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Ahlstrom posts near flat sales in Q3
31 Oct '08
6 min read
Acquisitions and new investment decisions:
On August 29, 2008 Ahlstrom announced that it would acquire the remaining 40% of the joint venture formed with Votorantim Celulose e Papel (VCP) in Brazil. Ahlstrom now owns 100% of the shares. The acquisition is in line with Ahlstrom's strategy to expand its operations in the fast-growing markets in Brazil, Russia, India and China.
The joint venture between Ahlstrom and Votorantim Celulose e Papel (VCP) was established in September 2007. It includes a specialty papers production facility located in the same site as the pulp mill of VCP in Jacarei, Brazil, close to São Paolo. Ahlstrom held 60% and VCP 40% of the shares in the joint venture.
The terms of the agreement included an option for Ahlstrom to purchase the remaining share in the joint venture held by VCP within two years from the original transaction. The total value of the acquisition is approximately EUR 116 million.
Organic growth investment decisions:
Ahlstrom made no new major organic investment decisions during the third quarter of 2008. An update on the status of previously announced major organic investments is provided below.
Investment start-ups:
The building of Ahlstrom's two new dust filtration production lines, one in Wuxi, China and one in Bethune, South Carolina, the USA, has proceeded as planned. The Wuxi line started operations during the second quarter of this year and the Bethune line in the third quarter of 2008.
The new glassfiber tissue production plant established in 2007 in Tver, Russia, is ramping up for production during 2008. The plant will primarily serve the Russian building and composites materials industries, and will strengthen Ahlstrom's position as a leading developer and manufacturer of specialty glassfiber tissues.
The building of Ahlstrom's new food nonwovens production line in Chirnside, the UK, has proceeded on schedule, and production is starting during the fourth quarter of 2008. The new line utilizing spunmelt technology will primarily serve the growing infusion products market with next generation products used e.g. in teabags.
In Paulinia, Brazil, Ahlstrom is building a nonwoven wiping fabrics production line to start production during the fourth quarter of 2008. The investment consists of a building and machinery. The new production line will utilize spunlace technology and its main customers operate within the household and industrial wipes sectors in Latin America.
Ahlstrom is establishing a new medical nonwovens plant in Gujarat, India, with operations estimated to start in the first quarter of 2010. The new plant will manufacture a full range of spunmelt fabrics with the main focus on the medical fabrics market and the site also enables future expansions of Ahlstrom's business in India. The facility will be located in the Mundra Special Economic Zone (SEZ).
Outlook:
The demand for a major part of Ahlstrom's products has still been growing and the company expects its full-year net sales to increase from that of 2007.
On August 29, 2008 Ahlstrom announced that it would acquire the remaining 40% of the joint venture formed with Votorantim Celulose e Papel (VCP) in Brazil. Ahlstrom now owns 100% of the shares. The acquisition is in line with Ahlstrom's strategy to expand its operations in the fast-growing markets in Brazil, Russia, India and China.
The joint venture between Ahlstrom and Votorantim Celulose e Papel (VCP) was established in September 2007. It includes a specialty papers production facility located in the same site as the pulp mill of VCP in Jacarei, Brazil, close to São Paolo. Ahlstrom held 60% and VCP 40% of the shares in the joint venture.
The terms of the agreement included an option for Ahlstrom to purchase the remaining share in the joint venture held by VCP within two years from the original transaction. The total value of the acquisition is approximately EUR 116 million.
Organic growth investment decisions:
Ahlstrom made no new major organic investment decisions during the third quarter of 2008. An update on the status of previously announced major organic investments is provided below.
Investment start-ups:
The building of Ahlstrom's two new dust filtration production lines, one in Wuxi, China and one in Bethune, South Carolina, the USA, has proceeded as planned. The Wuxi line started operations during the second quarter of this year and the Bethune line in the third quarter of 2008.
The new glassfiber tissue production plant established in 2007 in Tver, Russia, is ramping up for production during 2008. The plant will primarily serve the Russian building and composites materials industries, and will strengthen Ahlstrom's position as a leading developer and manufacturer of specialty glassfiber tissues.
The building of Ahlstrom's new food nonwovens production line in Chirnside, the UK, has proceeded on schedule, and production is starting during the fourth quarter of 2008. The new line utilizing spunmelt technology will primarily serve the growing infusion products market with next generation products used e.g. in teabags.
In Paulinia, Brazil, Ahlstrom is building a nonwoven wiping fabrics production line to start production during the fourth quarter of 2008. The investment consists of a building and machinery. The new production line will utilize spunlace technology and its main customers operate within the household and industrial wipes sectors in Latin America.
Ahlstrom is establishing a new medical nonwovens plant in Gujarat, India, with operations estimated to start in the first quarter of 2010. The new plant will manufacture a full range of spunmelt fabrics with the main focus on the medical fabrics market and the site also enables future expansions of Ahlstrom's business in India. The facility will be located in the Mundra Special Economic Zone (SEZ).
Outlook:
The demand for a major part of Ahlstrom's products has still been growing and the company expects its full-year net sales to increase from that of 2007.
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