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Spunbond Drive Continues At BBA

November 17, 2005

Fiberweb, BBA Group’s nonwovens business, will invest $25 million in adding a 20,000 meter per year Reifenhauser 4 spunbond production line at its Norrköping, Sweden nonwovens facility. The 5.2 meter line, which will replace existing technology and add 50% to the site’s capacity, will mainly target the hygiene market with high-quality, ultra-lightweight fabrics. The investment underlines Fiberweb’s commitment to serve its customers with leading-edge production technology and to meet the challenge of market growth and competitiveness.    

The Sweden investment reinforces Fiberweb’s commitment to the spunbond market which was also proven through its recent doubling of spunbond manufacturing capacity in San Jose Iturbide, Mexico. Additionally, further moves to rationalize older capacity and add leading-edge technology may be expected in the Americas and Europe shortly, with expansion in Asia also a high priority for Fiberweb.

“I am delighted that we can accelerate the implementation of our strategy in hygiene markets with this investment,” said CEO Daniel Dayan. “Fiberweb is going to remain market leader in this field – competitive in standard products and leading in innovation.  Our Swedish site has been a crucial component of our unique worldwide production network and this investment secures its future as an outstanding supplier to Northern European customers.  As we look forward to the pending separation from BBA, as announced last week, Fiberweb can be seen continuing to develop its business; serving customers and delivering excellent returns for shareholders.”

In other news, earlier this month BBA Group announced its intent to find a buyer for its £700 million nonwovens business. BBA executives have indicated the other arm of the business, Aviation Services, which provides cargo and ground handling for 95 airports worldwide, will be better positioned without the Fiberweb division. The separation is expected to occur within the next six months.

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