Fitesa has acquired 51% of spunbond nonwovens maker CNC International. The Rayong, Thailand-based company largely serves the Southeast Asian markets. The company operates two sites in Rayong (Bangkok region, Thailand) and one sales office in Tokyo (Japan) and will have its name changed to FitesaCNC. The joint-venture will focus on the hygiene market – in line with the rest of the Fitesa business.
CNC’s last major investment was a 24,000-ton Reicofil 4 production line in 2013 and its current capacity is thought to be about 40,000 tons per year. Owned by the CPPC Group, which falls under the umbrella of Charoen Pokphand Group (CP), the largest agriculture-based conglomerate in Thailand, CNC was founded in 1994 when CPPC decided to diversify into nonwovens.
Originally founded as a 50/50 joint venture company between Fiberweb and CPPC, CPPC purchased all of the shares of CNC in late 2006. At the time of this purchase, executives referred to the move as a clear example of its intention of having CNC grow along with its key customers in the region.
Fitesa did not comment on the value of the transaction nor the company’s revenues, but executives did say the acquisition represents the company’s first step into one of the world’s fastest growing regions for the spunbonded nonwovens and hygiene products. Owned by Petropar, Fitesa has spunmelt assets in North and South America as well as Europe. Until the CNC acquistion, the company’s only Asian operation was in China where it has air through bonding and airlaid capabilities.