Fiberweb in talks with Brazilian Co over spunbond JV Americas
15 May '09
1 min read
Fiberweb announces that it is in advanced discussions with leading Brazilian spunbond producer Fitesa and Fitesa's parent company Petropar, concerning 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.