Kibutz Shamir, Israel
www.shalag.co.il
2024 Nonwovens Sales: $170 million

Key Personnel
Ilan Pickman, CEO

Plants
Israel, North Carolina, Italy (Texsus)

Processes
Air-through bonded, thermal bonded, stitchbonded, needlepunch

Major Markets
Baby diapers, feminine hygiene, adult incontinence, wipes

Recent news from Israel’s Shalag Nonwovens is investment in air through bonding technology at a new site in South Hill, VA, a strategic move that significantly increases Shalag’s production capacity, allowing the company to better serve its U.S.-based clients with localized support, enhanced responsiveness and the scalability needed to meet growing market demand.

According to executives, the decision to invest in Virginia was driven by a comprehensive analysis of market dynamics and evolving consumer preferences. Of particular influence was the growing demand for air-through bonded (ATB) nonwovens in North America, particularly as product design trends shift toward enhanced softness, increased microfiber integration and a more premium tactile experience.

“We are seeing notable growth in soft layers applications such as backsheet and topsheet components, as well as in specialized acquisition distribution layers (ADL/AQL), where air-through bonded nonwovens deliver enhanced comfort and performance,” executives say.

The new line is scheduled to begin operations during the fourth quarter of this year. It joins another Shalag North American manufacturing site in Oxford, NC, which was added in 2009 and expanded in 2016 when a third thermal bonding line was added to the site. Outside of North America, the company has a nonwovens operation in Israel and a films production site in Italy, which was acquired from Texsus.

Shalag’s nonwovens deliver a comprehensive range of benefits tailored to meet the evolving needs of the hygiene, healthcare and industrial markets, according to executives. These include exceptional softness, advanced liquid management, and a textile-like touch that enhances user comfort.

“Our materials also support sustainability goals through the use of eco-friendly fibers and green production practices,” says the company. “Additionally, we offer specialized performance features such as breathability, absorbency and the integration of functional additives—ensuring our products meet the highest standards of innovation, safety and environmental responsibility.”

Additionally, following the ‘less is more’ principle, Shalag takes advantage of the naturally lofty and infinitely customizable nature of air-through-bonded nonwovens, achieving excellent liquid handling performance at lower basis weights than other technologies. Shalag’s Softy Air and Cudly Air brands are designed to deliver superior softness and a premium feel and are perfectly suited as topsheets and outercovers for clients seeking to design a product that delivers the softest and smoothest tactile experience.

Plants: Israel, North Carolina, Italy (Texsus)
Processes: Air-through bonded, thermal bonded, stitchbonded, needlepunch
Major Markets: Baby diapers, feminine hygiene, adult incontinence, wipes

Shalag Nonwovens, a company that produces air-through bonded nonwovens with locations in Italy, North Carolina and Israel, reported revenue of approximately $200 million last year. This has remained stable for the past few years. The company is experiencing positive trends in the North American market, while facing high levels of competition in Europe and Israel, both from within their markets as well as the Far East, without any signs of significant growth. This has made price the main driving factor in customer purchasing decisions, behind performance, quality, customer service and reliability.

Despite these conditions, Shalag continues to pride itself on superior product performance with its air-through bonded carded nonwovens. CEO Ilan Pickman states, “Over the years, we have heavily invested in machinery technology and product design to produce premium and extremely soft materials, collecting a wealth of experience and a rich portfolio of high-quality, super-soft solutions. The recent trend that places softness as one of the most highly requested features has integrated perfectly with our preexisting philosophy, supporting our sales consequently.”

Shalag’s integration of Texsus, an Italian maker of films and air-through bonded nonwovens, which it acquired in 2019, has given the company a main hub for European production and machinery. Significant machinery and resource investment has been taking place to ensure each plant has a strong geographical presence to better meet the supply and delivery demands of clients in Europe, the Americas, and the Middle East. Additionally, each plant has the capability to back up the other plants, increasing global business redundancy.

According to executives, air-through bonding material continues to be a strategic technical nonwoven for the hygiene market, offering companies a premium material that provides both softness and visual appeal. In addition to acquisition and distribution layer (ADL) applications in hygiene items, Shalag is seeing increased demand for soft and visually appealing ATB materials for topsheet, outercovering, and frontal tape materials.

In addition to performance benefits, air-through bonding technology offers sustainability benefits including the absence of a binder or water in production; the use of recycled fibers as well as plant-based, biodegradable and natural fibers.

Additionally, following the ‘less is more’ principle, Shalag takes advantage of the naturally lofty and infinitely customizable nature of air-through-bonded nonwovens, achieving excellent liquid handling performance at lower basis weights than other technologies. Shalag’s Softy Air and Cudly Air brands are designed to deliver superior softness and a premium feel and are perfectly suited as topsheets and outercovers for clients seeking to design a product that delivers the softest and smoothest tactile experience. Additionally, the company can offer embossed and apertured material to enhance the functionality and visual aspects of the products.

Plants: Israel, North Carolina, Italy (Texsus)
Processes: Air through bonded, thermal bonded, stitchbonded, needlepunch
Major Markets: Baby diapers, feminine hygiene, adult incontinence, wipes

Higher sales prices compensated for lower volumes at Shalag Nonwovens in 2022. Overall nonwovens sales were able to increase slightly to reach $210 million compared to $200 million the year before.

“In 2022 we had to absorb some of the record high logistics and energy costs as results. The profit margin decreases significantly despite the increase in sales,” says CEO Ilan Pickman.

In 2019, Shalag acquired Texsus, an Italian maker of air through bonded nonwovens and laminated materials. The deal included sites in Italy and North Carolina. As it moves forward with the integration of the company, Shalag has renamed it Texsus Shalag EU, creating a European branch for the company. Along with the name change, the European division has undergone a total overhaul of the group’s branding including a new logo and website, consolidating the product portfolio and completing an organizational structure.

In the second quarter of 2023, Shalag started up production on a modern line in Italy allowing it to produce the same product range in all the regions. In addition, this investment has expanded its capabilities to make soft carded materials and sustainable solutions with a high efficiency level.

Meanwhile, Shalag has been impacted by softened demand in the EMEA hygiene market, particularly at its facilities in Israel. In response to these challenges the company has accelerated its efforts and its investments to develop solutions to the market’s demands for the short-, mid and long-term developments. So far, results of these efforts have included its ultrasoft carded Softy Air liners and sustainable solutions for all categories including an eco line featuring topsheets, liners for backsheet lamination, ADLs, frontal tapes and wipes and the “Less is More Line,” which is able to offer higher performance material at a lower environmental impact.

According to Pickman, Shalag has developed its sustainability policy based on 3P pillars—production (operations and supply chain), people and products. “We are defining clear environmental and social key performance indicators with the aim of reducing our footprint on the environment and improving our handprint on communities,” he says

Plants: Israel, North Carolina, Italy (Texsus)
Processes: Air through bonded, thermal bonded, stitchbonded, needlepunch
Major Markets: Baby diapers, feminine hygiene, adult incontinence, wipes

Sales of Shalag Group continue to benefit from the acquisition of Texsus as well as organic growth in North America. The company acquired the Italian maker of air through bonded nonwovens and laminated materials in late 2019. The deal included sites in Italy and North Carolina.

The integration process of Texsus and its manufacturing sites has progressed during 2020 and continues. The acquisition has enhanced the company’s global service capabilities and helped position Shalag as a world leader of air-through bonding technology and significantly contributed to its business performance.

With a current nonwovens capacity around 60,000 tons, Shalag is investing in strengthening its European site and market position with state-of-the-art technology updates and expanding its product portfolio. Its latest investment is an upgrade to an old line in Israel to offer modernized up-to-date technology.

According to CEO Ilan Pickman, the current global logistical and raw material crisis has made it difficult to characterize conditions in the global air through bonded markets.

Plants: Israel, North Carolina, Italy (Texsus)
Processes: Air through bonded, thermal bonded, stitchbonded, needlepunch
Major Markets: Baby diapers, feminine hygiene, adult incontinence, wipes

Sales increased significantly, reaching $200 million, on the heels of the acquisition of Texsus and organic growth in North America, for Shalag Group. The company acquired the Italian maker of air through bonded nonwovens and laminated materials in late 2019. The deal included sites in Italy and North Carolina.

“In general the integration process of Texsus has progressed during 2020 and continues in 2021. The Covid situation and restrictions have slowed down the process,” CEO Ilan Pickman says. “However, the consolidation of Texsus’ business enhanced the company’s global service capabilities and helped position Shalag as a world leader of air-through bonding technology and significantly contributed to our business performance.”

With a current nonwovens capacity around 60,000 tons, Shalag is investing in strengthening its European site and market position with state-of-the-art technology updates and expanding its product portfolio. Its latest investment is an upgrade to an old line in Israel to offer modernized up-to-date technology.

According to Pickman, the current global logistical and raw material crisis have made it difficult to characterize conditions in the global air through bonded markets.

“The industry is struggling with extremely high raw material and ocean freight costs. In addition the wipes supply chain stuck with high stock for a few months ahead. In this business environment, the customers are focusing on a cost saving solutions. Still, the demand for the development of premium materials continues and Shalag is very active in this trend.”

Plants: Israel, North Carolina, Italy (Texsus)
Processes: Air through bonded, thermal bonded, stitchbonded, needlepunch
Major Markets: Baby diapers, feminine hygiene, adult incontinence, wipes

As it continues the integration of Texsus Spa, a maker of air-through bonded nonwovens and other materials for hygiene products, Israel’s Shalag Group reports sales remained flat at $125 million in 2019. While the integration has been slowed down by the Covid-19 pandemic, the company expects the merged companies will enjoy many synergies as the No. 1 manufacturer of air through bonded technology in the world with a strong European brand, in Italy, and a global supply chain as well as cost savings opportunities, increased innovation capabilities and an expanded range of products on the market.

In addition to the Texsus site in Italy, Shalag had existing operations in North Carolina and Israel. The group is now able to make 60,000 tons of nonwovens per year.

The group’s most recent investment is an upgrade to an old line in Shamir, Israel, to offer modernized, up-to-date technology.

According to CEO Ilan Pickman, in general ATB growth is taking place mostly in emerging markets, following the trend in growth of the global hygiene market. Meanwhile in mature markets, ATB technology is benefitting from the need for softer products in coverstock and backsheet applications.

“The growth in Asia will continue and it looks that the Central Africa region will present a substantial growth in hygiene products in the next few years,” he says.

Plants: Israel, North Carolina, Italy (Texsus)
Processes: Air through bonded, thermal bonded, stitchbonded, needlepunch
Major Markets: Baby diapers, feminine hygiene, adult incontinence, wipes

In August, Israeli nonwovens producer Shalag Group said it had signed agreement to acquire 100% of the shares of Texsus S.P.A, a leading manufacturer of air-through bonded nonwovens and laminated products for the hygiene market. Based in Pistoia, Italy, Texsus will be operated as a subsidiary of Shalag Industries and will continue to be managed by Federico Micheloti and on the marketing side by Barbara Bulleri.

The acquisition expands Shalag Group presnence in the global air-through bonded nonwovens segment  with three  production sites in Israel, North Carolina and Italy with a production capacity close to 60,000 tons per year.

“We appreciate Texsus’ reputation in the market and believe that the high synergy between the companies will allow Shalag Group to provide its customers over the world with the best global services as well as  increased company innovation and technology capabilities,” says Ilan Pickman, CEO.

Shalag’s most recent organic investment included a third production line added in 2016 to its North Carolina site. The new line brought the site’s capacity to 18,000 tons at a cost of $20 million. Also at this site, Shalag has added a second spooling line. In Italy, Israel the company converted an old calendar line into a modern, state-of-the-art air through bonded line. This line reached commercialization in late 2018.

These investments will allow Shalag to continue its growth in baby diapers, feminine hygiene, adult incontinence and cleaning and industry wipes markets both in Europe and North America.

Plants: Israel, North Carolina
Processes: Air through bonded, thermal bonded, stitchbonded, needlepunch
Major Markets: Baby diapers, feminine hygiene, adult incontinence, wipes

Sales increased slightly from $120 million to $125 million at Israel-based air-through bonding specialist Shalag Nonwovens. The company operates facilities in Oxford, NC, and Shamir, Israel, and mainly targets the hygiene market.

“The advantages of air through bonded products are loftiness, softness and high liquid management performances in hygiene applications,” says CEO Ilan Pickman. “In addition air through bonded products can be produced in blends of a few different fibers and polymers, providing product uniqueness and cost advantages.

Shalag recently added a third production line to its North Carolina site, bringing the site’s capacity to 18,000 tons at a cost of $20 million. Also at this site, Shalag is adding a second spooling line set to start operation this month. Meanwhile, in Israel the company converted an old calender line into a modern, state-of-the-art air through bonded line. This line is in the final stage of commercialization, says Pickman.

These investments will allow Shalag to continue its growth in baby diapers, feminine hygiene, adult incontinence and cleaning and industry wipes markets both in Europe and North America.

Plants: Israel, North Carolina
Processes: Air through bonded, thermal bonded, stitch bonded, needlepunch
Major Markets: Baby diapers, feminine hygiene, adult incontinence, wipes

“Sales were challenged in 2016 due to lower raw materials and market prices and unfavorable currency exchange rates.,” says CEO Ilan Pickman.

Shalag Nonwovens currently operates three production locations: in Shamir, Israel, with thermal bonded and air through bonded nonwovens; in Oxford, NC, with thermal bonded and air through bonded technologies and in Urim, Israel, with needlepunch and stitch bonded technology. Total capacity is about 45,000 tons.

Shalag’s most recent investment is a third production line in Oxford, NC. The $20 million investment brought the site’s capacity to 18,000 tons. With this line successfully started up, Shalag has turned its attention to Shamir, Israel, where it is upgrading an old calendar bonded line with new air through bonding technology. The new line will restart in May 2018.

“During the last few years we have been focusing on growing with air through bonding technology,” says Pickman.  “We are currently working on our next strategic growth plan.”

Key markets for Shalag include baby diapers, feminine hygiene items, adult incontinence products and cleaning and industrial wipes. Sales are split between Europe and the North America, but the company is also looking toward emerging markets for growth.

Plants: Israel, North Carolina
Processes: Air through bonded, thermal bonded, stitchbonded, needlepunch

New to this year’s report is Israel’s Shalag Nonwovens, a 30-year nonwovens industry veteran. The manufacturer of air-through bonded, calendar bonded, stitchbonded and needlepunch nonwovens, reported sales were flat between 2014 and 2015 at $130 million.

Shalag currently operates three production locations—one in Shamir, Israel with thermal bonded and air through bonded nonwovens; one in Urim, Israel with needlepunch and stitch bonded technologies and one in Oxford, NC with thermal bonded and air through bonded technologies. Total capacity is about 45,000 tons.

In May 2016, Shalag started up a third production line at its Oxford, NC site. This $20 million investment brought the site’s capacity to 18,000 tons.

Key markets for Shalag include baby diapers, feminine hygiene items, adult incontinence products and cleaning and industrial wipes. Sales are split between Europe and North America. “We are focusing in both regions, however we are also looking for growth in the developing regions,” says Ilan Pikman.

Growth will also come from new product development, unique products, global production capabilities and customer service.