16 January 2018
DETAILS
Indorama Ventures Public Company Limited (IVL),
a global chemical producer, and
Huvis Corporation (HC) of South Korea
announced their intention to establish a 50:50 joint venture
for the development, construction and operation of
a Low Melting Fiber (LMF) plant in the US.
The location is being finalized and the joint venture
is expected to be established in 2018,
and will be operational in 2019,
subject to various agreements and regulatory approvals
as may be applicable.
The new state-of-the-art plant will manufacture
Low Melting Fiber (LMF),
with an annual capacity of 60,000 tonnes.
LMF is commonly used as a binder fiber
in core-sheath constructions to produce
HVA applications for automotive and industrial composites,
such as wadding, insulation, filtration,
automotive acoustic insulation material
and other products where heat is used to bond the fibers.
The initial volumes of LMF will be sold in the U.S.A,
with its new low tax environment and the potential
to significantly expand its scope into neighboring regions over time.
LMF sales are expanding at a rate of 8% a year
as manufacturers have been converting
from conventional chemical adhesives to a thermo-bonding method.
The decision to form a joint venture builds upon
Indorama Ventures’ successful feedstock integration strategy
and a continued focus on
expanding High Value-added (HVA) portfolio.
The JV will leverage
* Huvis’s best-of-breed technology
and its strong customer base in the region as well as
* Indorama Ventures’ global management capabilities
and its strong manufacturing and cost position.
With this joint venture, both companies will be able to offer
the best value to customers through depth and scale
using the new company’s combined capabilities and expertise.
Customers will be assured of better security of supply
and excellent service.
Mr. Aloke Lohia,
Group CEO of Indorama Ventures
“We are delighted to have the opportunity to partner with Huvis,
and looking forward to further develop a strong relationship.
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.”
Mr. Shin, You Dong,
CEO of Huvis
“We are so pleased to work with Indorama Ventures
to build stronger market presence in North America,
one of our core markets for LMF business.
As one of leaders in LMF, we are pursuing
“Glocalization strategy” to better serve our key customers’ needs
based on more efficient and cost-competitive platform.
We will continue to collaborate and extend our relationship with
Indorama Ventures to seek more synergies
in other interesting polyester fiber markets
with strong growth potential.”
Indorama Ventures Contacts
For investors:
Richard Jones
Tel: +662.661.6661 ext. 680
richard.j@indorama.net
For media:
Naweensuda Krabuanrat
Tel: +662.661.6661 ext. 247
naweensuda.k@indorama.net
Huvis Contact
For investors and media:
Jaehoon Lim
Tel: +82.2.2189.4791
jaehoon.lim@huvis.com
WWW.CHEMWINFO.COM BY KHUN PHICHAI
