09.11.23
Helsinki, Finland
www.suominen.fi
2022 Nonwovens Sales: $524 million
Key Personnel
Tommi Björman, CEO; Janne Silonsaari, CFO; Markku Koivisto, senior vice president, Europe and interim senior vice president, Americas; Mimoun Saim, senior vice president, Global Operations; Klaus Korhonen, senior vice president, HR and Legal Affairs
Plants
Bethune, SC; Green Bay, WI; Windsor Locks, CT; Paulinia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, wetlaid, thermal bond, chemical bond, SPC, Webril
Major Markets
Wipes, medical, hygiene
Net sales were $524 million in 2022 for Suominen, the world’s leading supplier of nonwoven substrates to the global wipes market, due to higher sales prices amid lower sales volumes. Other factors impacting business conditions included unprecedented raw material inflation, which increased from already inflated levels in 2022 after Russia’s illegal invasion of Ukraine in February. Particularly Suominen’s U.S. business suffered from the high inventory levels in the whole supply chain, where imbalance started to normalize only during the second half of the year.
Throughout the year, Suominen continued to implement its strategy published in 2020. The objective of this strategy is to achieve growth and improved profitability through sustainability, customer focus and efficiency. In 2022, Suominen announced an investment to enhance and upgrade one of its production lines in Nakkila, Finland. The investment is made in line with Suominen’s strategy to be the frontrunner in sustainable nonwovens and is expected to be completed in the second half of 2023.
Additionally, Suominen continues to focus on developing sustainable products. In 2022, sales of sustainable products were 99% higher than in the base year 2019, partially thanks to the introduction of 12 sustainable products including Suominen’s first carbon-neutral product, Biolace Zero.
Suominen developed Biolace Zero, a 100% biodegradable, compostable, plastic-free nonwoven made with Veocel Lyocel fibers from long-term partner Lenzing. It can be used for many types of wiping applications due to its excellent wet and dry strength and improved softness. Other recent product introductions include Hydraspun Circula, moist toilet tissue nonwoven made with recycled paper. Like traditional Hydraspun products, Circula contains virgin cellulosic fibers as well as fibers from recycled paper, without compromising the end product quality. The product received an INDEX23 Innovation Award.
“Hydraspun Circula demonstrates that innovations in nonwovens can support the circular economy and sustainable production. Receiving recognition for that is very rewarding,” says Johanna Kivistö, manager, Category Management, Europe. Hydraspun Circula was developed specifically for moist toilet tissues but can be used also in multiple other applications. It is biodegradable and meets EDANA/INDA GD4 flushability assessment according to internal testing. The increased focus on sustainable products has also led to the permanent closure of Suominen’s manufacturing site in Mozzate, Italy, which did not have the capabilities to process sustainable fibers.
“The demand for traditional blended fiber products in Europe is declining. Manufacturing sustainable nonwovens competitively requires production assets and processes optimized specifically for these products. Our lines at the Mozzate plant are not best suited for sustainable fibers, and this combined with high operating costs means that the plant is not competitive and the situation is not expected to improve materially going forward. We are constantly evaluating the performance and profitability of our assets, and in the current situation we have unfortunately come to the conclusion that we need to consider closing the production at Mozzate to improve the competitiveness of our European business,” says former interim CEO Klaus Korhonen during the closure announcement.
By region, European sales represented about 42% of Suominen’s sales. The company has two sites in Italy, one in Spain and one in Finland. According to Suominen, the European market is highly fragmented and competitive and the SUP is an important driver toward sustainability. Meanwhile, North American sales represented 58% of sales. As the largest consumer market for wipes, North America, where Suominen has three plants, continues to see growth across all categories for wipes and is particularly strong in the private label market. The South American market, where Suominen operates a Brazilian facility, is dominated by the baby care category and branded players.
www.suominen.fi
2022 Nonwovens Sales: $524 million
Key Personnel
Tommi Björman, CEO; Janne Silonsaari, CFO; Markku Koivisto, senior vice president, Europe and interim senior vice president, Americas; Mimoun Saim, senior vice president, Global Operations; Klaus Korhonen, senior vice president, HR and Legal Affairs
Plants
Bethune, SC; Green Bay, WI; Windsor Locks, CT; Paulinia, Brazil; Cressa, Italy; Mozzate, Italy; Nakkila, Finland; Alicante, Spain
Processes
Spunlace, wetlaid, thermal bond, chemical bond, SPC, Webril
Major Markets
Wipes, medical, hygiene
Net sales were $524 million in 2022 for Suominen, the world’s leading supplier of nonwoven substrates to the global wipes market, due to higher sales prices amid lower sales volumes. Other factors impacting business conditions included unprecedented raw material inflation, which increased from already inflated levels in 2022 after Russia’s illegal invasion of Ukraine in February. Particularly Suominen’s U.S. business suffered from the high inventory levels in the whole supply chain, where imbalance started to normalize only during the second half of the year.
Throughout the year, Suominen continued to implement its strategy published in 2020. The objective of this strategy is to achieve growth and improved profitability through sustainability, customer focus and efficiency. In 2022, Suominen announced an investment to enhance and upgrade one of its production lines in Nakkila, Finland. The investment is made in line with Suominen’s strategy to be the frontrunner in sustainable nonwovens and is expected to be completed in the second half of 2023.
Additionally, Suominen continues to focus on developing sustainable products. In 2022, sales of sustainable products were 99% higher than in the base year 2019, partially thanks to the introduction of 12 sustainable products including Suominen’s first carbon-neutral product, Biolace Zero.
Suominen developed Biolace Zero, a 100% biodegradable, compostable, plastic-free nonwoven made with Veocel Lyocel fibers from long-term partner Lenzing. It can be used for many types of wiping applications due to its excellent wet and dry strength and improved softness. Other recent product introductions include Hydraspun Circula, moist toilet tissue nonwoven made with recycled paper. Like traditional Hydraspun products, Circula contains virgin cellulosic fibers as well as fibers from recycled paper, without compromising the end product quality. The product received an INDEX23 Innovation Award.
“Hydraspun Circula demonstrates that innovations in nonwovens can support the circular economy and sustainable production. Receiving recognition for that is very rewarding,” says Johanna Kivistö, manager, Category Management, Europe. Hydraspun Circula was developed specifically for moist toilet tissues but can be used also in multiple other applications. It is biodegradable and meets EDANA/INDA GD4 flushability assessment according to internal testing. The increased focus on sustainable products has also led to the permanent closure of Suominen’s manufacturing site in Mozzate, Italy, which did not have the capabilities to process sustainable fibers.
“The demand for traditional blended fiber products in Europe is declining. Manufacturing sustainable nonwovens competitively requires production assets and processes optimized specifically for these products. Our lines at the Mozzate plant are not best suited for sustainable fibers, and this combined with high operating costs means that the plant is not competitive and the situation is not expected to improve materially going forward. We are constantly evaluating the performance and profitability of our assets, and in the current situation we have unfortunately come to the conclusion that we need to consider closing the production at Mozzate to improve the competitiveness of our European business,” says former interim CEO Klaus Korhonen during the closure announcement.
By region, European sales represented about 42% of Suominen’s sales. The company has two sites in Italy, one in Spain and one in Finland. According to Suominen, the European market is highly fragmented and competitive and the SUP is an important driver toward sustainability. Meanwhile, North American sales represented 58% of sales. As the largest consumer market for wipes, North America, where Suominen has three plants, continues to see growth across all categories for wipes and is particularly strong in the private label market. The South American market, where Suominen operates a Brazilian facility, is dominated by the baby care category and branded players.