01.16.18
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 U.S. 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 60,000 tons of LMF, which 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., 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 its high value added 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.
Aloke Lohia, Group CEO of Indorama Ventures says, “We are delighted to have the opportunity to partner with Huvis and are looking forward to further developing 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.”
“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," says Shin YOu Dong, Huvis CEO. "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.”
The new state-of-the-art plant will manufacture 60,000 tons of LMF, which 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., 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 its high value added 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.
Aloke Lohia, Group CEO of Indorama Ventures says, “We are delighted to have the opportunity to partner with Huvis and are looking forward to further developing 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.”
“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," says Shin YOu Dong, Huvis CEO. "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.”
