Treofan moves forward with strategic realignment

Adjusted EBITDA was 38 million EUR (42.6 million USD) in 2016, versus 32 million EUR (35.9 mllion USD) in the previous, with a largely stable sales volume of 157 kilotons, representing a doubling of profits within two years. Bickel expects a further improvement in 2017.

Specialty films made up 72 percent of the sales volume, up three percentage points from 2015; Bickel stated that the target for 2017 is 75 percent.

Treofan’s strategic transformation from a conventional film manufacturer into a provider of integrated premium products is one of the main drivers of this profitable growth, according to Bickel, who commented: ‘We want to become the leading specialist for innovative surface solutions by combining our technical expertise with our unique relationships to the main regional and international brand manufacturers and major processors. So we’re increasingly developing innovative integrated solutions in direct collaboration with multiple partners across the entire value chain.’

A tangible example of this approach is the hybrid film HybraPack. This combination of paper and BOPP film, jointly developed with paper manufacturer Feldmuehle Uetersen and other partners from the processing and machine industry, is said to open up new possible applications in the  market for stand-up pouches. Treofan recently demonstrated the first commercial use of the concept by Trinity haircare.

With three new types of film introduced in Europe and three in the US so far this year, in addition to continuous product modifications worldwide, Treofan has a minimum target of four new products per year.

In spring 2017, Treofan was also able to sign its first major deal with a Chinese battery manufacturer for TreoPore microporous separator film, which is used in lithium-ion batteries such as in the growing market for electric vehicles, with the option of turning this into a long-term supply partnership.

‘These two examples perfectly illustrate our strategic ambition of combining the most differentiated product portfolio with the widest range of applications – from packaging film, labels and tobacco film, to technical films for capacitors and lithium-ion batteries,’ added Bickel.

Process optimizations resulting in cost savings also contributed significantly to Treofan’s continued profitable growth, with Bickel noting the restructuring of the Italian organization into a pure manufacturing unit with two production sites and lean administration as a ‘milestone’. The organizational restructuring of the Neunkirchen site that began in 2016 will be completed this year. In addition, Treofan has launched a global efficiency program called NICO (Next Improvement Challenge Operational). Taken together, these measures should bring savings of around 22 million EUR (24.6 million USD) by 2020, according to the company, on top of the 23 million EUR (25.7 million USD) already saved through cost reductions between 2013 and 2015.

In parallel to this, Treofan is investing in plant technology at its sites to underpin its specialization strategy. Investments of almost 50 million EUR (55.9 million USD) have already been approved, including a coater in Italy and a new production line in Mexico.

‘Step by step, we’re building a plant structure that’s optimally tailored to our product and market strategy,’ concluded Bickel.

Currency conversion via xe.com, and correct as of May 31, 2017