Fibertex Personal Care is investing approximately $40 million to add new lines at its sites in Malaysia and the U.S. The Malaysian site will be expanded with the addition of a specialty nonwovens line while a printing line will be added to the U.S. site in Asheboro, NC. Both lines are expected to begin operations in the second half of 2021.
“Both of our business areas – nonwovens and print on nonwovens – are experiencing an increase in demand for specialty products and services,” says Mikael Staaal Axelsen, CEO. “We have a strong position in these markets due to our portfolio. Combined with a steady growth in the Asian market, rising demand for print in the American market, and a changed market dynamic caused by COVID-19 makes the timing of the expansions just right.”
Fibertex Personal Care currently operates five lines at two sites in Malaysia, which make about 90,000 tons of capacity. Its most recent line came onstream in mid-2017. Increased wealth and growth in the Asian middle class segment is leading to growth in the hygiene market of approximately 10%.
Meanwhile, in the U.S. Fibertex Personal Care introduced print production three years ago and continues to experience increased demand for printing on nonwovens. The company began print production through a joint venture Innowo Print in Germany in 2008. It purchased a full stake in the company in 2014 and currently has operations in Germany, Malaysai and the U.S.
“The introduction of print production in the U.S. three years ago was an important strategic milestone for us, and as expected the market now demands new capacity, “Axelsen says. “This gives us the opportunity to engage in more development projects with our customers. We have the skills and soon the capacity.”