Tissue business area
Tissue and airlaid - Duni's base
The Tissue business area, which produces tissue and airlaid for table top products and hygiene products, accounted for 12% (11%) of sales to external customers in 2012. Just over 45% of production is sold to external customers, primarily for the manufacture of hygiene products, while the remainder is used within Duni.
Tissue and airlaid constitute the basis for Duni's production of table top products, such as napkins and tablecoverings, as well as hygiene products. The term ‘airlaid’ refers to air laid tissue, while ‘tissue’ refers to wet laid tissue. Production plants are located in Skåpafors and Dals Långed in Dalsland. These paper mills are relatively small and specialized in the production and deep dyeing of high-quality tissue and airlaid.
Development in 2012
Sales within Tissue in 2012 amounted to SEK 436 (428) m. Operating income amounted to SEK -1 (25) m. The operating margin was -0.2% (5.9%).
Duni began the year with relatively high inventory levels. This factor, combined with low sales, had a negative impact on operating income. In addition, airlaid material, which is produced and sold to external customers within the hygiene products area, demonstrated deteriorating profitability.
Prices of short fibre pulp used in tissue production increased at the beginning of the year, stabilised around the end of the first half of the year, and thereafter declined somewhat. Prices of long fibre pulp, which is used in the production of tissue, were initially relatively stable, began to fall around the end of the first half of the year, and stabilised during the latter part of the year. Prices of fluff pulp (long fibre pulp prepared for production in dry environments) used in airlaid production were relatively stable.
During 2012, work focused on commencing production of the new material, Evolin®, and establishing stable processes. A new roller was installed and brought into commission for one of the production’s tissue lines, and an upgrade of one of the airlaid machines began at the beginning of the year with the aim of increasing flexibility and efficiency.
Events since 31 December 2012
In February 2013, Duni decided to commence negotiations with the unions regarding closure of the operations within the Tissue business area relating to external sales, primarily to external customers within the hygiene products sector.
Customer categories
Most of Duni’s production of air laid tissue, commonly referred to only as airlaid, is sold externally as an input material to manufacturers of hygiene products for the consumer market. Customers within this category are often global companies with their own organizations for product development, manufacturing and distribution.
Duni’s production of wet laid tissue, commonly referred to as tissue, is mainly used internally and meets Duni’s own needs for the manufacture of table top products. Tissue is produced in various qualities and processed into various materials, such as Dunicel® and Dunisilk® . Dunicel® is a robust material which is suitable for the production of table top products and has a feel which resembles cotton and linen tablecoverings. Dunisilk® is a material which is used for tablecoverings and has been produced to protect the table and can be wiped off after use. Production of airlaid meets Duni’s own needs for the production of napkins. The unique premium material, Dunilin® , has incredibly good absorption quality combined with a very soft feel. Since the end of 2011, production is also taking place of Evolin®, a new and revolutionary tablecovering material which is a direct alternative to linen.
Content
The business area's strategy in brief:
- Focus on Duni's core business – material for tabletop products
| Net sales | Underlying operating income | |
| 2008 | 551 | 35 |
| 2009 | 543 | 16 |
| 2010 | 499 | 18 |
| 2011 | 428 | 25 |
| 2012 | 436 | -1 |
Net sales per geographic region, %
| % | |
| Nordic region | 3 |
| S. and E. Europe | 53 |
| Centra Europe | 35 |
| Other | 10 |
External and internal sales, %
| % | |
| External | 45 |
| Internal | 55 |
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