Author name: Haydn Davis

EDANA has this week been representing its member companies at a joint meeting of the China-Japan Hygiene Entrepreneurs to urge increased cooperation and trade in nonwovens and related products.

The organisation has been present at similar meetings in all four BRIC countries this year, and is also expanding the scope of its international conferences, with the forthcoming Filtrex in India in December to be followed by others in Turkey and Russia.

“As emphasized at the APEC summit by Chinese president Hu Jintao, the solution to the current global economic challenge lies in determined action from both emerging and developed countries,” EDANA’s general manager Pierre Wiertz said at the meeting. “It requires more rigorous economic policy and continued innovation in developed markets and more emphasis on growth of domestic consumption in the emerging markets which have high savings.

“As it celebrates its 40th Anniversary, EDANA offers its support and experience to colleagues from China and Japan, especially in extended producer responsibility, or as we define it,  product stewardship, which includes regulatory compliance, product safety and environmental sustainability.

“Global harmonisation in these areas – and especially in standards and test methods will be some of the topics we propose for our continued cooperation,” Mr Wiertz concluded.

Lenzing has received the first Programme for the Endorsement of Forest Certification (PEFC) Award.

It was presented to the company’s director of wood purchasing during the 2011 Austrian Timber Talks this month, as the International Year of the Forest draws to a close.

The PEFC is an international non-profit, non-governmental organisation dedicated to promoting Sustainable Forest Management through independent third-party certification. The new award honours individuals from PEFC-certified companies who have exhibited outstanding support for the goals of its programme.

“At our production site in Lenzing we attach particular importance to the sustainable origin of the beech trees we use for nonwoven fibres,” said Mr Gill. “The wood originates from European forests and frequently also from family-run companies. PEFC-certification enables us to prove and to promote the fact that we use the wood sustainably.”

With the PEFC-certification of its nonwoven fibres at the Austrian site in Lenzing, the company is laying a foundation stone for chain of custody certification – from timber to the end product.
PEFC-certification for the site  applies to both Lenzing Viscose and Viscostar fibres for nonwoven applications.

“This award confirms that we are on the right track,” said Wolfgang Plasser, general manager of Lenzing’s Nonwovens business unit.

Fiberweb is to exit the hygiene business in order to concentrate on industrial markets with higher operating margins and returns.

Binding agreements have been made for Petropar, the Brazilian owner of nonwovens manufacturer Fitesa, to acquire Fiberweb Hygiene for a total cash consideration of US$286 million.

The sale is conditional on the approval of Fiberweb shareholders at a general meeting, the approval of Petropar shareholders, the completion of Petropar’s funding and completion of a pre-sale reorganisation.

The transaction is expected to close at the end of 2011.

Following the sale, Fiberweb will focus on the growing technical fabrics and construction products markets, where it has leading positions in several attractive niches, notably in filtration, construction specialties, geosynthetics, agriculture and several medical areas.

The disposal will enable the group to repay all its existing debt.

Taking into account Petropar’s assumption of 100% of the FitesaFiberweb joint venture’s debt and certain pension liabilities, the enterprise value of the transaction is approximately £229 million.

In 2010 the Fiberweb Hygiene business recorded sales of approximately £193 million, and EBITDA of approximately £26 million. It had gross assets of £252 million as at 30 June 2011.
In 2010, the remaining Fiberweb Industrial Business would have reported sales of approximately £270 million and EBITDA of £29 million,.

Following completion, Fiberweb will have technical fabrics operations in Berlin and Aschersleben in Germany, Biesheim in France, Terno d’Isola in Italy and Old Hickory, Tennessee in the USA, and geosynthetics operations in Maldon and Aberdare in the UK, Melbourne, Australia and at Old Hickory.

The group will move rapidly to review its cost base, recognising the smaller scale and reduced scope of the business. This review is expected to result in restructuring costs, primarily for severance.