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Fibertex Adds to Malaysian Operation

March 15, 2010

New line to add 25,000 tons to site.

Just months after announcing it would add a new beam to one of its lines there, Fibertex has said it will add a new, ultra-modern spunmelt line to its Malaysian operation. The $50 million investment will add approximately 25,000 tons to the facility, representing an 80% increase and adding 55 employees to the site.

“We have all the while been ready to expand further but we have of course also considered if the global economic downturn would affect the market growth in Asia,” said Mikael Staal Axelsen, president of Fibertex’s Personal Care Division. “However, as demand continues to grow almost explosively, we have launched the new investment so we can continue to meet the Asian demand for softer, lighter and very consistent products.”

Fibertex opened the Malaysian facility in 2003 and added a second line to the site in 2005. In September, Fibertex announced it would invest $7.5 million in adding a new beam on one of the lines. The new beam will be operational in the second half of the year while the new production line is planned to be complete within 18 months.

Jens Bjerg Sørensen, president of Schouw & Co., Fibertex’ owner, sees the investment as proof that Fibertex Personal Care has done the right thing in Asia: “Fibertex Personal Care produces against orders. So this expansion reflects the fact that there is demand for the products and that the success we have had with the investment in Malaysia from the beginning, continues,” he said. “With the current development in the Asian market, it is likely that in future we will increase our production capacity further in the region.”

Fibertex also operates three spunmelt lines in Aalborg, Denmark.