HELSINKI - Nonwovens manufacturer Suominen has announced an increase in its spunlace capacity in Europe, part of the company's previously announced five year strategic plan.
The increase involves the upgrading and restarting of one of its existing production lines in Cressa, Italy, an investment which, the company says, will strengthen capabilities in Europe in line with its new strategy.
“Demand for nonwovens products is increasing in all regions. With this investment we are able to support our customers in responding to the growing demand,” Petri Helsky, President and CEO of Suominen, said.
The total value of the investment is approximately €8 million with the plant due to be up and running again during the second half of 2021.
The Finnish firm outlined its new growth plan covering a number of areas ranging from market expansion to sustainability earlier this year.
The new strategy, which also includes financial targets, is expected to underpin Suominen's sustainability credentials, improve its profitability through more efficient operations, and help build a high performance culture within the company. It is also expected to further strengthen the firm's capabilities in Europe and Americas while helping it evaluate growth opportunities in Asia, the largest nonwovens market in the world.
Suominen’s five focus areas to achieve its strategic targets are:
- Operational excellence - Improving efficiency and cost consciousness across the organization
- Sustainability leadership - Leveraging fiber-based nonwovens know-how and unique assets to lead the market with sustainability
- Differentiate with innovation and commercial excellence - Creating closer customer relationships and offering best in class products and services
- Great place to work - Harnessing the positive energy and commitment to deliver results
- Dual operating model - Optimizing our operations and improving our results by managing two different types of business, specialties and standards.
"Suominen’s main focus is on wipes and the vision is to be the frontrunner for nonwovens innovation and sustainability," the company said in a statement at the time. "The market for spunlace, the nonwovens technology where Suominen is the leader with the largest global asset base, will grow in all regions. Legislation and consumer behavior drive for more sustainable products, and Suominen has excellent opportunities to serve this changing market."
The Suominen Board of Directors has also set the following financial targets for the strategy period 2020-2025:
- Net sales growth during the period: above relevant market growth
- EBITDA margin by 2025: above 12%
- Gearing during the period: 40-80%, including the effect of IFRS 16 Leases
Suominen manufactures nonwovens as roll goods for wipes and other applications such as feminine care products and swabs. Net sales in 2019 were €411.4 million.
