IVL, Huvis to enter JV for low melting fibre plant in US

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.

Fibre2Fashion News Desk – India