Fibertex Personal Care processes large volumes of material resulting in high energy consumption and significant energy costs. With little purchasing expertise in energy, the company had used a procurement model focused on successive purchases over a 2 to 3 year horizon, but the model made it difficult to take advantage of market changes. The challenge was to find a more efficient and cost-effective way to purchase energy. Fibertex Personal Care wanted a purchasing model that could keep pace with the market, protect against escalating prices, and at the same time be flexible enough to take advantage of favourable market rates, to keep them ahead of their competition.
Fibertex Personal Care is a global textile company based in Aalborg, Denmark with large non-woven production facilities in Malaysia and print factories in Germany, Malaysia and the USA. The company produces non-wovens – which is textile made from fibres that are bound together in a proprietary process. The unique material is used in the production of diapers, incontinence aids, and feminine hygiene products destined for an international market.
Fibertex Personal Care recruited Kinect Energy Group to provide them with direct market access. Through a structured risk assessment process, Fibertex Personal Cares preferences were identified and validated, and formed the basis of a portfolio management strategy. With a combination of continuously updated reporting via Kinect Online and regular status meetings, Fibertex Personal Care now has the information they need to control costs – without needing in-house energy specialists.
We provide Fibertex Personal Care with energy procurement and the sale of financial contracts for hedging offering the company a dynamic energy management program, which to date has provided savings of 15% energy costs when compared to the previous year, or €0.4 million.
‘Through collaboration with Kinect Energy Group, we’ve achieved professional management of our electricity purchases with significant savings as a result.’
Peter Reis, Supply Chain Manager, Fibertex Personal Care