Fiberweb is in advanced discussions with leading Brazilian spunbond producer Fitesa and its parent company Petropar, in respect of the establishment of a 50/50 joint venture focused primarily on the market for hygiene fabrics for use in diapers and feminine care products in the Americas.
Such a joint venture would comprise Fitesa, the third largest producer of spunbond nonwovens in South America at its site at Gravatai, Brazil and all of Fiberweb's spunbond facilities in North America, specifically at Queretaro, Mexico and Washougal, USA, which together are currently the fourth largest spunbond producer in North America.
Fiberweb believes that the joint venture would be the second largest producer of spunbond nonwovens in the Americas and would enjoy a leading asset and technology base with potential for further development.
The joint venture plans to expand its operations in the US, through investment in new spunbond capacity. Completion of any such transaction would require various consents, including approvals from the boards of both parties and from the shareholders of both Fiberweb and Petropar. There can be no certainty that such a transaction will be completed or about the likely timetable for completing negotiations and obtaining consents.
Fitesa is one of two major Brazilian spunmelt manufacturers which announced major moves into the US market during 2008.
The company said it would invest $120 million in new lines to come onstream in late 2009 at Laurens County, South Carolina, while Companhia Providencia announced a $120 million move into North America with plans to install two Reicofil 4 lines with a combined capacity of 40,000 tonnes at Statesville, North Carolina,. The first line is expected to start up during 2009 and the second early in 2010, and the company has an option to acquire a further two Reicofil lines in the future.