Neenah, Inc. (Neenah) operates as a specialty materials company.
Businesses
The company operates through two primary businesses, Performance-Based Technical Products; and Premium Fine Paper and Packaging.
The company’s technical products business is a leading international producer of transportation, water and other filter media and durable, saturated, and coated substrates for a variety of end markets. The company focuses on categories where it is, or can be, a market leader. These categorie...
Neenah, Inc. (Neenah) operates as a specialty materials company.
Businesses
The company operates through two primary businesses, Performance-Based Technical Products; and Premium Fine Paper and Packaging.
The company’s technical products business is a leading international producer of transportation, water and other filter media and durable, saturated, and coated substrates for a variety of end markets. The company focuses on categories where it is, or can be, a market leader. These categories include filtration media for transportation, water and other end use applications, backings for specialty tapes and abrasives, release liners, digital transfer papers, performance labels, and other custom engineered materials. The company’s products are typically used in high performance applications where its customers require specific standards and qualifications. The company’s dedicated technical products manufacturing facilities are located in Weidach and Bruckmühl, Germany, Eerbeek, the Netherlands, Andoain, Spain, Bolton, England, Queretaro, Mexico, Munising, Michigan, and Pittsfield, Massachusetts.
The company’s fine paper and packaging business is a leading supplier of premium printing, packaging, and other high-end specialty papers predominantly in North America. The company’s products include some of the most recognized and preferred brands in North America, where it enjoys leading market positions in many of the company’s product categories. Often these papers are characterized by distinctive finishing, colors, textures and coating. The company sells its products primarily to authorized paper distributors, as well as through converters, major national retailers and specialty businesses. The company’s dedicated fine paper and packaging manufacturing facilities are located in Whiting and Neenah, Wisconsin; and Great Barrington, Massachusetts.
In April 2021, the company purchased all of the outstanding equity of Global Release Liners, S.L. (Itasa). Itasa, through its subsidiaries, is a leading global coater and converter of release liners used in hygiene, tapes, industrial, labels, composites, and various other end markets.
Business Strategy
The company focuses on increasing its growth and leading the markets it serves. Its growth businesses include filtration, specialty coatings, engineered materials, and imaging and packaging products.
Products
Technical Products
The company’s technical products business is a leading international producer of specialized media made from polymers and fibers that delivers high performance benefits to customers, such as filtration media for transportation, water and other filtration markets, and saturated and coated performance materials used for specialty tapes, abrasives, performance labels, digital transfer papers, and a variety of other end markets. Typically, its technical products are sold to other manufacturers as key components for their finished products. Many of the company’s key market segments served, including filtration and specialty backings for tape and abrasives, are global in scope. JET-PROSofStretch, KIMDURA, PREVAIL, NEENAH, and GESSNER are some of the brands of the company’s technical products business.
The following is a description of certain key products and markets:
Filtration Media for Transportation, including Induction Air, Fuel, Oil, Cabin Air and Other Applications: Transportation filtration media are sold to filter manufacturers who in turn supply automotive and other companies with filters used as original equipment on new cars and trucks, as well as to the aftermarket. In 2020, the company introduced high performance face mask media in Europe.
Filtration Media for Water and Other Industrial End Markets: Primary applications include reverse osmosis, catalytic conversion, nanofiltration, ultrafiltration, pervaporation and vapor permeation, as well as other applications for specialty markets.
Specialty Backings: Products in this market segment include saturated and unsaturated crepe and flat paper tapes sold to manufacturers to produce finished pressure sensitive products for sale in automotive, transportation, manufacturing, building construction, and industrial general purpose applications, including sales in the consumer do-it-yourself retail channel; and coated lightweight abrasive paper used in the automotive, construction, metal and woodworking industries for both dry and wet sanding applications.
Release Liners: These products include specialty coated media that aids in various adhesive applications in markets, such as hygiene, tapes, industrial, labels, composites and various other end markets.
Digital Transfer Media: Products in this market are used to transfer digital images onto clothing, sportswear, and other materials. A fiber-based sheet undergoes various coatings to impart required performance. Digital transfer papers are also used to digitally print images from paper to clothing, hats, coffee mugs, and other surfaces.
Label and Tag Products: Products in this market are made from both saturated base label stock and synthetic base label stock, with coatings applied to allow for high quality digital printing. Label and tag stock is sold to pressure sensitive coaters, who in turn sell the coated label and tag stock to the label printing community.
Other Latex Saturated and Coated Papers for Use by a Wide Variety of Manufacturers: Premask paper is used as a protective over wrap for products during the manufacturing process and for applying signs, labeling and other finished products. Medical packaging paper is typically a polymer impregnated base sheet providing a breathable sterilization barrier that provides unique properties.
Security Papers and Other Specialty Products: Products in these markets are used in a variety of applications, including passports, clean room papers, and furniture backers.
Fine Paper and Packaging
The company’s fine paper and packaging business manufactures and sells world-class branded premium writing, text, cover and specialty papers and envelopes used in high-end commercial printing services, corporate identity packages and advertising collateral. In addition, the company produces premium packaging, high end beverage labels and other forms of packaging, as well as wide format applications used for display graphics and indoor/outdoor signage. Often these papers are characterized by finishing, colors, textures and distinctive coating.
The following is a description of certain key products and markets:
Commercial Printing Papers, Including Premium Writing, Text and Cover Papers and Envelopes: Uses include advertising collateral, stationery, corporate identity packages and brochures, pocket folders, annual reports, advertising inserts, direct mail, business cards, scrapbooks, and a variety of other uses where colors, texture, coating, unique finishes, or heavier weight papers are desired. The company’s market leading brands in this category include CLASSIC, CLASSIC CREST, ENVIRONMENT, ROYAL SUNDANCE, NEENAH Cotton, and TOUCHE trademarks. The fine paper and packaging business also sells private watermarked paper and other specialty writing, text, and cover papers. Additionally, the publishing business produces luxury and durable covering materials for use in reference and text books, albums and photo books, religious texts, menus, and journals.
Bright Papers: Products in this market are used in applications, such as direct mail, advertising inserts, scrapbooks, and marketing collateral. The company’s brands in this category include ASTROBRIGHTS.
Consumer Products: Products, such as bright papers, cardstock, stationary paper, envelopes, journals, and planners are sold to national retailers like Staples, Office Depot, Walmart and Amazon. The company’s brands in this category include ASTROBRIGHTS, SOUTHWORTH, and Neenah Bright White.
Premium Packaging: Products produced for this market are used for wine, spirits and beer labels, folding cartons, box wrap, bags, hang tags, and stored value cards servicing high-end retail, cosmetics, spirits, and electronics end-use markets. The company’s market leading brands in these categories include NEENAH Folding Board, ESTATE LABEL, Neenah Box Wrap, and IMAGEMAX Paper Card. Additionally, the fine paper and packaging business provides leading solutions in the wide format arena, led by its Digicape and CONVERD brands.
Other: The fine paper and packaging business also produces and sells other specialty papers, such as translucent papers, art papers, papers for optical scanning, and other specialized applications.
Markets and Customers
Technical Products
The technical products business sells its products globally to other manufacturers who convert the company’s product for sale into product categories generally used as base materials in various applications, such as filtration; component backing materials for manufactured products, such as tape and abrasives; and other specialized product uses, such as graphics and identification. Customers typically convert and transform base papers and film into finished rolls and sheets by adding adhesives, coatings, and finishes. These transformed products are then sold to end-users.
The company’s products are generally used in markets that are directly affected by economic business cycles. Certain market segments, such as digital transfer papers used in small/home office and consumer applications are relatively stable.
The technical products business relies on a team of direct sales representatives and customer service representatives to market and sell a large majority of its sales volume directly to customers and converters.
The technical products business has more than 1,000 customers worldwide. The distribution of sales in 2021 was 45 percent in Europe, 38 percent in North America, and 17 percent in Asia, Latin America, and Africa.
Fine Paper and Packaging
The company’s fine paper and packaging business is a leading supplier of premium printing, packaging, and other high-end specialty papers predominantly in North America. These products are used in high-end commercial printing services, corporate identity packages, and advertising collateral. The company’s premium packaging business includes products, such as food and beverage labels and high-end packaging materials, such as folding cartons and box wrap used for luxury retail goods. In addition, the company produces wide format applications used for display graphics and indoor/outdoor signage. Bright papers are generally used by consumers for flyers, direct mail and packaging.
The fine paper and packaging business has over 550 customers worldwide. The fine paper and packaging business sells its products in a variety of channels, including authorized paper distributors, converters, major national retailers, specialty business converters, and direct to end-users. Sales to distributors account for approximately 40 percent of net sales in the fine paper and packaging business. During 2021, approximately 10 percent of the net sales of the company’s fine paper and packaging business were exported to markets outside North America.
Seasonality
Technical Products
In general, sales and operating income for the technical products business historically have been relatively stronger in the first half of the year (year ended December 2021) with reductions in the third quarter due to reduced customer converting schedules and in the fourth quarter due to a reduction in year-end inventory levels by the company’s customers. The order flow for the technical products business is subject to seasonal peaks for several of its products, such as the larger volume grades of specialty tape, abrasives, premask, and label stock used primarily in the downstream finished goods manufacturing process.
Fine Paper and Packaging
The operating results for both of the company’s businesses are influenced by the timing of its annual maintenance downs, which are generally scheduled in the third quarter.
Research and Development
The company invested in product research and development with spending of $8.3 million in 2021.
Intellectual Property
The company owns more than 100 granted patents and has multiple pending patent applications in the United States, Canada, Europe and certain other countries covering digital transfer paper, abrasives, filtration and medical packaging, and other paper application and media processing. The company also owns more than 150 trademarks with registrations in approximately 80 countries.
The company’s digital transfer patents have contributed to establishing the technical products business as a leading global supplier of digital transfer papers through its highly recognized JET-PRO, JET-OPAQUE, TECHNI-PRINT, LASER-1-OPAQUE, and IMAGE CLIP brands. The company adds even more depth and strength to its technical products portfolio with the well-recognized dye-sublimation JETCOL, JET-X and XTREME brands, as well as its TEXCOL brand, which enables industrial transfer on natural substrates, supported by a pending patent. The KIMDURA and MUNISING LP trademarks have also made a significant contribution to the marketing of synthetic film and clean room papers for its technical products business. In the Abrasives category, the DURAFLAT trademark has helped Neenah expand its presence into more durable, heavier weight backers.
The Neenah signature portfolio includes market leading brands, such as CLASSIC (including CLASSIC CREST, CLASSIC Linen, CLASSIC Laid, CLASSIC COLUMNS, CLASSIC Stipple, CLASSIC Techweave and CLASSIC Cotton), ASTROBRIGHTS, ENVIRONMENT, ROYAL SUNDANCE, UV/ULTRAII, TOUCHE, NEENAH Cotton, SOUTHWORTH and many more. The company’s fine paper and packaging business provides unique and sustainable packaging papers, as well as custom solutions for premium packaging needs. With brands that stand for quality and consistency, such as NEENAH Folding Board, NEENAH Box Wrap, ESTATE LABEL, BELLA Label and NEENAH IMAGEMAX Paper Card, the company’s fine paper and packaging business enables leading brands to deliver on their promise.
Neenah also has significant trademarks recognized in both the publishing and packaging markets, including SKIVERTEX, PELLAQ, CORVON, SENZO and KIVAR.
The GESSNER trademark similarly plays an important role in the marketing of Neenah’s filtration product lines for transportation filtration. To broaden the company’s filtration footprint, it has added the NEENAHPURE and NEENAHGUARD product lines for HVAC/Air Purification and Face Mask media. The NEENAHSILENCE trademark represents the company’s well-established products for the acoustic market.
Competition
Technical Products
The company’s technical products business competes in global markets with a number of large multinational competitors, including Ahlstrom-Munksjö, Hollingsworth & Vose Company, Mondi plc, and Loparex LLC. It also competes in some, but not all, of these segments with smaller regional manufacturers, such as Monadnock Paper Mills, Inc. and Potsdam Specialty Paper, Inc.
Fine Paper and Packaging
The fine paper and packaging business competes primarily in North America with Mohawk and Monadnock Paper Mills.
History
The company was founded in 2004. The company, a Delaware corporation, was incorporated in 2004. The company was formerly known as Neenah Paper, Inc. and changed its name to Neenah Inc. in 2018.
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