News Flash

Fibertex reports good first half year overall

20 Aug '10

5 min read

The market position will be expanded and strengthened in areas of business growth and geographical growth markets. The newly-established factory in South Africa, which Fibertex co-owns with IFU, the Industrialisation Fund for Developing Countries and local business partners, has begun operations and is building up the market in a staged process.

Going forward, Fibertex Industrial Nonwovens intends to lift its competitive strength further and reduce its cost base by adding a larger production line to the production platform in the Czech Republic, which will be relocated from Denmark and upgraded. The project is expected to be fully implemented in the first half year of 2011.

Fibertex Personal Care
The strong revenue performance of H2 2009 continued into 2010 and Fibertex Personal Care is expected to have full capacity utilization in both Denmark and Malaysia in 2010, including from the expanded capacity added in May 2010 when a new spunbond beam on one of the production lines in Malaysia was brought into use.

Due to the constantly growing demand from Asia, Fibertex Personal Care has resolved to add a whole new production line at the factory in Malaysia. The move will increase capacity in Malaysia by 60%. The new line represents an investment of approximately DKK 300 million and is expected to become operational in H2 2011.

Fibertex Personal Care is very dedicated to product development, and the new line will enable the division to manufacture new products that can add value to customer end-products.

Outlook
Raw materials prices surged during the first half year of 2010, reaching record-high levels at the start of the third quarter.

As a result, Fibertex expects to realise revenue higher than the original forecast of approximately DKK 1.5 billion.

The surging raw materials prices add pressure on margins in the short term, but due to the full capacity utilization in Fibertex Personal Care, Fibertex upgrades its EBIT forecast to a range of DKK 115-135 million from DKK 100-125 million.

Fibertex Group

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