BANGKOK, THAILAND: Indorama Ventures Public Company Limited (IVL) and Huvis Corporation (HC) announced their intention to establish a 50:50 joint venture for the development, construction and operation of a low melting fibre (LMF) plant in the US.
The location is being finalized and the joint venture (JV) is expected to be established in 2018 and will be operational in 2019.
The new state-of-the-art plant will manufacture low melting fibre (LMF), with an annual capacity of 60,000 tonnes. LMF is commonly used as a binder fibre 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 fibres.
The initial volumes of LMF will be sold in the US, with its new low tax environment and the potential to significantly expand its scope into neighbouring regions over time. LMF sales are expanding at a rate of 8 percent a year as manufacturers have been converting from conventional chemical adhesives to a thermo-bonding method.
The decision to form a JV builds upon Indorama Ventures’ successful feedstock integration strategy and a continued focus on expanding high value-added (HVA) 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.
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