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IVL, Huvis to enter JV for low melting fibre plant in US
17
Jan '18
Courtesy: Indorama Ventures
Courtesy: Indorama Ventures
Indorama Ventures Limited (IVL), a global chemical producer, and Huvis Corporation (HC) of South Korea, will establish a 50:50 joint venture (JV) for the development, construction and operation of a low melting fibre (LMF) plant in the US. The location is being finalised and JV is expected to be established in 2018, and will be operational in 2019.

The decision to form a joint venture builds upon Indorama Ventures’ successful feedstock integration strategy and a continued focus on expanding High Value-added (HVA) portfolio. The JV will leverage Huvis’s best-of-breed technology and its strong customer base in the region as well as Indorama Ventures’ global management capabilities and its strong manufacturing and cost position. With this joint venture, both companies will be able to offer the best value to customers through depth and scale using the new company’s combined capabilities and expertise. Customers will be assured of better security of supply and excellent service.

The new state-of-the-art plant will manufacture low melting fibre, with an annual capacity of 60,000 tonnes. LMF is commonly used as a binder fibre in core-sheath constructions to produce HVA applications for automotive and industrial composites, such as wadding, insulation, filtration, automotive acoustic insulation material and other products where heat is used to bond the fibres. The initial volumes of LMF will be sold in the US, with its new low tax environment and the potential to significantly expand its scope into neighboring regions over time.

"We are delighted to have the opportunity to partner with Huvis, and looking forward to further develop a strong relationship. Our partnership will be a strategic step for both Indorama Ventures and Huvis to emerge as a regional leader and position us well to take advantage of the robust growth potential in the region. This is an exceptional opportunity for both companies to provide unique value for customers, and bring new exciting fibers and composites solutions to market," said  Aloke Lohia, group CEO of Indorama Ventures said.

"We are so pleased to work with Indorama Ventures to build stronger market presence in North America, one of our core markets for LMF business. As one of leaders in LMF, we are pursuing 'Glocalisation strategy' to better serve our key customers’ needs based on more efficient and cost-competitive platform. We will continue to collaborate and extend our relationship with Indorama Ventures to seek more synergies in other interesting polyester fibre markets with strong growth potential," Shin, You Dong, CEO of Huvis, said. (RR)

Fibre2Fashion News Desk – India


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