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Expansion of Fibertex plant with new production line

12
Mar '10
The Personal Care division of the Aalborg based manufacturer of nonwoven is expanding its capacity in Asia with a new, ultra-modern production line at its plant in Malaysia. The investment of totally of USD 50 Million is in addition to an investment of USD 7.5 Million, which was initiated last year.

It is full speed ahead for Fibertex Personal Care in the Asian market. The company's plant in Malaysia has not yet completed the latest expansion of capacity before the management has decided to establish a new, ultra-modern production line to complement the two existing lines, which are producing around the clock for the Asian Hygiene Industry.

The investment of totally USD 50 Million is following an investment of USD 7.5 Million in a new S-beam, which was initiated last year and is expected to be fully operational in the second half of this year. The new production line is planned to be completed in eighteen months:

"With the new investment we will increase the capacity of the Malaysian plant by approx. 25,000 tonnes annually - an 80% increase of production capacity compared to today. At the same time, we expect to employ another 55 people", says CEO Mikael Staal Axelsen, Fibertex Personal Care. Both investments are part of Fibertex' strategy to keep up with demand in the Asian market while ensuring the plant's ability to continue to deliver high quality products:

"We have all the while been ready to expand further but we have of course also considered if the global economic downturn would affect the market growth in Asia. However, as demand continues to grow almost explosively, we have launched the new investment so we can continue to meet the Asian demand for softer, lighter and more appealing products".

Fibertex Personal Care, which is owned by the industrial group, Schouw & Co., supplies a wide range of spunbond and spunmelt nonwoven products for use in baby diapers, sanitary napkins, incontinence products and different products for the medical industry. The company is one of the world's leading and most innovative in its field and has received several awards for its innovation and its high level of service.

Fibertex Personal Care established the plant in Malaysia in 2003 to be able to serve the rapidly growing Asian market effectively. Today Fibertex Personal Care is among the largest nonwoven suppliers in its segment in the Asian market and the largest non-Japanese supplier in Japan.

President Jens Bjerg Sørensen, Schouw & Co. sees the investment as proof that Fibertex Personal Care has done the right thing in Asia:

"Fibertex Personal Care never produces to stock. So this expansion reflects the fact that there is demand for the products and that the success, we have had with the investment in Malaysia from the beginning, continues. With the current development in the Asian market it is likely that in future we will increase our production capacity further in the region".

The Malaysian plant currently has approx. 140 employees. At Fibertex Personal Care's plant in Aalborg three production lines are running around the clock. In total Fibertex Personal Care employs 270 people.

The Fibertex Group


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