Indorama and Huvis Form US Fiber JV
Thailand’s Indorama Ventures, the world’s biggest producer of PET, has agreed with South Korean fibers company Huvis to establish a 50:50 joint venture in the US.
The jv will develop, build and operate a 60,000 t/y low melting fiber (LMF) plant. A location is currently in the process of being finalize. The plant is scheduled to be operational in 2019, subject to the closing of various agreements and regulatory approvals.
LMF is commonly used as a binder fiber in core-sheath constructions for high-value products in automotive and industrial composites, such as wadding, insulation and filtration, and others where heat is used to bond the fibers.
Initial volumes from the plant will be sold in the US, with the potential to significantly expand into neighboring regions over time. According to Indorama, sales of LMF are growing at a rate of 8% per year as manufacturers convert from conventional chemical adhesives to a thermo-bonding method.
“Our partnership will be a strategic step for both Indorama Ventures and Huvis to emerge as a regional leader and position us well to take advantage of the robust growth potential in the region. This is an exceptional opportunity for both companies to provide unique value for customers and bring new exciting fibers and composites solutions to market,” said Aloke Lohia, Group CEO of Indorama Ventures.
Shin You Dong, CEO of Huvis, added that the Korean company will continue to collaborate and extend its relationship with Indorama to seek more synergies in other interesting polyester fiber markets with strong growth potential.
