Tissue business area
Tissue and airlaid - Duni's base
The Tissue business area produces and sells tissue and airlaid for conversion into tabletop products and hygiene products. During 2013, sales to external customers increased by 14% (2%). Just over 45% of production is sold to external customers, while the remainder is used within the Group.
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 specialized in the production and deep dyeing of high-quality tissue and airlaid.
Development in 2013
In 2013, sales within Tissue increased to SEK 499 (436) m. Operating income was SEK 17 (-1) m and the operating margin was 3.4% (-0.2%).
Closure of hygiene materials production unit
In February 2013, Duni took the decision to discontinue the operations within the Tissue business area involving the manufacture and sale of materials to the hygiene products sector. The business is not profitable and the assessment is that acceptable profitability cannot be achieved within the foreseeable future. In November 2013, a decision was taken to extend production for an additional year. Consequently, production is continuing with satisfactory profitability until closure of the plant.
Final closure of the production unit is expected to take place in March 2015. As a consequence of the decision to discontinue the production of hygiene materials, the plant has been operating at a high level of capacity utilization, thereby contributing to the satisfactory profitability reported by Tissue in 2013, which will continue until the plant is closed in March 2015.
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 Tissue business area's strategy in brief:
- Focus on Duni's core business, material for tabletop products
Net sales and operating income, SEK m
| Net sales | Underlying operating income | |
| 2009 | 543 | 16 |
| 2010 | 499 | 18 |
| 2011 | 428 | 25 |
| 2012 | 436 | -1 |
| 2013 | 499 | 17 |
Net sales per geographic region, %
| % | |
| Nordic region | 2 |
| S. and E. Europa | 51 |
| Central Europe | 30 |
| Other | 17 |
External and internal sales, %
| % | |
| External | 47 |
| Internal | 53 |
Percentage of the Group's total sales, %
| % | |
| Professional | 73 |
| Consumer | 15 |
| Tissue | 12 |
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