Swedish airlaid producer Duni is now completely out of the hygiene market following the transfer of its remaining production in Dals Långed to Skåpafors and conversion of these assets to tabletop lines. In announcing its quarterly results, Duni said that this project would be fully implemented in the fourth quarter of 2015.
 
Duni announced it would exit the hygiene business in February 2013 but the consolidation was delayed when a buyer for its airlaid line was not found. In September 2014, Duni said it would concentrate its entire Rexcell airlaid business in Skåpafors, Sweden, following its exit from the hygiene business. At that time, the company said the Dals Långed plant would close by October 2015 and lines there would be relocated to Skåpafors. The decision comes as demand for premium materials made in Skåpafors is increasing, making that operation greater in size than Dals Långed.
 
“Rexcell is an important part of Duni’s business offerings and the company’s leading market position,” says Duni CEO Thomas Gustafsson. “To concentrate future production to one production site creates both synergies and ensures future capacity needs.”
 
Duni recently reported its second quarter earnings, and net sales amounted to SEK 1,002 million ($166.7 million), showing a growth of 8.7% compared to the previous year. The operating result for the continuing operations, landed at SEK 104 million ($12.1 million) and the operating margin strengthened to 10.3%. Net debt at the end of the quarter amounted to SEK 916 million ($106.7 million).
 
Organic growth in the quarter was lower than in previous quarters. A poorer calendar effect of an early Easter, together with a late and cold spring in central and northern Europe led to a weaker than expected demand during the period. As a consequence, it provided a lower profit rate leverage within the supply chain.
 
The Table Top business area increased net sales to SEK 563 million ($65.6 million) in the quarter, in comparable currencies it reduces business area sales by 2.6%. The decline is explained by calendar effects and weather-wise weaker spring on several of its key markets. The company says Western and Southern Europe continued to show good growth, but it does not compensate for the decline in its more important business regions. Quarter operating profit amounted to SEK 87 million ($10.1 million) and the operating margin to 15.5%.