FilSpec, a Canada-based yarn spinner, is looking to expand globally as it upgrades its two plants in North America. By John McCurry.

Born out of the remnants of the Canadian yarn division of Dominion Textile, FilSpec has gradually grown to be a significant North American supplier of high-tech yarns. While the company can trace its roots back 64 years, it has operated under the FilSpec name for just 14 years.


FilSpec has gradually grown to be a significant North American supplier of high-tech yarns

Around 60% of Filspec’s production goes to an assortment of customers in the knitting sector. Performance socks is a big market and other end-use knit products include protection gloves, base layers and underwear. These areas are direct customers for FilSpec.

“Socks and protection gloves are not commodity products, but they are something you use, and they wear out over time,” says Dominique Quintal, executive vice president of sales and marketing, FilSpec.

“We have a lot of repeat business in these two programmes. There are plenty of brands and lots of competitors. You have to continually bring new solutions to the market, otherwise, it’s just a price war.”


Dominique Quintal, executive vice president of sales and marketing, FilSpec

Facilities and applications

FilSpec operates two manufacturing facilities – its original plant in Sherbrooke, Quebec, Canada, and another facility in Ellerbe, North Carolina, US, which the company acquired back in 2009 to serve the US military market.

Sherbrooke is a 330,000 sq ft plant that offers five spinning technologies – ring, air jet, open end, Dref and Vortex. The 175,000 sq ft Ellerbe plant features ring spun technology. Together the two plants have a capacity of up to 300,000 pounds per week.

FilSpec describes the sectors it serves as automotive, industrial, furniture, smart yarn, protection, aeronautics, athletic, medical and military. Furniture applications include awnings, outdoor furniture, and bed and mattress fire protection wrappers. Industrial uses include protective clothing, filtration fabrics, headgear, ropes, and alternative energy. Medical applications include compression stockings, medical uniforms and hospital bed smart fabrics with sensors.

Quintal attributes the company’s success to hard work and its efforts to recruit business. He notes that the yarn spinner’s diverse manufacturing capabilities have made it a ‘one-stop-shop’ for technical markets. The focus is on growth markets.

Investment

FilSpec is investing heavily in its two mills, spending nearly CA$4m during its current fiscal year to increase and diversify its capacity. This includes installation of its first Vortex spinning machine this summer, with a second installation scheduled for the fourth quarter of this year. FilSpec USA in Ellerbe is increasing capacity of core spun yarns. This follows major investments in spinning equipment for Sherbrooke in 2010 and 2012.

FilSpec is accomplishing its capacity surge without adding employees or square footage to its plants. To supplement its two manufacturing operations, it also has plans to develop partnerships with other spinners in Mexico and later, in Europe. Quintal describes the effort as spreading FilSpec’s value proposition across different territories.

Performance wear

When asked to pinpoint a market that has strong potential, Quintal is quick to serve up performance wear as an example. Numerous brands, all wanting to be different, offer a significant innovation pipeline source.

“This is great for us because the brands are looking for new benefits and new technologies. We have to be able to sustain innovation and get it out at the right time.”

Within that market, performance socks is another area of growth. Here, too, there are many brands, and many are driven by specific applications.

“Manufacturers are not just making a sock, they are making something that will take care of feet, blood circulation, or something that fits in with lifestyles. A single player, or even just two major players, do not drive this market. In every country in the world, there are a few sock manufacturers. It’s probably the best low-hanging fruit market to get into a new territory.”

Chasing the sock market is a matter of finding the best fit. Being a supplier of high-tech yarns, FilSpec can pursue smaller niche manufacturers, Quintal says. If you add them all up, it’s not a huge market in terms of volume, but it is a high-value market. FilSpec’s sock customers include Darn Tough Vermont, Thorlo and Wigwam in the US. In Europe, Lorpen, a Spain-based maker of technical socks, is a customer.

Global expansion

Around 80% of the spinner’s customers are in North America, including some production done in Central America through the CAFTA programme. FilSpec also has a foothold in South America, which offers huge potential, and has significant customers in Australia and Vietnam. Mexico has also been an important market. FilSpec Mexico was established in Puebla, Mexico in early 2017, and the company will exhibit for the second time at the Exintex Trade Fair this October. FilSpec Centro America was formed in June 2017 in San Salvador, El Salvador. This sales office also provides technical support to CAFTA-DR member countries.

In total, FilSpec ships to more than 50 countries around the globe, but the big market expansion is coming from across the Atlantic.

“We are just starting in Europe, but within three years, probably 15% of our business will come from Europe,” predicts 333Quintal, adding that FilSpec plans to establish a sales office in Europe next year.