BANGKOK, THAILAND (Jan. 5, 12:30 p.m. ET) — Indorama Ventures Public Co. Ltd. (IVL) has agreed to buy 100 percent of FiberVisions Holdings LLC, a U.S.-based global manufacturer of specialty mono and bi-component fibers.
The deal, set to be completed by Jan. 6, would add approximately $454 million to its 2012 sales, according to IVL.
Duluth, Ga.-based FiberVisions has a total global capacity of more than 200,000 metric tons per year, with manufacturing plants in the United States, Denmark and China. FiberVisions also has a 50:50 joint venture with JNC, the major producer of bi-component fibers in Japan.
Approximately 75 percent of its capacity is within the non-cyclical hygiene space for branded makers of sanitary and feminine care products. The rest is from industrial and automotive sectors.
IVL Group CEO Aloke Lohia said: “As the largest producer of polypropylene staple fiber, FiberVisions complements our strength as the world's largest polyester producer and together we will increase our ability to satisfy customer needs in all parts of the world.”
He added: “IVL believes that the world has not fully utilized the potential of polyester in combination with other fibers. The industry is moving towards composites of polymers which address specific functionality and performance.
“There has been a vacuum in the R&D focus for such developments since the Western majors vacated the market. Most Asian producers have been harvesting the gains from the earlier developments without investing in future product pipelines.”
IVL has also acquired polyester fiber assets from Invista in the US and Mexico, and Trevira and Wellman International in Europe.