulon, Soft-Touch, Spinlace, Sur-Prep Wipes, Reemay, Typar, Terram, Topswell, Tubex

This will be the first and last time Avintiv, the company formerly known as Polymer Group Inc., holds the top spot in this ranking. The company became the largest nonwovens producer in 2014 after a series of acquisitions, including Fiberweb and Companhia Providencia, propelled its sales upward, but will be sold to plastic and films specialist Berry Plastics later this year.

The integration of Avintiv will make Berry Plastics the world’s largest nonwovens producer while also increasing its access to the global hygiene and healthcare markets and lessening its dependence on the food and beverage packaging segment, which comprised about 40% of sales prior to the deal.

In 2014, a reported 57% of Avintiv’s $2 billion 2014 sales were within the health and hygiene categories compared to 10% of Berry’s sales. Already, Berry and Avintiv share several key customers. In fact nine of Avintiv’s top 10 customers in these segments are also key Berry accounts. Avintiv supplies polypropylene-based nonwovens that act as coverstock and absorbent material in diapers and feminine hygiene items while Berry sells backsheet materials, molded wrapping and fem care applicators to the same markets.

Most of Berry’s sales and production are located within North American while Avintiv has operations on four continents and sells products around the world.

“Geographically it is also a big advantage for Berry because Avintiv has a much broader international focus, and we think their leadership in many emerging markets will help facilitate growth,” says Jon Rich, Berry chairman and CEO after his company announced plansto acquire Avintiv in August.

According to company data, 44% of Avintiv’s sales last year were in North America while 26% were in Europe, the Middle East and Africa; 20% were in South America and 10% were in Asia-Pacific. In recent years, Avintiv, which changed its name and corporate identity in June, has invested significantly in global markets.

Its most recent international investment was the 2015 acquisition of Dounor in France, which boosted its European business by adding about 40,000 tons and $100 million in sales to the region.

“Dounor has grown into one of the top providers in materials for adult care and other hygiene applications in the European region, making them an ideal addition to our business,” Avintiv CEO J. Joel Hackney said at the time of the acquisition. “This acquisition will enable us to better serve customers in the hygiene market, particularly in northern Europe, and we are excited about the new opportunities this will create for our growth.”

Elsewhere in Europe, Avintiv operates a sizable operation in Spain, which it acquired from Telsaca-Texnovo in 2009 and said it was adding to in 2014.

Meanwhile, in South America, the acquisition of Companhia Providencia last year gave it a strong foothold in Brazil, which complements recent investments or upgrades in Argentina, Mexico and Colombia. The integration of Providencia also provided Avintiv with state-of-the-art spunmelt assets in North America where the company now operates spunmelt lines in South Carolina,
North Carolina, Virginia and Mexico.

Prior to the Berry acquisition, it seemed Avintiv was destined to become a publicly traded company in its own right. Earlier this year, Avintiv said it had filed registration papers to launch an initial public offering of its shares. Hackney says the company had worked strongly in this direction until more recently when it became clear that being acquired was another option for its future.
“As Avintiv recreated itself as a leader in specialty materials, our team created such momentous growth that not just Berry but many customers recognized this,” he says. “Just like the businesses we created was attractive to potential investors through an IPO, it became attractive to a strong company like Berry.”

Berry also expects to capitalize on synergies with Avintiv beyond healthcare and hygiene. Within the wipes market, where Avintiv supplies substrate fabrics, Berry sells a number of plastic dispensing solutions; while in building and construction, Avintiv’s building wraps and geotextile products will complement Berry’s offerings, which include films and tapes.
The one area where the two companies compete is within the medical apparel segment where they both make gowns and masks. However, Avintiv’s role is significantly bigger than Berry’s.

“Avintiv has a diverse product offering in the medical and hygiene spaces,” Rich explains. “One of the things that we are most excited about is the opportunity to deliver solutions to our customers to help them reduce processing time and simplify things.”
For example, by merging the sourcing and production of absorbent materials and backsheets in baby diaper manufacturing or creating a marriage between substrate production and dispensing solutions in the disinfectant wipes market, the newly merged company will be offering product solutions to its customers.

As for Avintiv, Hackney is confident it will continue on a similar path under the umbrella of Berry Plastics. “Our strategy for Avintiv is straight forward and simple,” Hackney adds. “If you consider our strategy to become a leading specialty materials business creating a cleaner, safer and healthier world, our acquisitions have helped us accelerate this by not only expanding our scale but also by adding technologies to add specialized solutions.”

Among the recent technology additions at Avintiv is an expansion of Spinlace capacity in Benson, NC. The 300 million-square-meter addition of this material for the wipes markets came onstream in third quarter of 2014 and has allowed Avintiv to better serve its global customers and support the continuing growth of its global business.

Meanwhile, in San Luis Potosi, Mexico, where Avintiv operates several spunmelt lines, an investment to add state-of-the-art printing as well as in-line slitting and packaging capabilities is underway. This will allow customers to take advantage of a full-service facility producing, printing and slitting material in a single location, taking advantage of the company’s print expertise while simplifying and reducing risk in the supply chain.

The planned expansion will bring print capacity to 600 million square meters at the site with the ability to produce multiple colors, narrow slit widths and enhanced registration. The new asset is expected to be commercial in the fourth quarter  of 2015.
Outside of disposables, PGI has upgraded machinery in Waynesboro, VA, which, like the acquisition of Fiberweb, has increased PGI’s filtration portfolio to include production and development assets for two nanofiber technologies.

In late 2014, Avintiv unveiled the first fruits of this investment, Everist brand filtration media. Calling the media the next answer in high efficiency filtration, executives said the nanofiber-based technology offers enhanced mechanical efficiency, low pressure drop and excellent dirt holding capacity, making it the ideal solution for companies in heating, ventilation and air conditioning (HVAC) or other industries reliant on high efficiency filtration media.

The launch also represented a significant step in the company’s strategic growth in filtration as the company continues to provide global customers with the most innovative and highest quality specialty materials possible.

In fact, growth in adjacent markets is one of the key operational imperatives at the company and the acquisition of Fiberweb, with its manufacturing assets in the U.S., the U.K., Germany, Spain and France and its presence in a range of technical markets including filtration, roofing and geosynthetics has helped achieve this goal. For its part, Berry has limited exposure to these markets and cited Avintiv’s role in them as another motivator for the purchase.

Plants: Worldwide Headquarters: Charlotte, NC; United States: Benson, Mooresville and Statesville, NC; Clackamas, OR; Old Hickory, TN; Waynesboro, VA. Canada: North Bay, Ontario. Latin America: Buenos Aires, Argentina; Pouso Alegre and São José dos Pinhais, Brazil; Cali, Colombia; San Luis Potosi, Mexico. Europe: Bailleul, France; Aschersleben, Beisheim and Berlin, Germany; Terno d’Isola, Italy; Tarragona, Spain; Cuijk, The Netherlands; Aberdare, United Kingdom; Maldon, UK. Asia: Mundra, India; Nanhai and Suzhou, China

Processes: Spunbond, meltblown, SMS, composites, through air bonded, adhesive bonded, resin bonded, thermal bonded, spunlace, airlaid, apertured film, film laminates, sonic laminated, extruded polyolefins, thermal laminated, Apex, Spinlace and other proprietary fabric forming, surfacing and binding systems
Trademarked Technologies: Apex, Amira, Arium, Nuvibond, Reemay, Spinlace, S-Tex, Typar
Brands: Agribon, Agryl Novagryl, Air-Gard, Chicopee, Chifonet Wipeschix, Chux, Comfortsilk, Covertan Pro, Durawipe, Geca Tapes, Medisoft, Medisoft Ultra, Pentamax, Reicrop, Reticulon, Soft-Touch, Spinlace, Sur-Prep Wipes, Reemay, Typar, Terram, Topswell, Tubex

With two major acquisitions under its belt as well as an ambitious growth strategy, PGI has become the world’s largest producer of nonwovens. In 2013, sales for the Charlotte, NC-based manufacturer exceeded $1.2 billion, up from$1.15 billion the prior year, thanks to the acquisition of Fiberweb during the fourth quarter, increased sales volumes in Asia as well as strength in the global healthcare and wipes markets.

These sales are expected to move considerably higher this year on the heels of the Fiberweb acquisition as well as the purchase of Companhia Providencia, which closed this May. These acquisitions, which had combined sales of about $700,000,000 place PGI out in front as the world’s largest maker of nonwovens.

“At PGI, we believe that the industry can benefit from a strong industry player,” says CEO Joel Hackney. “Fiberweb diversifies PGI from a portfolio perspective, adds some significant research and development activities as well as some tremendous industry talent.”

As Fiberweb helps to diversify the company outside of hygiene, the Providencia acquisition gives his company immediate access to the Brazilian hygiene market, which along with China, has been earmarked as an important growth area, as well as a state-of-the-art assets in North America. Providencia established a North American manufacturing operation in 2010 when it added a spunmelt line in Statesville, SC. A second line, the company’s 13th in total, was completed in early 2013. The line increased global capacity by 20,000 tons while allowing Providencia to develop higher value-added nonwovens and improve the product mix available to its U.S. customers.

“Not only does the Providencia acquisition give us geographical reach into faster growth regions like Brazil, it also give us access state-of-the-art technology and to some interesting new techonologies, like bicomponent nonwovens and laminating,” Hackney explains.

As competition intensifies in the hygiene market, PGI will defend itself with an arsenal of technologies developed by itself and its newly acquired companies. These include S-Tex, developed by Fiberweb, bicomponent material developed by Providencia and Premium Soft, a technology made by PGI in the U.S. and China.

PGI has also built a strong global manufacturing footprint to defend itself.  PGI has maintained a sharp focus in Latin America with investments in Cali, Colombia, Buenos Aires Argentina and San Luis Potosi, Mexico, and the Providencia acquisition now extends its reach into Brazil. Meanwhile, in the U.S., PGI has spunmelt operations in Waynesboro, VA and Mooresville, NC as well as a seven-line facility in Spain.

In non-hygiene related market, an area where PGI has been focusing as part of its diversification strategy, PGI has invested $8 million to upgrade machinery and expand its manufacturing plant in Waynesboro, VA. By the end of 2014, PGI will refurbish more than 20,000 square feet at the plant, upgrade an existing research and development machine used to create proprietary filtration technology, install two additional assets and improve the existing quality lab with state-of-the-art equipment.

According to PGI, the investment increases its portfolio for the filtration market to include assets for two nanofiber technologies. When the investment is complete, PGI will be one of the only nonwovens companies able to make every component needed to make synthetic composites for enhanced mechanical filtration applications. These composites will initially target the HVAC, facemask, fluid power and automotive cabin air markets.

“We are zeroing in on investing where we can add more customized solutions in areas where PGI has not yet invested,” Hackney says.

Growth in adjacent markets, in fact, is one of the key operational imperatives implemented by Hackney since taking over the helm of the company, and the acquisition of Fiberweb has given PGI nice headway in reaching this goal.

Acquiring Fiberweb gives us a tremendous opportunity to transfer technologies into new markets,” Hackney explains.

With 2012 sales reported at $460 million, Fiberweb operated plants in Old Hickory, TN, Aschersleben and Berlin, Germany, Pontypool, Maldon and Aberdare, U.K., Terno d’Isola, Spain, Mundra, India and Biesheim, France and operated through two divisions, technical fabrics and geosynthetics

In March, PGI announced it would exit the European roofing business, forcing the shutdown of two lines in Berlin and the closure of the Aschersleben facility. Officials chalked up the decision to its desire to optimize its portfolio for sustainable growth.

“We are constantly trying to improve the day-to-day of the business and we found that there were better roofing opportunities elsewhere,” Hackney explains. “In Europe, the big focus for us is healthcare, hygiene, wipes and filtration.”

Other imperatives put forth by Hackney include improve economic preparedness, increasing market share in China and Brazil and focusing on leadership by developing talent.

Like Latin America, China has seen considerable investment over the years from PGI. The most recent investment has been the construction of a new site in Nanhai, China, which replaces an existing site built in 1996 and will allow the company to expand its manufacturing capacity for high quality nonwoven products for the global hygiene and healthcare markets.

The investment will allow PGI to expand production of chemical bonded products for hygiene applications and better meet the needs of customers in the region.   PGI has operated in Nanhai for more than 15 years and the company will continue to expand the manufacturing footprint of the new site in sync with the needs of customers not only in China but throughout Asia.

The new Nanhai facility will combine the benefits of PGI’s current and new manufacturing technologies and is expected to be complete by the first half of 2016, with no disruptions to customers.

Elsewhere in China, PGI completed construction on a spunmelt line in Suzhou, China in mid-2013. This new line is targeting hygiene and healthcare customers in the region.

Investments like theses, in Asia and elsewhere, as well as the integration of its newly acquired investments will continue to provide PGI with strong growth prospects during the next couple of years. “PGI is on a very solid financial footing today,” Hackney explains. “It is not only growing topline but it’s a healthy cash generating enterprising. We are growing our sales and our earnings.”

Plants: Benson, NC; Mooresville, NC; Waynesboro, VA;; North Bay, Ontario, Canada; Cujik, The Netherlands; Tarragona, Spain; San Luis Potosi, Mexico; Buenos Aires, Argentina; Bailleul, France; Nanhai, China; Suzhou, China; Cali, Colombia
Processes: Spunbond, meltblown, SMS, composites, through air bonded, adhesive bonded, resin bonded, thermal bonded, spunlace, airlaid, apertured film, film laminates, sonic laminated, extruded polyolefins, thermal laminated, Apex, Spinlace and other proprietary fabric forming, surfacing and binding systems
Brands: Agribon, Air-Gard, Chicopee, Chicopee Cares, Chix, Chux, , Comfortsilk, Geca-Tapes, Durapex, Dura-Tex, Durawipe, Medisoft, Medisoft Ultra, Pentamax, Poly-Breathe, Poly-Safe, Reticulon, Soft-Touch, Spinlace, TopSwell. Trademarked Technologies: Apex, Amira and Arium

A new CEO and a Chinese investment are among the recent headlines from Polymer Group Inc., Charlotte, NC. The company is the world’s largest manufacturer of spunmelt nonwovens with plants around the world and is also a producer of a range of nonwovens technologies.

In 2012, the company reported sales volumes increased 6.1% but sales decreased slightly to $1.15 billion due to lower raw material pricing. According to executives, highlights of the year included increased volumes in the Americas thanks to stronger sales in hygiene and wipes markets as well as strong sales in the Asian healthcare and hygiene market, thanks in part to the startup of a new spunmelt line in China in 2011.

In June 2013, PGI announced that CEO Veronica Hagen was retiring from her post after six years. She will be replaced by Joel Hackney, who has held varied global executive roles with General Electric, Nortel and Avaya.

“I am pleased to join PGI and energized by the prospects that lie ahead for the company,” Hackney says. “I will be focused on building on the previous momentum and strong foundation. Specifically, I am committed to achieving economic leadership and accelerating many of the growth initiatives that have been identified in our focus markets and increasing our strategic position with key customers”

Before her retirement, Hagen oversaw the organizational redesign at PGI that realigned and repositioned the company to leverage the benefi ts of its global footprint, aligning resources and capabilities with future growth opportunities. Among the major components of the redesign is the creation of a Global Growth and Innovation (GGI) unit, which will be the growth engine of PGI.

Another component of this redesign was the consolidation of its U.S. and Latin America regions into a combined Americas region. Included in this division are PGI sites in Cali, Colombia; Buenos Aires, Argentina; San Luis Potosi, Mexico; Waynesboro, VA; Mooresville, NC; and Benson, NC.

This region continues to grow in importance to PGI despite the fact that the rapid rate of investment seen in the last decade has slowed in recent years. PGI’s most recent efforts in the region are a proprietary, custom-designed spunmelt line in Waynesboro, VA, which became operational in 2011 and a seventh line in San Luis Potosi, Mexico, which came onstream in 2010.

Meanwhile, across the globe investment continues in China, where PGI operates sites in Suzhou, China, where a state-of-the art spunmelt line came onstream in 2013, and Nanhai, where construction on a new site is currently underway.

The new plant in Nanhai, which replaces an existing site built in 1996, will allow the company to expand its manufacturing capacity for high quality nonwoven products for the global hygiene and healthcare markets. The investment will allow PGI to expand production of chemical bonded products for hygiene applications and better meet the needs of customers in the region.

PGI has operated in Nanhai for more than 15 years and the company will continue to expand the manufacturing footprint of the new site in sync with the needs of customers not only in China but throughout Asia.

“We see Nanhai’s location as a great spot to target growth in China as well as throughout Southeast Asia,” GGI Officer, Mike Modak says. “Adding a new plant will really give us the footprint to capitalize on this growth.”

The new Nanhai facility will combine the benefits of PGI’s current and new manufacturing technologies and is expected to be complete by the first half of 2016, with no disruptions to customers.

Elsewhere in China, PGI completed construction on a spunmelt line in Suzhou, China in mid 2013. The largest manufacturer of spunmelt nonwovens in the world, PGI also operates significant sites in Virginia, North Carolina, Spain, Argentina, Mexico and Colombia.

Modak says the company is constantly looking at new areas for growth, despite an excess of capacity in many parts of the globe. “Everywhere is on our radar screen,” he says. “We have a strategy that is global but also supporting our customers as they grow globally. We have the luxury of looking at the market from a broad base. Hygiene is strong but we also are seeing great things coming out of our industrial businesses and we like what we are seeing in healthcare. Even wipes continues to grow.”

Last year, PGI unveiled a new platform technology to help broaden its participation across several non-hygiene markets. Arium uses submicron fibers to produce a matrix of fibers to deliver improved performance properties in a variety of applications in healthcare, industrial, filtration and other segments.

“Arium is a completely new technology platform for the industry that will enable us to meet the market need for increasingly cost-effective fabrics with improved performance at a value proposition unmatched by any other submicron fiber technology,” said Hagen at the time of the launch. “Just as we did with our Apex and Spinlace technologies, PGI is leading the industry and investing in game-changing platforms.”

Currently produced, Arium technology has been generating significant interest across a number of product categories, Modak reports. The submicron fibers contained in materials produced with the Arium technology can provide higher surface area, biosafety and tunable porosity that enhance performance benefits such as absorbency, adsorption, opacity, softness, barrier protection, acoustic performance and high-efficiency filtration. The technology can be used alone or along with another technology.

“We are always looking at new technologies and the possibility of adding to our portfolio,” Modak says. “We see a lot of trends in the marketplace and we try as hard as we can to make sure our product offerings stand up to those trends.”

While Modak could not comment specifically on what is in the pipeline, he did cite improved softness in newer generation spunmelt products targeting the diaper market as one example of how PGI is constantly seeking ways to build out its portfolio.

“We have the luxury of looking at the market from a broad base,” he says. “Part of the challenge is getting the right sequence right, chasing the right markets and the right geographies.”