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Fibertex to invest DKK 400mn in new nonwoven line

27 Jan '16

2 min read

Danish nonwovens company, Fibertex Personal Care is investing DKK 400 million to expand production capabilities at its facility in Malaysia and thereby expand the company's capacity in Asia by more than 20 per cent.

As of date, the company has an annual capacity of 120,000 tons with 50,000 tons in Denmark and 70,000 tons in Malaysia, which corresponds to about 10 per cent of the consumption in the world.

In a press release, Fibertex said it holds a very strong position in the Asian market, which will now be strengthening with the new investment.

“In 2002, we were one of the first global manufacturers to establish a plant in Asia and we still benefit today, since we are among the three largest in the region,” Mikael Staal Axelsen, Group CEO of Fibertex Personal Care said.

Fibertex main products are spunbond and spunmelt, which are used as important applications in diapers, feminine hygiene and incontinence care products.

Fibertex Personal Care supplies its products to leading marketers and has also won several supplier awards from companies like Procter & Gamble, Ontex and Kimberley Clark.

Fibertex opines that the timing of the investment in the Asian market is right; since, while consumption of hygiene products in the West is showing a moderate increase of 1-2 per cent, it looks quite different in Asia.

“A growing number of people in the Southeast Asian countries, China and India are earning an income that enables them to focus more on personal hygiene, resulting in an Asian market growing about 10 per cent each year,” it added.

Currently Fibertex Personal Care has a total of seven production lines, and the eighth and new line will be the fifth line in Malaysia and will be fully operational by mid-2017.

However, as there is no space for further expansions at the existing site in Nilai, Fibertex Personal Care will establish a new site about 25 km south of the existing one.

“The new site can accommodate four or five lines, hence future expansions have already been taken into consideration,” Fibertex observed.

In 2014, Fibertex Personal Care's revenue amounted to almost DKK 1.8 billion and generated an EBIT of DKK 171 million. (AR)

Fibre2Fashion News Desk – India