Plants: Japan, Mexico
Processes: Resin bonded, needlepunched, thermal bonded, wetlaid, spunlaced, meltblown, tackspun
Major Markets: Apparel interlinings, apparel insulations, air filters, plaster bases, automotive mats, automotive headliners and battery electrode separators

For the fiscal year ended March 31, 2015, Japan Vilene Group’s net sales were ¥56.5 billion ($456 million), a 3.5% increase compared to the previous fiscal year, while nonwovens sales were reported at ¥19.7 billion ($159 million). In the apparel and medical materials segment, sales rose to ¥10 billion ($80.7 million), a 1.1% increase compared to the previous fiscal year. According to the company, sales of interlinings declined from the previous year largely due to low sales of men’s and women’s wear. Sales of cold compress-based materials decreased from the previous year due to weak sales of domestics, though overseas sales were strong and new products boosted sales of plaster-based materials. The sale of face masks increased from the previous year due to strong sales of decontamination use while demand in coolin gel sheets and cosmetic face masks boosted  medical cosmetic materials sales.

Sales for air filter materials were ¥8.1 billion ($65.4 million), up 5.2%. While sales of filters for general use decreased from the previous year, sales of medium and high efficiency filters increased from the previous year. Sales of cabin air filters for automobiles decreased largely from the previous year due to moving the production site overseas and because of sales decreasing both in Japan and overseas. Total sales of the air filtration sector increased mainly due to the August 2013 acquisition of Oshitari Laboratory, Inc.

Sales of Japan Vilene’s electricity and industrial material sales dropped 12.9% to were ¥8.7 billion, and sales of battery separators for hybrid vehicles decreased largely from the previous year due to low sales of hybrid vehicles in North America. Sales of Nickel hydride separators for general-use decreased from the previous year due to weak demand for batteries, while lower demand for electrical tools brought sales of Nicad battery separators down. Other areas facing decreases included photocopier cleaning rolls, liquid filters and printed circuit boards.

Automotive materials sales were ¥28.9 billion ($233.2 million), up 10%. Sales of floor mats in North America increased from the previous year thanks to the favorable sales of cars, success of the new Mexican factory and exchange rate movement. Sales of floor mats in Japan decreased from the previous year because sales of new cars declined after last-minute demand, but they grew in Asia thanks to Chinese strength. Sales of headliner materials in North America increased from the previous year due to increasing automobile production and exchange rate movement. Domestic sales exceeded the previous year due to good sales of new orders and export cars.

In August, Freudenberg SE and Toray Industries announced they would acquire all shares of Japan Vilene through FT Holdings K.K., with Freudenberg and Toray will own 75% and 25% of the common shares of the company, respectively. Currently, Freudenberg owns 33.4% of Japan Vilene (17.6 billion)—being the largest shareholder of the company—and Toray owns 17.49% (9.2 billion shares)—the second largest shareholder.

Once the acquisition is final, Freudenberg and Toray will enter into a shareholders’ agreement with respect to the operation of Japan Vilene, which will require Freudenberg to obtain Toray’s prior consent when making decisions on certain material matters of the company. Additionally, transfer of the shares of Japan Vilene requires consent of the other party, and each party has the preemptive right in proportion to its shareholding ratio when the company issues new shares.

Plants: Japan, Thailand, Mexico
Processes: Resin bonded, needlepunch, thermal bonded, wetlaid, spunlaced, meltblown, tackspun
Major markets: Apparel interlinings, apparel insulations, air filters, plaster bases, automotive mats, automotive headliners, batter electrode separators

For the fiscal year ended March 31, 2014, the weakness of the Japanese yen benefitted exports and share prices, a situation that benefitted Japan Vilene Group, which reported a 13.4% increase to ¥54.5 billion ($532 million) in corporate sales as well as a 164% increase in consolidated operating income. Nonwovens sales were reported at ¥20.9 billion ($204 million).

In August 2013, the company published its three-year mid-term plan 2013-2015, through which it stated a goal of achieving consolidated net sales of ¥61.5 billion ($600 million) and consolidated operating income of $42 million by 2015. Furthermore, the company intends to promote its eight basic strategies of the Mid-Term Management Vision and strengthen structural profitability in order to be unaffected by changes in the external environment. Specifically, Japan Vilene  has set out four “key challenges” as priority policies—promoting new products and businesses; expanding core businesses and strengthen profitability; improve productivity and strengthen human resources training and development.

In fiscal 2014, within the apparel and medical materials department, interlining and wadding sales decreased due to lower domestic women’s clothing sales while sales of cold compress base masks and medical cosmetic materials increased.

In the industrial and electrical materials department, sales of battery separators for hybrid vehicles decreased from the previous year due to the specificiation change of some car models while sales of nickel hydride separators for general use increased due to strong overseas demand. Sales of Nicad battery separators decreased due to a weak demand for electrical tools. Sales of photocopier cleaning rolls decreased due to the trend of going paperless in many offices

In the air filtration department, sales of general use media remained flat as washable filter sales were low and spray painting filters and other disposable products were up. Sales in the medium and high efficiency filter category decreased as did cabin air filter sales. However, division sales were up significantly following the acquisition of Oshitari Laboratory, a Tokyo-based manufacturer of chemical filters and electric discharge machines, in August 2013.

According to Japan Vilene, Oshitari’s products and market are different from those of Vilene and the two companies will benefit from many synergies.

Within automotives, floor mat sales increased in North America on the heels of the establishment of a new company in Mexico. Sales increased in Japan also due to favorable car sales and Asia. The new site in Mexico was established in May 2012 and began making nonwovens for floor mats in January 2013. It was established to ensure the stable supply of automotive floor mats in Mexico as Japanese car manufacturers and major automakers are expanding production there.

Looking ahead into 2014, Vilene expects floor mat sales to increase further on the establishment of a Thai subsidiary to manufacture floor mats for the ASEAN region where sales of new cars are growing rapidly.

Meanwhile sales of headliner materials decreased due to design changes of some of its customers. To combat this the company has installed a multifunctional printing line to make Twinetex, a three-dimensional headliner material that was introduced to market in 2011.

Plants: Shiga, Tokyo
Processes: Resin bonded, needlepunched, thermal bonded, wetlaid, spunlaced, meltblown, tackspun
Major markets: Apparel interlinings, apparel insulations, air filters, plaster bases, automotive mats, automotive headliners, battery electrode separators

Reporting increases across several segments was Japan’s largest nonwovens producer Japan Vilene. The Tokyobased company says its sales rose in apparel and medical, electricity and industrial and automotive materials while sales within the air filtration market were down.

In regional terms, sales decreased in Japan but increased significantly in both Asia and North America. North American sales particularly increased 37% due to the formation of Vitech Manufacturing, an automotives material manufacturing business formed in partnership with Freudenberg, the world’s largest producer of nonwovens and a long-time Vilene partner.

Sales in apparel and medical were driven by increased production of the epithem medicine base cloth overseas while electrical and industrial materials sales were boosted by increased battery separator sales. Automotive sales benefited from increased floor mat sales as well as increased use of Vilene products in ceiling facing materials. Vilene is also hoping to grow sales in this division through the establishment of an automotive mat manufacturing facility in Thailand, which will sell materials not only within Thailand but also throughout Southeast Asia.

To help it boost sales in the faltering air filtration market, Vilene acquired shares of Oshitari Labs, a manufacturer of filters for industrial air conditioning units.