Locations: American Facilities -Charlotte, NC; Asheville, NC; Mount Holly, NC; Fort Smith, AR; Gainesville, GA; York, PA; Memphis, TN; Old Hickory, TN; Gatineau, QC; Buenos Aires, Argentina; San José, Costa Rica; Mexico City, Mexico; European Facilities – Scaër, France; Soultz, France; Dresden, Germany; Falkenhagen, Germany; Gernsbach, Germany; Steinfurt, Germany; Milan, Italy; Moscow, Russia; Asturias, Spain; Basel, Switzerland; Zug, Switzerland; Caerphilly, U.K.; Lydney, U.K.; Asia Pacific Facilities – Suzhou, China; Shanghai, China; Lanao del Norte, Philippines; Tokyo, Japan; Seoul, Korea; Kuala Lumpur, Malaysia

In February, Glatfelter, a manufacturer of airlaid, spunlace and wetlaid nonwovens, entered into a definitive agreement with Berry Global, the world’s largest nonwovens producer, to merge and form a leading, publicly traded company, which will be known as Magnera. With a focus on innovation, operational excellence and strategic market penetration, Magnera will have the broadest global product offering in high-growth markets for both polymer and fiber-based product applications, according to executives.

Curt Begle, president of Berry’s Health Hygiene & Specialties Division, who will lead Magnera as CEO, says, “Magnera’s purpose is to better the world with new possibilities made real. By continuously co-creating and innovating with our partners, we will develop original material solutions that make a brighter future possible. With a breadth of technologies and a passion for what we create, Magnera’s solutions will solve end-users’ problems, every day.”

Following the deal, Berry shareholders will control 90% of the company. Combined revenues will be approximately $3.6 billion.

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.

“The uniting of our organizations creates a premier nonwovens supplier and a global leader in specialty materials with the talent, technologies, scale and footprint to deliver commercial and operational excellence and a wide range of solutions for our customers,” says Glatfetler CEO Thomas Fahnemann. “Our combined company is scaled to accelerate innovation and leverage our intellectual property over a large, worldwide commercial platform and is well positioned to deliver substantial shareholder value.”

In 2023, Glatfelter’s performance was highlighted by several meaningful accomplishments where it eliminated costs from the business, refinanced the company’s debt, restructured the leadership team and optimized its portfolio.

“We also made significant progress closing the price-cost gap and implementing operational improvements that are enabling us to deliver margin improvements,” Fahnemann adds. “While these actions are improving our financial performance, we expect the full realization of benefits from our turnaround strategy when the market substantially recovers. We remain encouraged by the word that lies ahead, knowing the strategy is working and therefore, we are cautiously optimistic about our full year guidance despite the challenging business environment.”

Sales in 2023 were largely impacted by lower selling prices from cost pass-through arrangements and lower energy surcharges in Europe. Overall sales decreased from $1.49 billion to $1.38 billion during the year. Airlaid sales represented $586.5 million in sales. The technology continues to be an innovation leader in technical demanding segments and the largest market served by Glatfelter remains feminine hygiene, representing 37% of sales, but other markets include wipes, tabletop applications and other segments of the absorbent hygiene market.

Sales in the Composite Fibers segment, which includes food and beverage and wallcovering applications, accounted for $483.5 million of sales, while spunlace nonwovens sales accounted for $317.9 million. Glatfelter entered the spunlace market in 2021 through the purchase of Jacob Holm Industries and has since focused on improving profitability in the segment. These efforts have proven successful with the unit generating about $9 million in adjusted EBITDA in 12 months.

While wipes, encompassing many different segments and customers, continues to dominate spunlace sales, Glatfelter is targeting some materials to the hygiene market. Its GlatfPure topsheets are made from plant-based fibers using advanced spunlace technology to bring comfort, sustainability and customization to hygiene products. Initially made in Soultz, France, Glatfelter is expanding production of this material to its site in Asheville, NC.

Locations: American Facilities – Charlotte, NC; Asheville, NC; Mount Holly, NC; Fort Smith, AR; Gainesville, GA; York, PA; Memphis, TN; Old Hickory, TN; Gatineau, QC; Buenos Aires, Argentina; San José, Costa Rica; Mexico City, Mexico; European Facilities – Scaër, France; Soultz, France; Dresden, Germany; Falkenhagen, Germany; Gernsbach, Germany; Steinfurt, Germany; Milan, Italy; Moscow, Russia; Asturias, Spain; Basel, Switzerland; Zug, Switzerland; Caerphilly, U.K.; Lydney, U.K.; Asia Pacific Facilities – Suzhou, China; Shanghai, China; Lanao del Norte, Philippines; Tokyo, Japan; Seoul, Korea; Kuala Lumpur, Malaysia

Airlaid sales grew an impressive 27.9% in 2022 to reach $601.5 million at Glatfelter, one of the world leaders in the technology. With manufacturing facilities in the U.S., Canada and Germany, Glatfelter’s airlaid business has grown in recent years thanks to acquisitions, including Georgia-Pacific’s operations in North America and Germany, as well as a major line investment in Fort Smith, AR.

“Airlaid Materials continues to be a technology and product innovation leader in technically demanding segments of the markets it serves,” says COO Boris Illetschko. “Our airlaid material production employs multi-bonded, thermal-bonded and hydrogen-bonded airlaid technologies. We believe our facilities are among the most modem and flexible airlaid facilities in the world, allowing them to produce at industry-leading operating rates. Our proprietary single-lane festooning technology provides converting and product packaging capabilities that support efficiency in the customers’ converting processes.”

The feminine hygiene category accounted for 39.6% and 44% of airlaid material’s net sales in 2022 and 2021. Other markets include specialty wipes, adult incontinence items, home care and food pads. The company’s approach to innovation is to develop new products with enhanced sustainability profiles, through a greater reliance on plant-based materials that provide improved biodegradability and compostability, particularly in areas where the company can improve the sustainability profile of its customers’ products without compromising performance.

Recent developments in this area include GlatPure, a range of biobased and absorbent hygiene components derived from renewable materials like 100% plant-based renewable cellulose fibers and a range of organic binders.

Meanwhile, in new application areas, Glatfelter has partnered with Blue Ocean Closures to develop a cellulose-based airlaid bottle cap. Blue Ocean Closures is reportedly the first company to develop a concept for fiber-based screw cap solutions. This is achieved through excellence in material know-how and a cost-effective production concept using advanced, proprietary press forming.

Glatfelter aims to achieve a 95% fully plant-based offering of food and beverage and hygiene products by late 2023, achieved through customer collaboration.

Within Glatfelter’s spunlace business, a division established in late 2021 through the acquisition of Jacob Holm Industries, the company has developed Sontara EC Green, a 100% plant-based wipe made with Glatfelter’s proprietary Sontara technology. Sontara only requires water, not binders, adhesives or other chemicals, to form a strong and absorbent web.

Sontara EC Green offers an excellent alternative to non-biodegradable wipe materials, with exceptional strength and extremely low-lint cleaning properties while being environmentally responsible.

In the next few years, Glatfelter will make the most of its strengths to grow and expand its capabilities. The company’s strong business model will help improve cash flow, fine-tune pricing strategies, deal with rising energy costs and increase EBITDA growth in the spunlace segment. Glatfelter’s proven track record showcases its proficiency to upscale and facilitate organizational growth, both organically and inorganically.

Plants: American Facilities – Charlotte, NC; Asheville, NC; Mount Holly, NC; Fort Smith, AR; Gainesville, GA; York, PA; Memphis, TN; Old Hickory, TN; Gatineau, QC; Buenos Aires, Argentina; San José, Costa Rica; Mexico City, Mexico; European Facilities – Scaër, France; Soultz, France; Dresden, Germany; Falkenhagen, Germany; Gernsbach, Germany; Ober-Schmitten, Germany; Steinfurt, Germany; Milan, Italy; Moscow, Russia; Asturias, Spain; Basel, Switzerland; Zug, Switzerland; Caerphilly, United Kingdom; Lydney, United Kingdom; Asia Pacific Facilities – Suzhou, China; Shanghai, China; Lanao del Norte, Philippines; Tokyo, Japan; Seoul, Korea; Kuala Lumpur, Malaysia
Major Applications/Segments: Personal care and hygiene products; food and beverage filtration, critical cleaning products, medical and personal protection, packaging products, as well as home improvement and industrial applications

In 2021, Glatfelter’s sales exceeded $1 billion, making the company one of the world’s key airlaid manufacturers, along with the manufacture of its wetlaid and spunlace substrates. The company increased market demand despite the effects from pandemic-driven inflation and global supply-chain disruptions. Throughout this time, Glatfelter kept its facilities running successfully and continuously fulfilled demand on behalf of its customers which produce some of the world’s most well-known essential consumer staples, according to senior vice president & chief commercial officer Chris Astley.

“We strove to mitigate the impact of these extraordinary global conditions as the company remained committed to its growth strategies,” he says. “This included undergoing a strategic transformation focused on becoming a leading engineered materials company by accelerating growth through acquisitions, organic growth, supply chain effectiveness, product innovation with a focus on sustainability, and brand awareness.”

In recent years the company has grown largely through major acquisitions. In early 2021, Glatfelter cemented its footprint as a producer of airlaid nonwovens through the $175 million acquisition of Georgia-Pacific’s North American operations, including a large-scale airlaid line in Mount Holly, NC, and a research and development center in Memphis, TN. Glatfelter acquired G-P’s European operations, including an airlaid line in Steinfurt, Germany, in 2018 for $185 million.

The Georgia-Pacific transaction was followed by another sizable acquisition, Jacob Holm Industries, in October 2021 for approximately $300 million. The addition of Jacob Holm, which primarily makes spunlace nonwovens for wipes applications, expanded Glatfelter’s scale and diversification into high-performing and innovative spunlace nonwoven technologies. This includes the Sontara product portfolio, a globally renowned brand for high-end critical cleaning wipes, surgical drapes and gowns, wound care materials and facial masks. Sontara products deliver unique properties and are made using proprietary technology. Sontara uses no binders, chemicals or adhesives. It has exceptional mechanical strength and excellent absorbency and exhibits very low lint.

“The successful integrations of Mount Holly and Spunlace and realization of their synergies remain key imperatives for Glatfelter,” says Ramesh Shettigar senior vice president, chief finance officer & treasurer. “We are confident these new acquisitions will deliver long-term value to our customers and shareholders through portfolio diversification, technology expansion, accelerated innovation and enhanced scale. Despite the prevailing global challenges with inflation, supply chain constraints and pandemic-driven disruptions, we believe these acquisitions position Glatfelter favorably and bolster our leading position in the broader nonwovens sector.  As we continue our efforts to fully integrate these acquisitions, we are focused on building Glatfelter’s proven track record of operational excellence, cost optimization and strong cash flow generation.”

Glatfelter’s Airlaid Materials segment finished the 2021 year with a revenue of approximately $470 million. The global markets served by airlaid materials continue to have significant potential for growth. Glatfelter focused on maintaining and expanding relationships with customers that are market-leading consumer product companies, as well as companies converting and distributing through private label arrangements; capitalizing on its product and process innovation capabilities, including developing plastic-free technologies; expanding the geographic reach of markets served; optimizing the use of existing production capacity; and employing continuous improvement methodologies and initiatives to reduce costs, improve supply chain and create additional capacity.

Developing new applications for airlaid is also a priority for Glatfelter, which partnered with Blue Ocean Closures and ALPLA, to develop a cellulose-based airlaid bottle cap. Blue Ocean Closures is reportedly the first company to develop an innovative concept for fiber-based screw cap solutions that are fully biobased, ocean biodegradable and recyclable. This is achieved through excellence in material know-how and a cost-effective production concept using advanced, proprietary press forming.

“Combining the knowledge of fiber physics and airlaid technology, along with packaging and tool building, provided a means to manufacture cellulose-based screw caps with high form stability, excellent technical functionality, and a torque capability that the material could handle,” Astley says.

This partnership was awarded the IDEA22 Sustainability Advancement Award and is a finalist for the 2022 Packaging Europe Sustainability Award in the Recyclable Packaging (Pre-Commercialized) category for their innovative, sustainable, fiber-based screw caps. These awards were created to recognize companies that demonstrate excellence in innovation, sustainable product offerings, and outstanding contributions to the nonwovens and packaging markets.

Glatfelter’s Composite Fibers Business Segment reported annual net sales of approximately $560 million in 2021. This segment processes specialty long fibers, primarily from natural sources such as abaca and other materials, to create premium value-added products in the categories of food & beverage, wall cover, technical specialties, composite laminates, and metallized products. Many of the markets served by composite fibers present attractive growth opportunities due to evolving consumer preferences, new or emerging geographic markets and new product innovation, which enables superior products and quality.

For tea and coffee filter applications the newly developed Dynagreen product portfolio offers the most sustainable options in the market and is the first heat-sealable best-in-class filter paper in its category. These heat-sealable filters are made of compostable and biodegradable fibers such as abaca, cellulose and polylactic acid.

Glatfelter prioritizes the value of sustainability by focusing efforts on areas where products have the greatest local and global impact. By doing so, Glatfelter uses natural fibers to create products rooted in nature and engineered for performance.

Facilities: North/South America Facilities—Charlotte, NC; York, PA; Fort Smith, AR; Gatineau, QC; Mount Holly, NC; Gainesville, GA; San José, San Rafael, Costa Rica; Europe Facilities—Zug, Switzerland; Caerphilly, United Kingdom; Heidenau, Germany; Pritzwalk, Germany; Gernsbach, Germany; Lydney, United Kingdom; Nidda, Germany; Scaër, France; Steinfurt, Germany; Milano, Italy, Asia Facilities—Moscow, Russia; Suzhou, China; Lanoa del Norte, Philippines
Major Markets: Feminine hygiene, wipes, tabletop, adult incontinence, home care, food and beverage, building and industrial

Investment continues at Glatfelter Corp. The Charlotte, NC, manufacturer of airlaid and wetlaid nonwovens will significantly increase its exposure to the spunlace and wipes markets through the planned acquisition of Jacob Holm Industries, a deal announced in July 2021, for $308 million.

The acquisition of the Swiss nonwovens producer will include sites in North Carolina, Tennessee, France and Spain which manufacture high performing and innovative spunlace and advanced fiber-based sustainable solutions for the growing wipes, healthcare and hygiene categories. Jacob Holm’s global nonwovens sales are approximately $400 million per year and this has the potential for growth as the company completes a global investment program that is expected to add 500 million square meters to its annual nonwovens output.

“Today’s announcement represents another significant step forward in Glatfelter’s transformation. The combination of Jacob Holm’s quality spunlace and advanced fiber products along with Glatfelter’s industry-leading airlaid and composite fibers products will provide a best-in-class suite of nonwovens technologies, applications, and expertise to serve customers’ growing global demand. By acquiring Jacob Holm, we will further diversify our nonwovens and substrate offerings and enhance our overall innovation capabilities,” says Dante C. Parrini, chairman and CEO.

This acquisition follows Glatfelter’s purchase of Georgia-Pacific’s U.S. airlaid operations in May 2021 for $175 million. This deal included a large-scale airlaid manufacturing operation in Mount Holly, NC, as well as a nonwovens research and development center in Memphis, TN. The Mount Holly facility has a capacity of 37,000 metric tons and produces high-quality airlaid products focused on wipes and tabletop materials. G-P acquired the site through its purchase of Buckeye Technologies. This business generated approximately $100 million of sales and $20 million in EBITDA in 2020.

Glatfelter also purchased G-P’s European operation, an airlaid line in Steinfurt, Germany, in October 2018 for $185 million. This line added approximately 32,000 metric tons to the company’s global output.

Glatfelter’s latest organic capital investment was a new line capable of making 20,000 tons airlaid nonwovens in Fort Smith, AR, which came onstream in mid-2018, representing a $90 million investment. The new line has helped Glatfelter meet growing demand for wipes and sustainable substrates. Glatfelter’s state-of-the-art airlaid facility in Fort Smith expanded its airlaid capacity by 20%.

In 2020, Glatfelter’s airlaid business achieved record sales of $392 million despite a slowdown in the tabletop business brought on by restaurant closures amidst the Coronavirus pandemic. Feminine hygiene comprised the most of the airlaid segment’s sales, representing 52%. This market saw heightened demand in 2020 as consumers stockpiled necessity items.

Although everyone expected that there would be another increase in sales at the beginning of the second lockdown wave, there was not. This caused Glatfelter’s customers to have high inventory levels. Glatfelter has seen an increase in demand now that things have reopened and believe this trend will continue to rise as people become more comfortable stepping back into society.

To meet the demands of their customer, Glatfelter has manufactured the thickest and most absorbent wipe substrates on the market while remaining eco-friendly. The company is also committed to operating responsibly by using primarily plant-based raw materials from certified suppliers, reducing their energy and water consumption, and developing wipes substrates that do not contain chemically regenerated or fossil fuel based components. A need for this quality of wipes has increased throughout the years due to convenience and versatility.

Glatfelter’s airlaid materials can offer a sustainable alternative in disposable products because they use cellulosic wood pulp as the majority component (more than 70%). The balance is a combination of binder dispersions and fibers. Glatfelter is working on replacing the oil-based binders and fibers with plant-based materials and commercializing 100% plant-based airlaid products for wipes, tabletop, food pads and absorbent hygiene applications.

Glatfelter is devoted to operating as a responsible steward of the environment and creating a more sustainable world for future generations. This pledge is stated through their Core Value of Environmental Responsibility and their company-wide environmental policy.

The focus on sustainability also extends to Glatfelter’s composite fibers segment which includes wetlaid nonwovens targeted at applications including wall coverings and beverage filters. Sales in the composite fibers business were approximately $525 million in 2020. This segment showed continuous improvement, operational excellence and strong productivity.

The company’s Dynagreen portfolio offers the most sustainable options for tea and coffee filter applications in the market and is the best-in-class and first heat-sealable filter paper in its category. These heat-sealable filters are made of cellulose fibers and a natural plant-based polymer.

In industrial applications, Glatfelter successfully developed more efficient solutions for batteries and capacitors.

Glatfelter continues its journey of enhancing everyday life with engineered materials that are rooted in nature and engineered to perfection.

Plants: Canada, U.S., Germany, U.K., France, Philippines
Major Markets: Feminine hygiene, wipes, tabletop, adult incontinence, home care, food and beverage, building and industrial
Processes: Airlaid, wetlaid

Airlaid sales increased significantly in 2019 from $311 million to $406 million thanks to Glatfelter’s acquisition of an operation in Steinfurt, Germany, as well as a new facility in Fort Smith, AR. Growth was seen across all of the company’s key areas for airlaid including feminine hygiene, specialty wipes, tabletop, adult incontinence and home care.

While feminine hygiene continues to represent the division’s largest segment, its share dropped from 63% to 51% in 2019 reflecting continued diversification and the company’s growth in markets like wipes and tabletop products thanks to the Steinfurt acquisition and additional capacity in Arkansas.

The Fort Smith site, capable of making 22,000 short tons of material per year, came onstream in mid-2018 representing a $90 million investment. The new line has helped Glatfelter meet growing demand for wipes and sustainable substrates. “The current pandemic has increased consumers’ hygiene awareness which is reflected in the current markets,” says Chris Astley, chief commercial officer. “The state-of-the-art manufacturing facility in Fort Smith continues to be an essential component in Glatfelter’s global growth strategy.”

This facility primarily supplies material to the specialty wipes market which has helped Glatfelter meet the growing needs for light-weight substrates among customers in the North American market.

Meanwhile, Glatfelter’s latest European investment, an airlaid line in Steinfurt, Germany, was purchased from Georgia-Pacific in October 2018 for $185 million and adds approximately 32,000 metric tons to the company’s global output.

“With the addition of the Steinfurt site we acquired increased airlaid capabilities in Europe, which has enabled the optimization of our product portfolio and increased efficiency of our manufacturing assets,” he says. “Also, planning processes have been optimized, allowing us to effectively reallocate manufacturing capacity for faster response to customer demands.”

According to Astley, company research shows that demand for airlaid materials will remain strong given the increased use of personal hygiene products and strong demand for wipes. “We also remain committed to innovation by exploring new and expanded opportunities across all of our product segments.”

As customers continue to seek sustainable solutions, Glatfelter will continue its commitment to innovation and environmental responsibility to create products that give it a competitive advantage in an increasingly environment aware marketplace. “Our solutions help customers achieve their sustainability goals and demonstrate their environmental commitments to their customers,” he adds.

Glatfelter also operates a wetlaid nonwovens business that generated sales of $522 million in 2019. Glatfelter holds leadership positions in several of the product areas in which it plays, and believes many of the markets served with wetlaid technology present attractive growth opportunities.

Plants: Canada, Germany, U.S., France, Philippines
Major Markets: Feminine hygiene, wipes, tabletop, adult incontinence, food and beverage, wall coverings
Processes: Airlaid, wetlaid

Three major events occurred in 2018 that will influence sales at Glatfelter for years to come. For one, the company completed work on its 20,000-ton airlaid line in Fort Smith, AK; for another the company purchased competitor Georgia-Pacific’s European airlaid operation and finally, the sale of its Specialty Papers business unit, which has not impacted nonwovens sales but will open up new opportunities for the company in fast-growing markets like nonwovens.

The first major North American airlaid investment in nearly two decades, Glatfelter’s new facility in Fort Smith represents a $90 million investment for the company. Completed in the first quarter of 2018, the line is mainly serving the specialty wipes markets.

The site added 22,000 short tons of production capacity to Glatfelter’s global capacity bringing it to 129,000 tons, not including the Georgia-Pacific purchase.

At the official grand opening celebration for the new line, chairman and CEO Dante Parrini said, “We are excited to bring this new capacity and capabilities to our customers serving the growing North American market.”

Also in its airlaid business, Glatfelter announced in June 2018 it would acquire  Georgia-Pacific’s European operation in Steinfurt, Germany. The 32,000 ton-operation achieves sales of just under $100 million per year and Glatfelter purchased it for $181 million. It makes high quality airlaid products for the tabletop, wipes, hygiene, food pad and other end use markets.

“Glatfelter’s agreement to acquire the European nonwovens business demonstrates our commitment to building leading positions in global growth markets for engineered materials,” says Parrini. “Steinfurt’s products and technologies complement our current airlaid business very well and the acquisition provides synergistic capacity increase opportunities and an improved cost structure to support our ability to serve customers in growing consumer and industrial markets. From a financial perspective, the investment provides an attractive return on capital, is immediately accretive and will deliver attractive EBITDA margins in a growing market.”

In 2018, airlaid sales increased from $256 million to $311 million thanks to the contribution of the new line in Arkansas. The most significant growth was in the specialty wipes market, which is a key focus of the new line, where sales grew from $29 million to $45.5 million as well as tabletop where sales increased from $6.7 million to $21 million. In fact, growth occurred across all of Glatfelter’s airlaid categories, which also include feminine hygiene, adult incontinence and home care. Looking ahead, executives expect to see 8-10% organic volume growth in coming years thanks to the contribution of the Fort Smith site, the Steinfurt acquisition and the unique value these products offer to consumers.

The purchase of G-P’s European assets was partially funded by the third major event of 2018—Glatfelter’s divestment of its Specialty Papers business to the Lindsay Goldberg private equity firm for about $320 million. Glatfelter announced the sale in August after saying in February it was undertaking a review of strategic alternatives for the Specialty Papers business, which was formerly its largest division.

Glatfelter’s third business unit, Specialty Papers, in part contains its wetlaid nonwovens operation, which largely targets market like single serve tea and coffee and wall coverings.

In 2018, sales to the food and beverage markets increased from $268 million to $279 million while its wall coverings sales remained flat at $103 million. In 2019, this segment is expected to grow about 3% in volume terms in line with market demand which is driven by demand for single-serve coffee, tea wipes and electrical products. Glatfelter will continue to manage risks associated with the all coverings market and high input costs.

Plants: Canada, Germany, U.S., France, Philippines
Processes: Airlaid, wetlaid

A new plant and a major acquisition are the big news stories at Glatfelter, the world’s largest airlaid producer and a manufacturer of wetlaid nonwovens for the single-serve tea and coffee market and wall coverings applications.  The company’s total nonwovens sales clocked in at $627 million but are expected to grow thanks to the commercialization of its new North American airlaid line in Fort Smith, AR, and the acquisition of Georgia-Pacific’s European airlaid business.

In June, the company announced it would purchase G-P’s operations in Steinfurt, Germany, as well as its sales offices in France and Italy for $185 million, subject to customary purchase price adjustments. The Steinfurt facility produces high-quality airlaid products for the table-top, wipes, hygiene, food pad, and other nonwoven materials markets, competing in the marketplace with nonwoven technologies and substrates, as well as other materials focused primarily on consumer based end-use applications. The Steinfurt facility is a state-of-the-art, 32,000-metric-ton-capacity manufacturing facility that employs approximately 220 people.

“Glatfelter’s agreement to acquire the European nonwovens business demonstrates our commitment to building leading positions in global growth markets for engineered materials,” says Dante Parrini, chairman and CEO of Glatfelter. “Steinfurt’s products and technologies complement our current airlaid business very well and the acquisition provides synergistic capacity increase opportunities and an improved cost structure to support our ability to serve customers in growing consumer and industrial markets. From a financial perspective, the investment provides an attractive return on capital, is immediately accretive and will deliver attractive EBITDA margins in a growing market.”

In 2017, the business generated net sales of $99 million and EBITDA of $18 million. The company expects to realize synergies in excess of approximately $6 million per year within three years, and expects to incur one-time costs of approximately $7 million for transaction fees and integration.

Glatfelter announced the acquisition in June 2018, just eight days after the Grand Opening Ceremony for its state-of-the-art airlaid facility in Arkansas, which began operations during the first quarter of 2018.

The site is the company’s first investment in the U.S. Existing facilities are located in Gatineau, Canada, and Falkenhagen, Germany.  The additional 22,000 short tons of production capacity made at the site increases the company’s total global airlaid materials capacity to approximately 129,000 short tons, not including the G-P acquisition, making Glatfelter the largest producer of airlaid materials in the world.

Glatfelter’s airlaid materials are found in a wide range of personal care products, including feminine hygiene and adult incontinence products, specialty wipes, tabletop, and homecare applications. The Fort Smith facility primarily supplies material to the specialty wipes market.

“We are excited to bring this new capacity and capabilities to our customers serving the growing North American market,” says Parrini.

In 2017, Glatfelter’s airlaid sales reached $256 million, 70% of which were sold to customers in the feminine hygiene market. Other important markets for the company include specialty wipes and adult incontinence, which both reported sales growth of 14% this year.

Outside of airlaid, Glatfelter makes wetlaid nonwovens for markets like the single serve tea and coffee and wallcoverings, which are a part of its Composites Fibers business. Sales decreased slightly in food and beverage but were up significantly in wallcoverings. Looking ahead the company plans to continue to capitalize on both of these markets, which are considered to be growing globally by making targeted investments to create incremental capacity to serve growth markets and leveraging innovation resources to drive new product and new business development.

In addition to Advanced Airlaid and Composite Fibers, Glatfelter operates a third division Specialty Papers. The largest of its three divisions, representing about 50% of sales, specialty papers serves many market segments served by declining demand resulting in excess capacity, lower operating rates and pricing pressures. In August, Glatfelter announced plans to sell this division to private equity firm Lindsay Graham. The company had previously announced, in February 2018, that it would undertake a review of strategic alternatives for specialty papers including the potential sale of the unit.

Parrini says, “Our Specialty Papers business continued to face challenging market conditions which, when coupled with operating inefficiencies, led to lower profitability during the quarter.  We are encouraged by recent announcements of price increases and additional industry capacity being taken out of the market which should be constructive for the business going forward.  Our focus remains on aggressively pursuing cost efficiencies and process improvements to improve profitability.”

Plants: Canada, Germany, France, UK, Philippines
Processes: Airlaid, wetlaid

As it waits for its new North American airlaid line to come onstream, Glatfelter continues to increase its volumes thanks to improvements on its existing lines. In 2016, the company’s Advanced Airlaid Materials business achieved record volumes thanks to increases out of its Gatineau, Quebec, facility, which holds two side-by-side airlaid lines. Airlaid sales represented 15.2%, or $244 million, of Glatfelter’s total sales.

Other bright spots of the business included 12% growth in the company’s wipes business thanks to a new specialty wipes business, which will likely be a key target market for Glatfelter’s new airlaid line, which is set to come onstream in Fort Mill, AR, later this year. Glatfelter announced in December 2015 it would invest  $80 million in the new facility which will meet unmet demand in North America for materials used in lighter weight hygiene and disposable wipes products, according to Dante Parrini, chairman and CEO.

“Our plan to build this new facility is in direct response to customer needs for increased capacity in a tightening North American airlaid market,” he adds.

The new facility will have an annual capacity of approximately 22,000 short tons, which will increase the company’s total global airlaid materials capacity to approximately 129,000 short tons. The investment, which was only finalized after a customer committed to purchasing a significant amount of the capacity, will establish a specialty asset base in the U.S. and create a center of excellence for other lighter basis weight products. It will be complete in early 2018. It will be located in close proximity to several key customers and highly efficient transportation routes in the southern U.S., as well as where it will have additional access to a high-quality, skilled workforce.

In addition to the new Fort Smith facility, Glatfelter has airlaid operations in Canada and Germany as well as other facilities in the U.S., France, the U.K. and the Philippines. The company, headquartered in York, PA, employs more than 4300 people worldwide.

Glatfelter’s most recent airlaid investment was a new line in Falkenhagen, Germany, in 2010. Its current airlaid capacity is approximately 100,000 tons of nonwovens per year.

Even though airlaid sales reached record volumes, in dollar terms they decreased from $281 million to $244 million due to currency fluctuations. The feminine hygiene market accounted for the majority, 71% of sales, and customers include a few large, leading consumer products companies. Other key markets include wipes, adult incontinence and home care.

In addition to airlaid, Glatfelter makes wetlaid nonwovens for markets including food and beverage and wall coverings. These businesses are contained within the company’s Composite Fibers business, where nonwovens-related sales were about $350 million last year.

The largest market within this business, representing about $258 million in sales, is food and beverage, which primarily serves the single serve coffee and tea market. This year, Glatfelter was named “Supplier of the Year” by Keurig Green Mountain, Inc. (Keurig), a leader in specialty coffee and innovative single serve brewing systems. The award recognizes both Glatfelter’s high performance and its demonstrated commitment to Keurig’s values.

Paul Iaderosa, Keurig’s senior vice president, Procurement, says, “Being named Keurig’s Supplier of the Year is a significant achievement and a recognition that Glatfelter continues to go above and beyond expectations.  In 2016, Glatfelter displayed superior responsiveness to our evolving business needs, leading to improvement of the materials it provides and optimization of our supply chain.”

“At Glatfelter, we are focused on the innovation, quality and service we bring to each of our products and customers around the world, every single day,” Parrini says. “We are committed to fulfilling our vision of becoming the global supplier of choice in specialty papers and engineered materials.”

Another important business within the Composite Fibers business is wall coverings, a business that was acquired from Dresden Papier in 2013. Sales of wall coverings have begun to rebound in late 2016 and 2017 thanks to better socioeconomic conditions in Russia and the Ukraine as well as the closure of a major competitor in Europe.

Earlier this year, the Dresden facility in Heidenau, Germany, was recognized for service excellence, consistent high quality, and long-term cooperation by Russia’s largest wall cover producer, KOF Palitra. Glatfelter was presented this award during Palitra’s 15-year anniversary reception held last month in Moscow, Russia. The award recognizes the premium quality, efficient convertibility, and overall consistency of Glatfelter’s nonwoven wall cover substrates.

Plants: Canada, Germany, France, U.K., Philippines
Processes: Airlaid, wetlaid

The big news from airlaid specialist Glatfelter is the company’s decision to build a new airlaid line in the U.S. The York, PA-based company announced in December 2015 it would invest  $80 million in a new production facility for its Advanced Airlaid Materials business (AMBU). In March, the company revealed it would be built in Fort Smith, AK.

“Our Advanced Airlaid Materials business is a global growth platform that has a unique opportunity to capitalize on increasing and unmet demand in North America for the materials used in lighter-weight hygiene and disposable wipes products,” says Dante Parrini, chairman and CEO. “Our plan to build this new facility is in direct response to customer needs for increased capacity in a tightening North American airlaid market.”

The new facility, which is currently under construction, is expected to have an annual capacity of approximately 22,000 short tons, which will increase the company’s total global airlaid materials capacity to 129,000 short tons. The investment, which was only finalized after a customer committed to purchase a significant amount of the capacity, will establish a specialty asset base in the U.S. and create a center of excellence for other lighter basis weight products. It will be complete in early 2018.

“We are planning to locate this facility in close proximity to several key customers and highly efficient transportation routes in the southern U.S., as well as where we have additional access to a high-quality, skilled workforce,” says Chris Astley, senior vice president and business unit president, Advanced Airlaid Materials.

The new line will be housed in a former Mitsubishi Power Systems building in Fort Smith, where Glatfelter will create up to 83 highly skilled manufacturing jobs.

Glatfelter’s new Fort Smith facility will supply products to a variety of customers, including those who support the broader wipes and hygiene markets.

“We are truly excited to partner with the people of Fort Smith and Arkansas because we know that investing here makes great business sense for our company,” Astley says. “Locating here benefits our business in a number of ways.  It will enable us to expand our capacity to meet our customers’ growing demand for our advanced airlaid products, provide us with closer proximity to key suppliers and customers and link us to highly efficient transportation routes across the South.  Equally important, it will allow us to tap into the area’s high quality workforce.”

In addition to the new Fort Smith facility, Glatfelter has 12 production facilities located across the U.S., Canada, Germany, France, the U.K., and the Philippines. The company, headquartered in York, PA, employs more than 4300 people worldwide.

Glatfelter’s most recent airlaid investment was a new line in Falkenhagen, Germany in 2010. In addition to the Falkenhagen site, which now contains three airlaid lines, Glatfelter has two airlaid lines in Quebec, Canada. Together these five lines make about 100,000 tons of nonwovens per year.

In 2015, airlaid sales decreased from $281 million to $244 million due to currency fluctuations. The feminine hygiene markets accounted for the majority, 74% of sales, and customers include a few large, leading consumer products companies. The airlaid wipes market, while a smaller business for Glatfelter, is growing steadily, increasing from $16 to $23 million between 2014 and 2015 and the new airlaid line will continue to boost sales in this category. Other key markets include adult incontinence and home care.

Glatfelter’s Composite Fibers business, which contains wetlaid nonwovens production, for the food and beverage wallcoverings and other specialty markets, also was impacted by currency fluctuations, decreasing in U.S. dollar terms from $617 million to $541 million.

The largest market within this business, representing about $274 million in sales is food and beverage, which primarily serves the single serve coffee and tea market. Another important business is wallcoverings, a business that was acquired from Dresden Papier inn 2013. While wallcoverings remains an important area for Glatfelter, sales in this segment have been adversely affected by socioeconomic conditions in Russia and the Ukraine, since the beginning of 2015.

In addition to its Advanced Airlaid and Composite Fibers business, Glatfelter operates a third, larger business segment Specialty Papers, which does not include any nonwovens operations. In 2015, sales of this segment were $875 million, representing about half of corporate sales. This segment has not been growing as rapidly as the other two units, largely due to Glatfelter’s strategy of increasing its exposure to engineered and fiber based businesses like nonwovens.

Plants: Canada, Germany, France, UK, Philippines
Processes: Airlaid, wetlaid

Glatfelter continues to make progress in both increasing earnings and marketshare within its engineered fibers-based businesses. The company manufactures wetlaid nonwovens for food and beverage and wall covering applications through its Composite Fibers business unit (CFBU) and airlaid nonwovens for the feminine hygiene, adult incontinence and specialty wipes through its Advanced Airlaid Materials business unit (AMBU). Last year, total nonwovens sales were about $731 million.

Glatfelter’s Advanced Airlaid Materials business unit reported its best year since being acquired from Concert Industries in 2010 and has steadily improved its performance. Last year’s sales were $281.7 million, an increase of 5% over 2013 thanks to demand for airlaid in the adult hygiene and specialty wipes market, particularly in North America. Meanwhile its profits increased 18% during the same period.

According to the company, the majority of airlaid sales, 77%, are done within the feminine hygiene market to a handful of customers, but in 2014 adult incontinence sales charted the most growth, from $5 million to $17 million thanks to the successes of a major customer.

In 2015, Glatfelter plans to introduce a product specifically for the adult care market, and executives said that hygiene markets in general continue to be the best match for Glatfetler’s airlaid technology.

“Our Advanced Airlaid Materials business will continue to focus on new product development and innovation to support our existing core hygiene markets, as well as penetration of adjacent markets,” says Christopher Astley, senior vice president & business unit president, Advanced Airlaid Materials. “This will complement our continued efforts to support more efficient and effective production and delivery of our products to customers.  Given its unique functional qualities as well as its use of highly sustainable and biodegradable cellulose fibers, we expect the application of airlaid to continue to grow in both developing and emerging regions of the world.”

Glatfelter operates five airlaid lines in Germany and Canada, which together make about 100,000 tons of materials of nonwovens per year. While the market has repeatedly been described as tight, so far Glatfelter has made no plans to add another line and is instead focusing on optimizing its current production levels to increase volumes.

“As one of Glatfelter’s platforms for growth, Advanced Airlaid Materials continues to evaluate both organic and inorganic growth opportunities in the marketplace,”  Astley says.

One significant opportunity is in core materials. Last year, Glatfelter began promoting  its eCore engineered core and Icore integrated core materials within the hygiene market. Both are pulp-based airlaid substrates that contain as high as 85% superabsorbent polymer (SAP) and create an end product that is significantly thinner and more discrete than existing diapers and other absorbent devices while reducing costs associated with SAP spillage.

The product offers a much more efficient use of powders. It reduces usage of SAP by as much as 20% due to reduced spillage, uniform distribution of powder and improved free-swell. “Innovation continues to be a key capability of our Advanced Airlaid Materials business and we continue to develop and refine material platforms that will be useful to our customers and their markets,” Astley says. “Both our eCore and iCore platforms are aimed to support the global hygiene markets as customers seek to differentiate themselves in the broader marketplace.”

With lines in North America and Europe, Glatfelter has recently taken some steps to broaden its reach in Asia where hygiene growth, estimated between 7-12% depending on the subregion, is outpacing more developed regions. Glatfelter has opened a full-fledged sales and representative office in China, where it currently has several employees assessing the market and developing relationships with customers in the region. So far no plan for a manufacturing investment in this region has been announced.

“As we consider growth opportunities, Advanced Airlaid Materials continues to evaluate a number of emerging markets, including Asia,” Astley says. “As disposable income and consumer education increase, we expect broader growth in emerging markets will continue. Contemplating growth in emerging markets will be balanced with the opportunities we believe still exist in the more developed markets of the world.”

Turning toward Composite Fibers, this business unit makes wetlaid nonwovens for applications in the food and beverage market as well as the wall covering market. In 2014, sales decreased slightly in food and beverage but increased sharply in wall coverings, a market Glatfelter entered in 2013 through the acquisition of Dresden Papier, a leading producer of nonwoven wallpaper-based materials. Based in Heidenau, Germany, this business operates a state-of-the-art 60,000 metric ton operating facility solely dedicated to wall coverings. In 2014, wall covering sales contributed nearly $150 million to Glatfelter’s total revenues.

Acquisitions like the airlaid business and Dresden Papier are in sync with Glatfelter’s strategy of exposing itself to grow businesses and boost its share of its engineered and fiber-based businesses, which now represent about half of sales. The next leg in this strategy will reportedly be expansion into the dispersible wipes market. The company is reportedly investing $4 million in developing a substrate to target this market through its Composite Fibers business.

Plants: Canada, Germany, France, UK, Philippines
Processes: Airlaid, wetlaid

P.H. Glatfleter Co. continues to make progress in both increasing earnings and market share within its engineered fiber-based business. Three-and-a-half years after acquiring airlaid manufacturer Concert Industries, its newly created advanced airlaids materials division is a major nonwovens producer, and one of the world’s largest maker of airlaid nonwovens.

The York, PA-based company has its roots in paper making but also operates a sizable wetlaid business in addition to the aforementioned airlaid business. In April 2013, Glatfelter further broadened its scope through the acquisition of Dresden Papier, a leading producer of nonwoven wallpaper base materials and a supplier to many of the world’s largest wallpaper companies.

The company’s advanced airlaid material business reported sizable growth in 2013, up from $246 million in 2012 to $268 million in 2013. The bulk of these sales, about 82%, are conducted within the feminine hygiene market to a small group of large, multinational companies, but other key markets include wipes, home care and adult incontinence. This material, over 100,000 tons of it, is made at sites in Gatineau, Quebec, Canada and Falkenhagen, Germany.

“It has been a very encouraging journey,” says Jonathan Bourget, vice president and general manager of the advanced airlaid material business. “After the acquisition of Concert we had a bit of a learning curve and we had to make necessary changes to meet expectations but our progress has been very encouraging, thanks to the dedication of our employees and the trust of our customers.”

One notable performance improvement is the division’s earnings profile, which increased from $4.4 million to $21.5 million during the past three years due to efficiency improvements, waste elimination, share expansion, volume growth and innovation that have been a key focus since the acquisition, according to Bourget.

Also helping to boost productivity, and by extension earnings, was the 2012 investment in a new festooner line in Gatineau, Quebec, the home of two airlaid lines. The investment was the second festooner at the site.

With the bulk of its business in Europe and the Americas, Glatfelter has recently taken some steps to broaden its reach into Asia where hygiene growth, estimated between 7-12% depending on the subregion, is outpacing more developed regions. Glatfelter has opened a full-fledged sales and representation office in China, where it currently has several employees assessing the market and developing relationships with customers in the region.

“For now, the company is seeding this market from its operations in Europe but as this region has the most promise in terms of growth, a more substantial presence could be considered in the future,” says Bourget. “For now, no definitive plans have been made. We need to better understand the market.”

Meanwhile, in new product development this spring Glatfelter began promoting eCore material, a pulp-based airlaid substrate containing as high as 85% super absorbent polymer (SAP). Intended for use in adult incontinence products and baby diapers, eCore can create an end product that is significantly thinner and more discrete than existing diapers and other absorbent devices while reducing costs associated with SAP spillage.

According to Bourget, products featuring the technology are now available at select retailers in Germany and the technology can be used in light incontinence products all the way to pull-up adult or baby diapers. “It is a much more efficient use of powders. It reduces usage of SAP by as much as 20% due to the lack of spillage, uniform distribution of powder, and significantly improved free-swell,” he says.

While some airlaid producers have attempted to break out into new markets for the technology, Glatfelter has chosen to continue its focus in the personal care market.

“There are very diverse markets for airlaid but some of the industrial or specialty markets are very small—medical applications for wound care or insoles, or even some categories of food packaging,” he says. “All of these are interesting, and while we will continue supporting these where it makes economic sense, our choice has been to focus on personal care. This is where we have the best skills and technology to offer the market.”

The other arm of Glatfelter’s nonwovens business, wetlaid materials for food and beverage products and wall coverings, is contained within the group’s composite fibers business.

In 2013, this business was boosted by the acquisition of Dresden Papier GmbH, a leading producer of nonwoven wallpaper based materials. Previously owned by Fortress Paper, a Canadian firm, Dresden is based in Heidenau, Germany, near Dresden where it operates a state-of-the-art 60,000 metric ton operating facility solely dedicated to the wallcovering market.

At the time of this acquisition, executives described it as a continuation of Glatfelter’s focus on adding industry leading nonwoven product lines to its composite fibers business and predicted it would grow about 10% per year.

Acquisitions like the airlaid business and Dresden Papier are in sync with Glatfelter’s strategy of exposing itself to grow businesses and boost the share of its engineered and fiber-based businesses, which now represent about half of total sales and 64% of earnings. Meanwhile, the group’s legacy paper business, the specialty papers business unit, now account for just half of the business.

Processes:Airlaid, Wetlaid

The acquisition of a major manufacturer of wallcovering materials is proof that Glatfelter continues to focus on growth markets. In March, the maker of airlaid and wetlaid nonwovens sealed a deal to acquire Dresden Papier, a leading producer of nonwoven wallpaper base materials and a supplier to most of the world’s largest wallpaper manufacturers. Previously owned by Fortress Paper, a Vancouver, B.C., Canada company, Dresden is based in Heidenau, Germany, near Dresden, where it operates a state-of-the-art, 60,000 metric ton operating facility solely dedicated to the wallcovering market.

At the time of the reported €160 million ($210 million) acquisition CEO Dante Parrini described the acquisition as a continuation of Glatfelter’s focus on adding industry leading nonwoven product lines to its composite fi bers business. The nonwoven based wall covering market is projected to grow 10% per year in coming years, outpacing demand for traditional paper products.

“We see a lot of growth potential for the wallpaper market, particularly in areas like China and South Korea,” says Martin Rapp, vice president and general manager of composite fibers.

Dresden Papier, soon to be rebranded into Glatfelter Dresden GmbH, is now a part of Glatfelter’s composite fibers business, which has been earmarked as a strong growth area for the company as it lessens its reliance on specialty papers.

Since 2006, Composite Fibers, along with the company’s Advanced Airlaid materials business, which was acquired from Concert Industries in 2010, have grown to represent 43% of the group’s sales compared to 30%. Specialty papers meanwhile, which once comprised 70% of sales, now account for 57% of Glatfelter’s business. This shift comes as a result of the company’s strategy of exposing itself to growth businesses, according to Parrini.

In 2012, Glatfelter continued to improve its position on both sides of its nonwovens business—composite fibers containing its wetlaid assets and advanced airlaid. Wetlaid sales grew 4-5% largely in technical and industrial applications such as wipes, furniture and tea bags while airlaid volumes increased 7%, largely driven by advances in feminine hygiene and wipes.

According to Jonathan Bourget, vice president and general manager of advanced airlaid materials, Glatfelter’s airlaid operations, including operations in Canada and Germany, continue to see their supply tighten, leading the company to begin investigating smart ways to increase its global output.

“Strength in airlaid is being driven by downgauging, relying on less material usage in terms of basis weight and the simultaneous increase of square meter volume,” says Bourget.

Also driving growth is the need for market development largely in the personal care segment. “These markets are large enough and rich enough that they are constantly looking at new products,” says Bourget. “I think there is a shift in consumer taste that is promoting new product development in airlaid.”

Glatfelter entered the airlaid business through the acquisition of Concert in 2010 as part of a strategy, begun in the early 2000s, to transform itself from a traditional paper company into a global provider of engineered materials and specialty paper-related products.

While the airlaid business has been in the headlines Glatfelter’s wetlaid operations also continue to grow. The considerable boost from the Dresden acquisition should add about $150 million in sales and $38 million in earnings to the operation.

Apart from wallcoverings the composite fibers business unit is developing rapidly in the electrical segment. Last year the company made a significant investment into a dedicated machine in France. In addition Glatfelter is partnering with DreamWeaver to make a new generation of high performance affordable separators targeted for energy storage devices such as lithium-ion batteries. This partnership will allow DreamWeaver to leverage Glatfelter’s state-of-the art inclined wire capabilities and expertise in making advanced fiber-based engineered materials.

Glatfelter continues to optimize the use of its eight inclined-wire machines to produce a diverse range of products including, nonwoven energy storage materials for the capacitor and lead-acid battery markets. These new fi ber-based materials possess superior porosity and excellent web uniformity in low basis weight and thickness.

“DreamWeaver’s technology is a natural fit, allowing us to extend our presence in the growing energy storage market with innovative and proprietary technology,” says Rapp.