Nonwovens Industry: The hygiene and nonwovens industries are closely linked to petrochemical supply chains. How is the current situation affecting the sector?

Saudi German Nonwovens: The situation has introduced a significant level of uncertainty across global supply chains, particularly around raw material availability, logistics and pricing stability. From SGN’s perspective, we are seeing pressure building across the full petrochemical value chain — from feedstocks into polymers, logistics and pricing.

Materials such as polypropylene, polyethylene, polyester fibres and superabsorbent polymers all depend on upstream petrochemical feedstocks, so when disruptions occur at that level, the impact moves rapidly through the entire hygiene and nonwovens ecosystem.

While a ceasefire would support stabilization, supply chains and pricing do not rebalance immediately, and a period of adjustment is typically expected as markets normalize.

For suppliers like SGN, the priority in this environment is maintaining operational continuity while keeping customers informed about developments in raw material markets. Close communication and strong partnerships become especially important when conditions are evolving.

NWI: Raw material volatility has been widely discussed recently. What developments are you seeing in the polymer markets?

SGN: Polypropylene is currently one of the most closely watched materials in our industry, and we are already seeing significant movements in availability and pricing across multiple regions.

From the discussions we are having across the market, there are clear signals that supply conditions are tightening in several regions. At the same time, some polymer suppliers have paused forward pricing while markets react to developments in feedstocks and energy costs. In some cases, suppliers have also withdrawn forward offers altogether, reflecting the level of uncertainty in the market.

Because polypropylene sits at the core of many nonwoven materials, any disruption at that level quickly affects a wide range of downstream products — from spunbond and SMS fabrics to films, fibres, adhesives and other components used in hygiene products.

For nonwovens producers like SGN, this environment reinforces the importance of a diversified and localized raw material sourcing strategy. Our manufacturing base in Saudi Arabia provides strong access to regional petrochemical feedstocks, while our broader supply network allows us to maintain dual sourcing across multiple suppliers and regions.

This combination helps us manage volatility more effectively and maintain continuity of supply for our customers. In periods like this, having both local feedstock access and diversified sourcing channels becomes a critical advantage in maintaining stable production and delivery.

Even as conditions stabilize, markets typically take time to rebalance, and pricing structures adjust gradually rather than resetting immediately.

NWI: Are these impacts limited to one region or will the effects spread globally?

SGN: The petrochemical supply chain is highly interconnected, so regional disruptions rarely stay regional for long.

From what we are seeing in the market, changes in resin availability and pricing in one region are already influencing supply dynamics elsewhere. Producers, converters and distributors are adjusting sourcing strategies as the situation evolves.

Because SGN operates manufacturing in Saudi Arabia alongside supply hubs in Europe and the United States, we have visibility across multiple regions. That perspective makes it clear that these developments are not isolated, but part of a broader global adjustment as supply flows, pricing and sourcing strategies rebalance across regions.

NWI: Beyond raw materials, are there other pressures emerging across the supply chain?

SGN: Yes, logistics, transportation and energy markets are all becoming important factors as well.

On the logistics side, we are already seeing adjustments in shipping routes, insurance premiums and transportation costs as companies respond to the evolving situation. In some cases, this is introducing additional surcharges or delays as shipping and insurance providers reassess risk exposure in certain regions.

Energy markets are another important element. Petrochemical and nonwovens production is highly energy-intensive, so fluctuations in energy costs can quickly translate into higher production costs for polymers and other materials used in nonwovens.

The industry experienced something similar during the energy crisis following the Ukraine conflict in 2022, when rising energy prices significantly affected chemical, polymer and nonwoven production in Europe. Situations like this highlight how closely linked energy markets, petrochemical production and global supply chains really are.

These factors reinforce that this is not only a raw material issue, but a broader supply chain adjustment involving logistics, insurance and energy.

NWI: As a supplier operating in the Gulf region, what are you seeing first-hand in terms of supply chain dynamics?

SGN: Operating manufacturing and supply activities in the region means we are seeing these developments in real time.

At the same time, our structure provides resilience. SGN’s manufacturing base in Saudi Arabia benefits from strong access to petrochemical feedstocks and a stable energy environment, which helps provide continuity of supply and a degree of insulation from some of the volatility seen in other regions.

In addition, our regional supply hubs in Europe and the United States allow us to remain close to customers and maintain supply agility. This combination of regional manufacturing strength and global supply presence enables us to support customers across different markets even as conditions evolve.

NWI: Have customer expectations changed during this period of uncertainty?

SGN: Customers are understandably placing even greater emphasis on supply continuity, responsiveness and transparency.

At the same time, innovation continues. Many hygiene manufacturers are still progressing with product development and testing programs, which means development timelines remain important even during uncertain periods.

For SGN, this reinforces the importance of close collaboration with customers to ensure both production and development timelines can continue moving forward.

We have also seen strong engagement from customers during this period, reinforcing the importance of long-term partnerships and open communication across the value chain.

NWI: Can you share an example of how suppliers are supporting customers during this period?

SGN: During the last weeks, a global customer approached us with an urgent request for trial material of our new material, Sofina, required for a critical development project in Europe. The timeline was extremely tight, so our teams adjusted production schedules to prioritise the material.

From the initial request to delivery in Europe, the entire process was completed within four days, allowing the customer to proceed with their planned production and testing schedule without delay.

Examples like this demonstrate how close supplier–customer partnerships can help maintain innovation and development momentum even when the broader environment is uncertain or adjusting.

NWI: What message would you share with the industry today?

SGN: The key message is that the industry is now moving through a period of adjustment, where stability returns gradually rather than immediately, and managing that transition requires close collaboration and planning across the value chain.

Even during periods of volatility, the hygiene industry has a shared responsibility to ensure that essential products remain available to consumers. Suppliers, manufacturers and partners all play a role in maintaining that stability.

From SGN’s perspective, our focus remains on supporting customers through continuity of supply, diversified sourcing strategies and close collaboration, ensuring that business continues to move forward.

NWI: Looking ahead, what lessons might the industry take from the current situation?

SGN: Periods of disruption tend to highlight the importance of resilience across the supply chain. For the nonwovens and hygiene industries, that increasingly means balancing global reach with regional supply stability.

One lesson many companies have taken from recent years — whether during the pandemic, the energy crisis following the Ukraine conflict or the current geopolitical tensions — is that diversified sourcing and regional manufacturing structures are becoming more important for supply security.

From SGN’s perspective, our manufacturing base in Saudi Arabia provides a strong foundation in that regard. The Kingdom benefits from close proximity to major petrochemical producers and a relatively stable energy environment, which supports consistent access to key feedstocks used in nonwoven production.

At the same time, our regional hubs in Europe and the United States allow us to remain close to customers and maintain flexibility in supply. That combination of regional manufacturing strength and global customer proximity is increasingly important in helping maintain continuity for hygiene manufacturers.

Ultimately, the goal across the industry remains the same: ensuring that essential hygiene products continue to reach consumers reliably, even as the broader environment adjusts.

NWI: What message would you like to share with customers and industry partners at this time?

SGN: Our message is straightforward: the hygiene industry has always operated through strong partnerships across the value chain, and those relationships become even more important during periods of uncertainty.

While the current environment is creating volatility in raw materials, logistics and energy markets, the industry has faced similar challenges before. What matters most is maintaining open communication, planning ahead and working closely together to manage the transition.

At SGN, our focus remains on ensuring supply continuity, supporting customers’ development programs and remaining responsive when our partners need us. Our teams are fully operational, and we remain accessible and ready to collaborate.

Ultimately, our goal is simple — to help our customers continue producing and bringing essential hygiene products to market with confidence, both during periods of volatility and as the market stabilizes.