International top 40

Nonwovens Industry, Sept, 2008 by Karen Bitz McIntyre, Ellen Wuagneux

The new structure reportedly gives clearer accountability over who manages production assets throughout the business. "I found quite a complicated matrix where accountability wasn't particularly clear as to who was responsible for production assets," Mr. Olson explained. "From my perspective, we are now seeing production quality yields and seeing other improvements from having clearer accountability for assets."

For instance, grouping tuft with the spunlaid divisions of hygiene and Evolon--the brand name for Freudenberg's microfiber and bicomponent microfilament technology--made sense because the technologies share production lines. Under the old structure, it was unclear who was responsible for capital improvement and yield improvement projects on shared lines, such as one known internally as PK6, which makes microfiber products as well as Tuft products and underwent a major upgrade in 2007.

"Before the restructure, the tuft business was in charge of PK6 and the operators of this line had no incentive to use capacity from PK6 for Evolon even though it's all spunlaid technology," Mr. Olson explained. By grouping together the divisions, these operators are now more encouraged to devote output to microfiber applications, a profitable technology for Freudenberg.

Evolon is also made on a pilot size line in Colmar, France. Since its introduction in 1999, Freudenberg has been growing Evolon in a number of areas, many of which are new to the nonwovens industry. With more capacity on PK6 centering on this technology, executives expect it to expand even further, most likely to the point that larger investment supporting the technology will need to be made in the 2010-2012 time period, according to Mr. Olson.

Among the many applications for Evolon is signage. In fact, banners using Evolon were used by Palexpo at INDEX 2008 in Geneva, Switzerland. Selected in particular for its certified flame-retardant and unique matte look, Evolon was used in an attention-grabbing signage application comprising large, four-sided cubes measuring up to 130cm by 260 cm. Printed to display important directional information to the show's 520 exhibitors and almost 12,500 visitors, each cube was suspended at a prominent point from the ceiling of the 50,000 square meter exhibition hall. Geneva-based Palexpo used its internal production capability to print and cut the Evolon material.

In announcing the restructuring, Freudenberg also said it would spin off its filter division in January 2009 to become a separate business group within the Freudenberg Group of companies. This decision has evolved from Freudenberg's business model, which favors small entrepreneurial companies. "It's not unusual for Freudenberg to carve out a segment like that," Mr. Olson said. "It's been the experience that it grows more quickly based on that structure."

Currently, a converting operation within Freudenberg's nonwovens group, the filtration division converts nonwovens into finished filter products, which are sold to OEMs or, in some cases, directly on the retail market. When spun off, the division will be Freudenberg's 15th subgroup company, not to mention one of Freudenberg Nonwovens' largest single customers.