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UK : Nonwovens producer announces two Asian joint ventures

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Fiberweb plc (Fiberweb) is pleased to announce that it has entered into two separate Joint Venture agreements in China and India which in aggregate are expected to contribute 0.3 pence to earnings per share from 2010.

In China, Fiberweb has agreed to invest $2.5m of cash into a 30 year joint venture with Tianjin Hengguan Nonwoven Company Limited, a Chinese spun-bonded polyester manufacturer. Fiberweb will own 65% of the venture which will exploit Fiberweb's strong franchise in polyester spunbond fabrics.

In India, Fiberweb has signed an agreement to set up a joint venture with a group of local individual investors which will establish the first premium geotextile manufacturer in India, exploiting Terram's leading products and strong brand.

This envisages Fiberweb will upgrade and sell its currently idled line from Terram in Pontypool, Wales, to the joint venture and grant a license to the trademark Terram.

Fiberweb will own 26% of the venture and will receive £1.35 million in cash for the line and the license. The upgraded Terram line is expected to be relocated to a new site by Q1 2009.

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