Hof/Saale, Germany
www.tenowo.com
2024 Nonwovens Sales: $141 million

Plant Locations
Hof/Saale, Germany; Huzhou City, China; Lincolnton, NC: Haiphong City, Vietnam;  Fizzonasco di Pieve, Italy

Key Personnel
Salvatore Musso, CEO Tenowo group, Dr. Elmar Wind, COO Tenowo group, Detlev Käppel, global sales director automotive & industry

Plants
Hof/Saale, Reichenbach, Mittweida,; Germany; Fizzonasco die Pieve, Italy; Lincolnton, NC/USA; Huzhou City, PRC, Haiphong City, VN

Processes
Drylaid, thermal bonded, needle punched, saturate bonded, stitchbonded, spunlace

Brand Names
Variopoint, Unipoint, Unisoft, Zetafelt, Zetastitch, Zetafil, Zetawatt, Florbond, Zetabond, Zetajet, Zetatherm, Zetamold, Zetacomp, Zetacoustic, Zetabolt, Zetaknit, Maliwatt, Malivlies, Kunit, Multiknit, Climaknit, Sustaknit, Sustainaknit, eswegee, Bassopoint

Major Markets
Acoustics, automotive, filtration, roofing, industrial, composites, interlinings, medical, healthcare, protection, consumer goods

Tenowo’s sales in 2024 reached $141 million, slightly lower than the previous year and below the company’s own expectations. This decline was largely attributed to challenges in the automotives market as well as the global supply chain beginning the second half other year. This could not offset a stronger first half or satisfactory growth rates in other key markets at Tenowo.

“The transformation in the automotive industry continues and requires full attention to new strategies such as innovation push for products, adjusted customer needs and geographic proximity,” says global sales director Detlev Kappel. “In Europe almost all OEMs are adjusting their production capacities to comply to current market demands.”

This includes a shift toward electronic vehicles, which has slowed as many OEMs have delayed these platforms and extended combustion engine car model cycles.

For now, it seems to be unlikely that EU car production will recover back to its numbers before Covid-19. However, Tenowo, with its global manufacturing footprint, is prepared either way to provide the best service and product value to its customers.

From a technology standpoint, the group’s key manufacturing platforms, needlepunched, binder bonded (UD and x-laid) and thermally bonded nonwovens, saw strength in the consumer markets and static demand in filtration, according to CEO Salvatore Musso.

Meanwhile, demand for spunlaced nonwovens remained stable for the U.S. but below expectations in the Europe. In 2024, Tenowo began upgrading its procedures and changing manufacturing equipment within its existing lines to better focus on the demands of new customers and new applications seen during recent years.

Tenowo’s stitchbonded nonwovens business, which now has operations in Europe, the U.S., Huzhou, China and Haiphong City, Vietnam, following an investment earlier this year, remains strong.

Within this technology, the group’s sustainable product offering—fully recyclable nonwovens for car seats—have been chosen by existing and new OEMs as a replacement for foams and other bulky materials because they offer the advantages of less VOC and good air permeability.

These sustainable alternatives have been particularly popular in the EU where sustainability and recyclability are playing an important role in influencing customer decisions. The Asian market continues to focus on cost over sustainability.

“Speaking of Asia, Tenowo is bucking the trend within a highly competitive automotive environment where overall OEM manufacturing utilization versus capacity in China is at around 50%,” adds Musso. “This indicates the fact that not all of these manufacturers as well as companies in the supply chain will survive in the future. Tenowo diversified its local portfolio across different applications such as seating, CIPP (cured in place pipe), wire harness, consumer goods and for PPE (personal protection equipment).”

Another important market for Tenowo is healthcare, which has continued its strong growth path by executing its strategy to develop and commercialize an innovative portfolio of medical devices and customized solutions for the advanced wound care market.

Tenowo’s U.S. subsidiary in Lincolnton, NC, has allowed the company to defend itself against ongoing tariff disruptions. The ability to produce needlepunched, saturate bonded (MD and CL) and stitchbonded nonwovens within the U.S. makes Tenowo less exposed to the current developments and allows it offer a stable and flexible supply to its customers. “Although the automotive industry is still behind record sales before Covid like EU, Tenowo USA is recognized as a capable and innovative nonwoven supplier and partner,” Kappel says.

In new product development, Tenowo’s composite nonwovens, 100% carbon nonwovens made of recycled carbon fibers next to other solutions made further progress in penetrating the market. The company is working with strategic partners and OEMs worldwide on several applications such as for structural parts, underbody solutions or even as a security barrier for battery cells in case of a thermal event. Beside additional technical advantages, the low CO2 footprint of these products compared to traditional carbon textiles support its customers to reach emission targets and cost savings for their finished products at the same time.

Plants: Hof/Saale, Reichenbach, Mittweida, Germany; Fizzonasco die Pieve, Italy; Lincolnton, NC/USA; Huzhou City, PRC, San Luis Potosí, Mexico
Processes: Drylaid, thermal bonded, needle punched, saturate bonded, stitchbonded, spunlace, highloft
Brand Names: Variopoint, Unipoint, Unisoft, Zetafelt, Zetastitch, Zetafil, Zetawatt, Zetaloft, Florbond, Zetabond, Zetajet, Zetatherm, Zetamold, Zetacomp, Zetacoustic, Zetabolt, Zetaknit, Maliwatt, Malivlies, Kunit, Multiknit, Climaknit, Sustaknit, Sustainaknit, eswegee, Bassopoint
Major Markets: Acoustics, automotive, filtration, roofing, industrial, composites, interlinings, medical, healthcare, consumer goods

With most of its business units globally reporting recovery during 2023, Tenowo Group was able to see some sales growth during the year as revenues reached $150 million, compared to $130 million in 2022. However, certain segments of the automotive segment, one of the company’s key market areas, continue to test the company.

“Changes in the automotive industry and disruption in many other business areas continue to pose challenges for future growth,” says Detlev Käppel, global sales manager. “Moreover, the transformation toward e-mobility in Germany has been delayed by some political decisions to cut subsidies that change from day to another. Rising energy costs and inflation add other difficulties when it comes to maintaining profitable growth.”

Tenowo Hof, a German manufacturer of needlepunched, binder bonded and thermal bonded nonwovens, benefitted from increased demand for automobiles as well as slow but steady recovery in markets like interlinings and filtration.

Our consumer goods business unit is constantly growing with optimistic prospects for the following years,” says CEO Salvatore Musso.

Another strong business for Tenowo in recent years is stitchbonded nonwovens, which it is now capable of making in Europe, the U.S. and China, where it completed an investment in Huzhou earlier this year. This global footprint has made Tenowo’s stitchbond a select supplier for OEMs in the automotive industry. Most recently, Volvo and Skoda have begun using these materials in their cars.

“Our sustainable product group for car seats and other industrial applications, called Multiknit, Sustainaknit, Sustaknit and Climaknit, gained lots of interest from both our existing and new customers,” Käppel says. “The fully recyclable nonwovens can replace foam and other ‘bulky’ materials with the advantages of no VOC, good air permeability and much more.”

Tenowo is currently in the process of adding a stitchbonding operation in Vietnam, which will come onstream by the end of the year, to target specific applications for automotive applications. This investment continues Tenowo’s efforts to be closer to its customers.

In North America, Tenowo operates sites in North Carolina and Mexico. The North Carolina facility, in Lincolnton, NC, offers OEMs and tier one suppliers to the automotive industry local service and support, while the Mexican site has benefited from increased demand for acoustics and interior applications in the automotive market.

Additionally, the Mexican site recently added a composite nonwovens unit able to make 100% carbon nonwovens from recycled fibers for several automotive-related applications. Besides additional technical advantages, the low CO2 footprint of these products compared to traditional carbon textiles helps customers reach emission targets for their finished products.

Plants: Hof/Saale, Reichenbach, Mittweida, Germany; Fizzonasco die Pieve, Italy; Lincolnton, NC/USA; Huzhou City, China
Processes: Drylaid, thermal bonded, needlepunched, saturate bonded, stitchbonded, spunlace, highloft
Brand Names: Variopoint, Unipoint, Unisoft, Zetafelt, Zetastitch, Zetafil, Zetawatt, Zetaloft, Florbond, Zetabond, Zetajet, Zetatherm, Zetamold, Zetacomp, Zetacoustic, Zetabolt, Zetaknit, Maliwatt, Malivlies, Kunit, Multiknit, Eswegee, Bassopoint
Major Markets: Acoustics, automotive, filtration, roofing, industrial, composites, interlinings, medical, healthcare, consumer goods

Tenowo continues to ramp up capacity of its new high loft product-group, Zetaloft+, which has been very successful and attracted a lot of new customers. The company expects the new line should be running at full capacity soon with a number of new sustainable products targeting different market segments like automotive (exterior and interior), apparel, furniture and the composite industry. Products in the line show similar behavior to foams, save costs and are the perfect choice for customers which follow sustainability ideas.

Tenowo operates three plants in Germany—in Hof, Rechenbach and Mittweida, where it serves markets like automotive, roofing and industrial filtration. In recent years, having a diversity of market segments and product formats has helped Tenowo compensate for challenges in some markets with success in others.

In Mittweida, where Tenowo houses its European stitchbond business, capacity continues to be nearly fully utilized. The sustainable product group for car seats and other industrial applications, called “Multiknit and Climaknit,” gained considerable interest from both its existing and new customers. The fully recyclable nonwovens can replace foam and other “bulky” materials with the advantages of no  VOC, good air permeability and much more.

Elsewhere in Europe, Tenowo operates a facility in Milan, Italy, which was acquired in 2019 as a way to expand its role in the medical market. The company repositioned its activities with a clear focus on medical devices developed and manufactured in-house and marketed both domestically and on an international level. Tenowo’s portfolio covers wound care applications, absorbent mats, tracheostomy pads, undercast paddings, just to name a few.

Plants: Hof/Saale, Reichenbach, Mittweida, Germany; Fizzonasco die Pieve, Italy; Lincolnton, NC/USA; Huzhou City, PRC
Processes: Drylaid, thermal bonded, needlepunched, saturate bonded, stitchbonded, spunlace, highloft
Brand Names: Variopoint, Unipoint, Unisoft, Zetafelt, Zetastitch, Zetafil, Zetawatt, Zetaloft, Florbond, Zetabond, Zetajet, Zetatherm, Zetamold, Zetacomp, Zetacoustic, Zetabolt, Zetaknit, Maliwatt, Malivlies, Kunit, Multiknit, Eswegee, Bassopoint
Major Markets: Acoustics, automotive, filtration, roofing, industrial, composites, interlinings, medical, healthcare, consumer goods

Tenowo’s sales in 2021 were still influenced by the Covid-19 pandemic and ongoing supply chain interruptions. Especially in the first quarter 2021, the company reports a nice upturn in sales and production for all locations. The worldwide shortage of semiconductors, which began later in the year, slowed down orders in the automotive market.

Additional challenges included difficulties in the procurement of fibers and chemicals, inflation in all raw material groups and supply chain issues. “Our entire team worked hard to deal with all these challenges to minimize supply interruptions for our customers,” says COO Detlev Käppel. “We are very proud for all the achievements we reached together to guide Tenowo through this difficult environment.”

These challenges also led to a slight delay in the group’s new high loft product-group, Zetaloft+, which has been very successful and attracted a lot of new customers. Käppel says he expects to run this line at full capacity soon with a number of new sustainable products targeting different market segments like automotive (exterior and interior), apparel, furniture and the composite industry.

“The products show similar behavior to foams, save costs and are the perfect choice for customers which follow sustainability ideas,” he adds.

Tenowo operates three plants in Germany—in Hof, Rechenbach and Mittweida. In Hof, Tenowo was affected by a flooding event in June 2021 when several machines were damaged. The team was able to fully restore delivery and performance in the weeks and months following the flood and was able to minimize the impact on customers. Meanwhile, Reichenbach ran satisfactorily 2021, despite the influence on its orders because of the semiconductor shortage. Sales in other market segments such as roofing, industrial filtration or others helped it to compensate. In Mittweida, where Tenowo houses its European stitchbond business, capacity was fully utilized throughout most of the year with some variations due to the automotive crisis. The sustainable product group for car seats and other industrial applications, called “Multiknit and Climaknit,” gained considerable interest from both its existing and new customers. The fully recyclable nonwovens can replace foam and other “bulky” materials with the advantages of no VOC, good air permeability and much more, according to Käppel.

Elsewhere in Europe, Tenowo operates a facility in Milan, Italy, which was acquired in 2019 as a way to expand its role in the medical market. “We repositioned our activities with a clear focus on medical devices developed and manufactured in-house and marketed both domestically and on an international level,” says CEO Salvatore Musso. “Our portfolio covers wound care applications, absorbent mats, tracheostomy pads, undercast paddings, just to name a few.”

Plants: Hof/Saale, Reichenbach, Mittweida,; Germany; Resintex, Italy; Lincolnton, NC/USA; Huzhou City, PRC
Processes: Drylaid, thermal bonded, needlepunched, saturate bonded, stitchbonded, spunlace
Brand Names: Variopoint, Unipoint, Unisoft, Zetafelt, Zetastitch, Zetafil, Zetawatt, Zetaloft, Florbond, Zetabond, Zetajet, Zetatherm, Zetamold, Zetacomp, Zetacoustic, Zetabolt, Zetaknit, Maliwatt, Malivlies, Kunit, Multiknit, eswegee, Bassopoint
Major Markets: Acoustics, automotive, filtration, roofing, industrial, composites, interlinings, medical, healthcare

Tenowo’s sales in 2020 were definitely influenced by the Covid-19 pandemic, particularly in the second quarter when global shutdowns led to a global demand in the automotive market. “At the beginning of the third quarter, we realized slight signals of recovery which resulted into a strong finish until the reminder of the year,” says Harald Stini, CEO.

The launch of Tenowo’s new High-loft product-group, called “Zetaloft+”, was slightly postponed due to the crisis. However, the company now has several products in development in market segments including  automotives (exterior+interior), apparel, furniture and the composite industry.

“The products show similar behavior to foams and are the perfect choice for customers which follow up sustainability ideas,” says global sales director Detlev Käppel.

Meanwhile, at Tenowo’s  spunlace plant in Reichenbach, Germany, as well as at its Chinese facility, the company developed some new products during the pandemic crisis which were used for masks or other medical end uses, but the company’s core focus for the future will remain in industrial markets.

Likewise, the company’s U.S. arm, Tenowo Inc. Lincolnton, NC, saw a special year in 2020. “Off the cuff we developed a completely new material which was used for medical gowns in order to fight the Covid-19 pandemic during the crises,” says Käppel. “Especially during the first eight months we were lucky to fill up our entire capacity which was normally dedicated for automotive.”

Key Personnel: Dr. Harald Stini, managing director; Detlev Käppel, global sales director technical nonwovens and managing director, Tenowo Huzhou; Chris Peart, president, Tenowo Inc. NC/USA
Plants: Hof/Saale, Germany; Reichenbach, Germany, Mittweida, Germany; Lincolnton, NC; Huzhou City, PRC
Processes: Drylaid, thermal bonded, needlepunched, saturate bonded, stitchbonded, spunlace
Brand Names: Variopoint, Unipoint, Unisoft, Zetafelt, Zetastitch, Zetafil, Zetawatt, Zetaloft, Florbond, Zetabond, Zetajet, Zetatherm, Zetamold, Zetacarb, Zetacoustic, Maliwatt, Malivlies, Kunit, Multiknit, eswegee, Bassopoint
Major Markets: Acoustics, automotive, filtration, roofing, industrial, composites, interlinings, medical

Sales increased slightly to $151 million for Tenowo in 2019 thanks to a strong start to the year. However by late 2019, there were signs that a slowdown was coming in the global automotives market, according to sales director Detlev Käppel.

“In 2019, we did okay but there were signs that we weren’t going to have another record year in China, Europe or the U.S.,” he adds. “There were not major problems but then the Covid-19 crisis exacerbated things in 2020.”

The shutdown of automotive manufactures globally meant that 85% of Tenowo’s automotives business globally shut down. “April was the worst month we have ever seen in our history. We had to adapt our capacity here and there.”

Tenowo’s U.S. operation, located in Lincolnton, NC, was particularly able to react quickly and effectively to the coronavirus. The division was able to take materials normally applied to the automotives market and make materials for isolation gowns for medical gowns.

“This helped us get through the worst part of the shutdown,” says Chris Peart, president and CEO of Tenowo Inc.

Peart says he credits the sales and development teams who were able to create a new product and get it out the door within two to three weeks, with very little prior knowledge of the market. “The hope is that the market can become a permanent one for us,” he adds.

Prior to the coronavirus pandemic, Tenowo’s four sites in Germany were running well. The company had added a stitch bonding line in Moschendorf, which supplements Tenowo’s Mittweida site which was expanded in 2018 and sold out nearly instantly. Also in Moschendorf, the company added a needlepunch and high loft nonwovens line. The needlepunch line targets medical applications while the high loft line make Zetaloft Plus voluminous nonwovens for automotives and industrial applications. “We can run products from 200-1400 gsm and up to 700 mm thick,” Käppel says. “These products are quite new for us but we had some requirements for them.”

Meanwhile, Tenowo’s Reichenbach site ran 24 hours a day seven days a week continuously last year and it continues to run satisfactorily. Tenowo has also added a Center of Excellence for stitch bonding technology at the site which is the only private center of its kind in Europe.

“I am not aware of any other private company running a center of excellence for stitchbonding,” Käppel adds. “This was a strategic goal for us because we are one of the biggest manufacturers of this and there is a lot of room for new products and applications.”

In October 2019, Tenowo expanded its role in the medical market through the acquisition of Resintex, a Milan, Italy-based medical company with a focus on skin care applications. “Resintex has been in medical for many years but has been restricted to the Italian market. We are currently exploring the possibility of extending business on a more European basis,” he says.

Plants: Hof/Saale, Germany; Reichenbach, Germany, Mittweida, Germany; Lincolnton, NC; Huzhou City, PRC
Processes: Drylaid, thermal bonded, needlepunched, saturate bonded, stitchbonded, spunlace
Brand Names: Variopoint, Unipoint, Unisoft, Zetafelt, Zetastitch, Zetafil, Zetawatt, Zetaloft, Florbond, Zetabond, Zetajet, Zetatherm, Zetamold, Zetacarb, Zetacoustic, Maliwatt, Malivlies, Kunit, Multiknit, eswegee, Bassopoint
Major Markets: Acoustics, automotive, filtration, roofing, industrial, composites, interlinings, medical

The exit from an Indian-based joint venture meant a decrease in overall sales for Tenowo, but executives at the Germany-based maker of nonwovens for automotives and other technical applications report that existing businesses saw a 6% increase in sales in 2018.

In April 2018, Tenowo announced it was selling its 49% stake in Supreme Nonwovens to its Indian co-shareholders. Tenowo had partnered with Supreme, a family-owned company with several nonwovens operations in India, since 2006.

“Ten years ago there was some optimism that the automotives industry in India would grow quickly but we are still seeing it in the range of two to three million units per year,” says Detlev Käppel, sales director. “We decided that we would rather focus our resources and our money to China and other places in Asia.”

Speaking of Asia after decades of continuous growth, China saw some challenges in late 2018, which have continued into 2019. “Last year we were seeing record production out of China but in November and December we began seeing some signs it wasn’t going to keep up,” Käppel adds. “Some OEMs in north of China shut down their plants for several weeks and some lowered their production significantly.”

With capacity utilization less than 50%, the Chinese market is recovering from a few years of aggressive investment but the market remains the largest market in the world, by far, with 23-24 million cars made there annually. As growth slows in this market, however, Tenowo is looking to other Asia markets like Vietnam, Cambodia and Japan to absorb its Chinese capacity.

Back in Europe, where Tenowo operates four sites in Germany, the company’s stitchbonding business has been performing extremely well thanks to growth of this material in the automotives market. In fact, the strength of stitchbonding led Tenowo to construct site no. 4 in Moschendorf where it houses a new stitchbonding line. This new capacity supplements output from Tenowo’s Mittweida site which was expanded in early 2018 and sold out nearly instantly.

Meanwhile, in Reichenbach and Hof, Tenowo has relatively new spunlace and needlepunch lines, which were added during a company-wide expansion effort a few years ago. While details have not been released, additional capacity is expected to come onstream later this year and target markets outside of medical.

In October, the company made significant steps toward this goal by purchasing Reintex Industriale, a Milan-based nonwovens manufacturing specialized in the medical market. The company is on the smaller side with annual sale around €3.5 million but managing director Harald Stini feels Tenowo’s international distribution network will be able to grow revenues quickly.

“We have been dependent on the cycles of the automotives market for years and we have been trying to establish a presence in new markets,” he says. “We have seen medical as a good fit for us and therefore we are looking for organic growth but also for companies that fit with us.”

Prior to the acquisition, Tenowo had already operated a small medical business in Hof and executives feel the Resintex products fit nicely with its current business.

“We think we can develop the segment further. The idea is to have some organic growth but if we see other companies that could fit into this strategy, we will be interested,” Stini says.

Back in the U.S., Tenowo’s North American operation in Lincolnton, NC, was expanded with the construction of a 70,000 square meter building in 2017. The building houses Tenowo’s Multiknit technology which until then had only been made in Germany. Multiknit technology is primarily used in automotive seating applications.

According to Peart, the U.S. operation enjoyed a successful year despite volatility in the North American automotives market, particularly in passenger vehicles. Increased automobile production in Mexico has created demand for Tenowo’s Zetafelt and Zetabond products in that region. As a result, Tenowo opened a sales and warehousing facility in San Luis Potosí in 2018 in order to facilitate providing customers with localized service.

Plants: Hof/Saale, Germany; Reichenbach, Germany, Mittweida, Germany; Lincolnton, NC; Huzhou City, PRC
Processes: Drylaid, thermal bonded, needlepunched, saturate bonded, stitchbonded, spunlace
Brand Names: Variopoint, Unipoint, Unisoft, Zetafelt, Zetastitch, Zetafil, Zetawatt, Zetaloft, Florbond, Zetabond, Zetajet, Zetatherm, Zetamold, Zetacarb, Zetacoustic, Maliwatt, Malivlies, Kunit, Multiknit, eswegee, Bassopoint
Major Markets: Acoustics, automotive, filtration, roofing, industrial, composites, interlinings, medical

The year 2017 was for Tenowo one of both challenges and success. The company’s European business continued to be strong and nearly all of its sites were operating at full capacity. “Although we expected some slowdown in automotive segment due to the recent OEM ‘diesel affairs,’ at the end it turned out not to affect our sales in this segment,” says managing director Harald Stini. “Besides automotive we were able to succeed in our diversification strategy, meaning segments like building/construction, filtration, composites, medical and others were growing and the dependence on automotive decreased to a certain extent.”

Tenowo’s three German sites—in Hof, Reichenbach and Mittweida—continue to perform well. In Mittweida, new capacity for stitchbonded nonwovens was sold out nearly immediately and additional capacity will come onstream later this year. The company is also investing in new office space and a competence center for stitchbonded nonwovens in Mittweida, which will come onstream next year.

Meanwhile, in Reichenbach and Hof, Tenowo added a spunlace line and a needlepunch line, respectively, during a company-wide investment program in 2014. Now, the company is reviewing the possibility of added equipment and capacity featuring two nonwovens technologies at the sites.

In China, Tenowo Huzhou New Materials reported another year of growth, both in sales, volumes and market diversification. This operation is also running to capacity and the company is now determining its next step in China. “We were able to extend our marketshare in domestic China in automotive with existing global customers as well as local Tier1/OEMs,” says global sales director Detlev Käppel. “Moreover our export business was extended to India, Cambodia, Southeast Asia and Japan. Our manufacturing hub in China provides a great platform for further growth. The main market segments in automotive are NVH, interior trim, high-loft insulation, wire harnessing and seating applications.”

Tenowo’s interlining business, which is served from sites in Germany and China, remains stable and is still an important segment for the company. The included product group “Zetafil brands” for the semi luxury food and packaging industry developed nicely and the company expects further growth in the coming years.

Tenowo’s North American operation in Lincolnton, NC, was expanded with the construction of a 70,000 square meter building in 2017. The building houses Tenowo’s Multiknit technology which until then had only been made in Germany. Multiknit technology is primarily used in automotive seating applications.

“The installation and startup of the Multiknit manufacturing line has added a new dimension to Tenowo Inc.’s product portfolio,” says Chris Peart, president, Tenowo Inc. NC/USA. “As a product line, Multiknit is expected to open access to new markets and grow at strong double digit rates over the next five years. Overall, the future of Tenowo Inc. is very positive and further economic, technical and human resource growth is expected.”

According to Peart, the U.S. operation enjoyed a successful year despite volatility in the North American automotives market, particularly in passenger vehicles. Increased automobile production in Mexico has created demand for Tenowo’s Zetafelt and Zetabond products in that region. As a result, Tenowo opened a sales and warehousing facility in San Luis Potosí in 2018 in order to facilitate providing customers with localized service.

In other news, in April, Tenowo announced it would sell its 49% stake in Supreme Nonwoven Industries Pvt. Ltd. to its Indian co-shareholders.

Supreme Nonwoven Industries Pvt. Ltd. is based in Mumbai and active in the field of the production of nonwoven fabrics. The sale of the investment is a consequence of the continuing strategic focusing of Tenowo GmbH and will have no impact on the balance sheet equity of Hoftex Group. The parties have agreed not to disclose the purchase price and the transaction is expected to be completed within 24 months after the conclusion of the purchase agreement.

Tenowo entered the agreement in 2006 with Supreme, a family-owned company with nonwovens several nonwovens operations in India. The agreement reportedly encompassed both industrial and interlining applications.

Plants: Hof/Saale, Germany; Reichenbach, Germany, Mittweida, Germany; Lincolnton, NC, U.S., Huzhou City, China
Processes: Drylaid, thermal bonded, needlepunch, saturate bonded, stitch bonded, spunlace
Brand Names: Variopoint, Unipoint, Unisoft, Zetafelt, Zetastitch, Zetafil, Zetawatt, Zetaloft, Florbond, Zetabond, Zetajet, Zetatherm, Zetamold, Zetastitch-C, Maliwatt, Malivlies, Kunit, Multiknit, eswegee, Bassopoint
Major Markets: Acoustics, automotive, filtration, roofing, industrial, composites, interlinings

Expansion continues to be the top strategy for German nonwovens producer Tenowo. Between 2014 and 2015, the company added capacity at its existing site in North Carolina, built a brand new facility near Shanghai, China, added a new spunlace line in Reichenbach, Germany, as well as a new needlepunch line in Hof. In total, these investments represented about €60 million in spending for the company.

“Everything went to plan,” says managing director Harald Stini. “China took a little bit longer than expected because of a lot of special requirements but it was an absolute must to enter that market.”

In China, Tenowo currently makes four key brands—Zetabond X, Zetabond UD, Zetaflet and Zetaloft. The facility houses proprietary technology combining needlepunch and chemical bonding which mainly targets the China automotive market, which is Tenowo’s most important market globally.

“Having a local supply base helps to minimize risk management,” Stini adds. “We can guarantee that the facilities provide a certain quality.”

A supplier to many of the key European automotives producers, Tenowo originally entered the Chinese market to serve its existing customers as they expanded into Asia but local car makers are becoming increasingly important.

Back in the U.S., Tenowo finished work on a plant expansion in Lincolnton, NC, in March. Tenowo added a 70,000 square foot building to house its unique Multiknit technology, which until then had only been made in Germany. Multiknit technology is primarily used in automotive seating applications where they offer advantages over conventional products including enhanced breathability and improved temperature regulation.

“Our parent company, Hoftex Group AG, continues to invest in the site and support our growth. The board of directors of Tenowo Inc. and our ownership believe in the team here in Lincolnton and that is a powerful motivator. They also believe in the institutions of this area and their ability to support us,” states Chris Peart, president and CEO of Tenowo, Inc. “In particular, the support of the Lincoln Economic Development Association (LEDA), Lincoln County and the state of North Carolina was critical to moving forward.”

Stini adds: “This was a flagship project for Tenowo. It was a great example of an international group of people with different skills working as a team to complete a project on time, within budget and with the highest quality standards. The team and the project reflect our corporate values and guiding principles: trust, fairness, collaboration and cooperation.”

The Multiknit expansion represented an investment of $10 million and is the fourth at this location since 2009. Overall, Tenowo has invested $20 million in the expansion of existing production capabilities and the installation of new manufacturing technologies at the site.

The fabric is described as a proprietary nonwoven developed in Easter Germany right after World War II and is used for automotives, foam replacement and wire harnessing. This is the first time it is available the U.S.

The new line started up in December 2016 and Tenowo is now in the process of looking into another expansion in the beginning of next year.

The site in North Carolina can hold up to three more lines, if needed.

In Germany, Tenowo now operates two spunlace lines—both targeting industrial applications, in Reichenbach, as well as a needlepunch line in Hof, which has allowed it to target markets like roofing and filtration, which are growing in importance to the company.

All of these investments represent how important nonwovens applications have become to the company, which finds its roots in apparel. Moving forward growth will continue in industrial nonwovens markets like automotives, filtration, construction and composites, Stini says.

“Five years ago we launched a strategic plan and an investment program and we stuck to it,” he says. “Nonwovens are gradually increasing our revenue and this will continue as investments continue to come onstream.”

Plants: Hof/Saale, Germany; Reichenbach, Germany, Mittweida, Germany; Lincolnton, NC, U.S., Huzhou City, China
Processes: Drylaid, thermal bonded, needlepunched, saturate bonded, stitchbonded, spunlace
Brand Names: Variopoint, Unipoint, Unisoft, Zetafelt, Zetastitch, Zetafil, Zetawatt, Zetaloft, Florbond, Zetabond, Zetajet, Zetatherm, Zetamold, Zetastitch-C, Maliwatt, Malivlies, Kunit, Multiknit, eswegee, Bassopoint
Major Markets: Acoustics, automotive, filtration, roofing, industrial, composites, interlinings

Reporting another successful year was Germany-based Tenowo whose sales reached $180 million in 2015 thanks to strong performances from its sites across the globe. The company is in the midst of an ambitious expansion plan that will impact its operations in Germany, the U.S. and China, where a new site near Shanghai, China was completed in 2014. So far, these investments have helped propel Tenowo’s sales in  2014 and 2015 and executives expect this growth to continue as these technical-minded investments continue to bear fruit.

In China, at a site completed in June 2014, Tenowo is making four of its key market brands—Zetabond X, Zetabond UD, Zetafelt and Zetaloft. The facility, which represents a reported $15 million investment, features proprietary technology that combines needlepunch and chemical bonding and will mainly target the Chinese automotive market where more and more manufacturers are looking for local sourcing options, but customers in industrial and interlining markets will also benefit, according to Detlev Käppel, global sales director of technical nonwovens.

Meanwhile, back in Germany, Tenowo has added a new spunlace line—its second—in Reichenbach. Unlike most spunlace manufacturers, Tenowo has avoided wipes and instead has focused on specific industrial applications such as roofing, filtration, automotives and medical.

Elsewhere in Germany, Tenowo has added a new needlepunch line in Hof, which has allowed it to develop a number of new products for roofing and filtration markets, while in Mittweida, the group has increased capacity of its Maliwatt and Multiknit products for the industrial segments. The stitchbond products are used as interior facing applications, foam replacement in seat components, carrier substrates for wire harnessing and other markets. Dr. Harald Stini, managing director, says additional investments in this arm of the business will be made in 2016.

In North America, Tenowo’s operation in Lincolnton, NC remains the leading supplier of thermal and acoustical components for the North American automotives industry. To continue growth in North America, Tenowo has added a new powder coating line as well as other investment measures in Lincolnton.  The total costs of this investment plan will be about €50 million when all is said and done.

Meanwhile, the other side of Tenowo’s business, apparel, has decreased in scope in recent years due to competition from China. The business, which once dominated sales, now only represents about 10% of sales, but executives said it is a steady business. Tenowo’s strengths are its ability to get to market quickly and offer specialty materials.

Plants: Hof/Saale, Germany; Reichenbach, Germany, Mittweida, Germany; Lincolnton, NC, U.S., Huzhou City, China
Processes: Drylaid, thermal bonded, needlepunched, saturate bonded, stitchbonded, spunlace
Brand Names: Variopoint, Unipoint, Unisoft, Zetafelt, Zetastitch, Zetafil, Zetawatt, Zetaloft, Florbond, Zetabond, Zetajet, Zetatherm, Zetamold, Zetastitch-C, Maliwatt, Malivlies, Kunit, Multiknit, eswegee, Bassopoint

Major Markets: Acoustics, automotive, filtration, roofing, industrial, composites, interlinings

Reporting another successful year was Germany-based Tenowo whose sales reached $172 million in 2014 thanks to strong performances from its sites across the globe. The company is in the midst of an ambitious expansion plan that will impact its operations in Germany, the U.S. and China, where a new site near Shanghai, China was completed in 2014. So far, these investments have helped propel Tenowo’s sales more than 10% in 2014 and executives expect this growth to continue as these technical-minded investments continue to bear fruit.

In China, at a site completed in June 2014, Tenowo is making four of its key market brands—Zetabond X, Zetabond UD, Zetafelt and Zetaloft. The facility, which represents a reported $15 million investment, features proprietary technology that combines needlepunch and chemical bonding and will mainly target the Chinese automotive market where more and more manufacturers are looking for local sourcing options, but customers in industrial and interlining markets will also benefit, according to Detlev Käppel, global sales director of technical nonwovens.

Meanwhile, back in Germany, Tenowo is finishing up construction on a new spunlace line—its second—in Reichenbach. Unlike most spunlace manufacturers, Tenowo has avoided wipes and instead has focused on specific industrial applications such as roofing, filtration, automotives and medical.

“The equipment has been uniquely designed under Tenowo’s leadership and is a state-of-the-art manufacturing line,” says managing director Harald Stini. “It offers many technical features for these market segments.”

Elsewhere in Germany, Tenowo has added a new needlepunch line in Hof, which has allowed it to develop a number of new products for roofing and filtration markets, while in Mittweida, the group has increased capacity of its Maliwatt and Multiknit products for the industrial segments. The stitchbond products are used as interior facing applications, foam replacement in seat components, carrier substrates for wire harnessing and other markets. Stini says additional investments in this arm of the business will be made in 2016.

In North America, Tenowo’s operation in Lincolnton, NC remains the leading supplier of thermal and acoustical components for the North American automotives industry.

“Automotive thermal and acoustic parts using Tenowo’s nonwovens provide effective noise reduction for a wide frequency range, superior appearance and excellent process capability when used in a wide array of different molding processes and when combined with various other materials,” says Lothar Hackler, president Tenowo Inc.

To continue growth in North America, Tenowo has added a new powder coating line as well as other investments measures in Lincolnton.

“The successful launch of new products further strengthened our position as an innovative nonwovens supplier,” Hackler says “Our technical expertise, new innovative products, excellent customer service and focus and dedication to automotives are the foundation of our success.”

According to Stini, the total costs of this investment plan will be about €50 million when all is said and done.

Meanwhile, the other side of Tenowo’s business, apparel, has decreased in scope in recent years due to competition from China. The business, which once dominated sales, now only represents about 10% of sales, but executives said it is a steady business. Tenowo’s strengths are its ability to get to market quickly and offer specialty materials.  “We are still in the business and we take care of it but it’s not a strategic growth area right now,” Stini says

Plants: Hof/Saale, Germany; Reichenbach, Germany; Mittweida, Germany; Lincolnton, NC, U.S.;
Processes: Drylaid, thermal bonded, needlepunched, saturate bonded, stitchbonded, spunlace
Brands: Variopoint, Unipoint, Unisoft, Zetafelt, Zetastitch, Zetafil, Zetawatt, Zetaloft, Florbond, Zetabond, Zetajet, Zetatherm, Zetamold, Maliwatt, Malivlies, Kunit, Multiknit eswegee 2000 series, Bassopoint
Major Markets: Acoustics, automotive, filtration, roofing, industrial, composites, interlinings

The big news from Tenowo, the German-based manufacturer of nonwovens for industrial and apparel-related applications, is an all-encompassing investment plan that will expand existing operations in Germany and the U.S. and add a new site near Shanghai, China to its global footprint. These investments, which are expected to come onstream in the next 12 to 18 months should start impacting sales levels in the next couple of years, according to company director Harald Stini.

“The investments won’t translate into growth immediately,” says Stini. “With technical applications, it takes 1 to 2 years to really trickle down.”

In 2013, the company’s sales were $152 million.

“This kind of investment project, which is in the range of €50 million ($67mn), is truly across the board for us,” Stini says.

One of the legs of the investment is a new spunlace line in Reichenbach, Germany where Tenowo currently operates one line, which has been sold out for some time. The new line, which began construction in April, will bring production from 45 million square meters to 100 million square meters. The new capacity will largely target customers in automotive and construction sectors and, to a lesser extent, filtration. The investment, which is on track to be completed in mid-2015, is estimated at €25 million ($36mn).

“We are pleased with the continued strong growth in demand for Tenowo products,” says Klaus Steger, chairman of the board. “In addition to expanding production, we will also be investing in our research and development activities, thus achieving further growth in new market segments.”

Tenowo first entered the spunlace market in 2006 and its first line has reportedly been operating at sold-out status for two years. Unlike most spunlace manufacturers, Tenowo has largely avoided the wipes market, instead choosing to focus on industrial markets.

Beyond the spunlace investment, the company has also announced it will expand production of its needlepunch operations in Hof, Germany and its stitchbonding output in Mittweida, Germany and add a new powder coating line in Lincolnton, NC, U.S.

“The U.S. investment will allow us to get better prepared for the automotives market where we want to launch new and improved products,” Stini says.

While the automotives market in the U.S. is clearly on its radar, Tenowo cannot ignore the potential of China, which already leads the world in car production, and is currently constructing a $15 million line at a new site in Huzhou, China, not far from Shanghai. The line, a combination of needlepunch and chemical bonding technology, was announced last year and is expected to start operations in June.

“We have already been doing business in China from Germany for years so we have a customer base but we are finding that more and more Chinese automotive makers are looking for local producers or at least locally made products.”

Looking at Tenowo’s existing businesses, in 2013, sales remained flat amidst high demand in the automotive arena countered by pricing pressure at both the OEM and Tier 1. Within automotives, Tenowo’s lightweight needlepunch nonwovens as well as its highloft nonwovens, sold under the brand Zetaloft, have contributed to successes. In addition to automotives, the company has been targeting niche applications in filtration and construction.

“Sales have only increased marginally for us because of limited capacity,” Stini says. “As new lines come onstream, we expect it will take 1 to 2 years for things to trickle down and start boosting sales. In technical applications, it can take a little longer for investments to make an impact.”

Meanwhile, the other side of Tenowo’s business, apparel, has decreased in scope in recent years due to competition from China and now represents about 10% of total sales. Here, Tenowo’s strengths are its speed to market and its ability to offer specialty materials. “The story has not changed here,” Stini says. “We still have the business and we take care of it but it’s not a strategic growth area. It just helps us fill our lines.”

Plants: Hof/Saale, Germany; Reichenbach, Germany, Mittweida, Germany; Lincolnton, NC
Processes: Drylaid, thermal bonded, needlepunched, saturate bonded, stitchbonded, spunlace
Brands: Variopoint, Unipoint, Unisoft, Zetafelt, Zetastitch, Zetafil, Zetawatt, Zetaloft, Florbond, Zetabond, Zetajet, Zetatherm, Zetamold, Maliwatt, Malivlies, Kunit, Multiknit eswegee 2000 series, Bassopoint
Major Markets: Acoustics, automotive, filtration, roofing, industrial, composites, interlinings

The big news from the world’s 31st largest nonwovens producer is its new name. Effective January 1, 2013 the “Eswegee” division of Textilgruppe Hof was renamed Tenowo GmbH while Textilgruppe Hof AG was renamed “Hoftex Group AG. “The name change, which was not precipitated by any change in ownership, was intended to simplify the different names of its manufacturing locations and to follow the company’s global approach and growth targets for the entire group, says managing director Harald Stini.

Speaking of a global approach, in 2012, Tenowo made a strategic decision to follow its customers in Asia. After serving the Asian market remotely for many years, Tenowo will establish a new plant in the Zhejian province of China beginning in 2014.

Technologies planned for the new site will largely target industrial markets, namely the automotives market, which has been a strong one for the company in recent years. This growth has been the result of a combination of economic recovery as well as successful new product introductions and increased market share.

“On the one hand, the economic environment, especially in the automotive area, provided room for further growth,” says Stini. “On the other hand our corporate strategy in terms of investments, capacity expansions and global presence has paved the way in order gain more market share.”

Other reasons for the company’s success in 2012 were a strong customer commitment and close relationships across all markets.

But, amidst this success, challenges existed. These include the high demand from customers in the automotives arena as well as price pressure both at the OEM and Tier 1 level. However, the company managed together with its customers to achieve a win-win-situation by internal savings through higher productivity and alternative material solutions, according to global sales director of technical nonwovens, Detlev Kaeppel.

In fact, new products offered by Tenowo included lightweight needlepunched nonwovens for automotive applications and other industry markets such as filtration and construction. Additionally, Tenowo launched a new product group named “Zetaloft,” which are highloft nonwovens targeting automotive and other industrial applications.

Within its spunlace operation, located in Reichenbach, Germany, Tenowo’s specifically designed products for industrial applications continue to be well accepted by the market and this line continues to run at full capacity.

“Due to our own tailor made machinery set-up, we are able to run a wide proliferation of products. The specifi c fiber orientation contributes to good coverage at low weights and enhanced acoustic properties, which is requested for the final automotive parts,” Kaeppel says.

While firm plans have yet to be made, a decision regarding expanding the company’s spunlace operation, which it started in 2009, will likely be made by the end of the year. Additionally, the company continues to look at expansion possibilities across all of its businesses as all of its lines have been running at full capacity.

The other side of Tenowo’s business, interlinings, has stabilized after facing years of competition from Asia and continues to be a strategic market segment for Tenowo. “Although market conditions for Europe are not very rosy, we are convinced it will play an important role in the future as not all demand can be covered by Asia,” Stini says.

Tenowo has an operation in India through a joint venture with Supreme Nonwovens.

The company’s stitchbond specialist Tenowo Mittweida GmbH has also been able to further develop its business across all market segments by wisely making investments and capacity expansions across all of its businesses—Malivlies, Maliwatt, Kunit and Multiknit—all at the right point in time. Some investments will overlap into 2013 and seem to fi t perfect with new programs coming on-stream. The group’s unique Multiknit technology is favored by many German automotives companies including BMW, Audi and Mercedes because they provide good air permeability, less fogging, a comfortable seating climate, recyclability and cost savings compared to other sandwich constructions.

To help further broaden its materials within automotives, Tenowo has developed a new product group that can be laminated under genuine leather and PUR artificial leather seats. Additionally, stitchbonded nonwovens for cable harnessing in automotive is another strategic market segment, where Tenowo products provide good abrasion resistance, acoustical and insulation features.

Back in the U.S., the group’s North American division, now known as Tenowo Inc., based in Lincolnton, NC supplies thermal and acoustic componentry for the North American automotive industry. Automotive thermal and acoustic parts using Tenowo nonwovens provide effective noise reduction for a wide frequency range, superior appearance and excellent process capability when used in a wide array of different molding processes and when combined with various other materials.

New investment has led to better than 45% growth within the North American automotive business and demand for advanced thermal and acoustic componentry nonwovens continues to be strong in North America. Tenowo will continue to respond with major investments in additional capacity and new innovative products including a doubling of current production capacity within the next 18 months.