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Expanding Production Facilities in Malaysia and the US
08.09.2020
PRESS RELEASE │ Schouw & Co.
With an investment of DKK 250 million in two production lines – a speciality nonwovens line in Malaysia and a print line in the US – the Danish Fibertex Personal Care Group strengthens its position as supplier of for the hygiene industry. The two production lines will increase the capacity in each of their respective business areas with more than 10% – both lines are expected to be running second half of 2021.
– Both of our business areas – nonwovens and print on nonwovens – are experiencing an increase in demand for speciality products and services. We have a strong position in these markets due to our portfolio. Combined with a steady growth in the Asian market, rising demand for print in the American market, and a changed market dynamic caused by COVID-19 makes the timing of the expansions just right, explains Group CEO Mikael Staal Axelsen, Fibertex Personal Care.
Speciality nonwovens line in Malaysia
Due to increased wealth and growth in the Asian middle-class segment, the market in Asia shows an annual growth rate of approx. 10%. This is leading to an increased demand for speciality nonwovens for baby diapers, sanitary napkins and adult incontinence care products.
– Our focus on offering the customers a broad selection of speciality products and services continues to be a high priority for our business―and as the leading nonwovens manufacturer in Asia, we will continue to invest in increasing capacity at our Malaysian site, says Mikael Staal Axelsen.
Print line in the US
In the US, Fibertex Personal Care experiences an increased demand for print on nonwovens. The company was first on the market to offer print directly on lightweight nonwovens for the hygiene industry, and has continuously established print lines in Germany, Malaysia, and recently in the US. Today, Fibertex Personal Care is the global market leader in this field.
– The introduction of print production in the US three years ago was an important strategic milestone for us, and as expected the market now demands new capacity. This gives us the opportunity to engage in more development projects with our customers. We have the skills and soon the capacity, says Mikael Staal Axelsen.
Timing of investments
Fibertex Personal Care is owned by the industrial conglomerate Schouw & Co. President Jens Bjerg Sørensen, Schouw & Co. adds:
– The ability to make investments in business areas with great potential―at the right time―is something we have worked with for many years. In our experience, continued investments in speciality products, differentiation, and global presence lead to the best results in the long run.
The investment does not affect the expectations for revenue and results in the current financial year. Fibertex Personal Care thus still expects to realize a 2020 revenue of about DKK 2.1 billion as well as a result (EBITDA) in the range of DKK 390-420 million.
For further information, please contact:
- Jens Bjerg Sørensen, President, Schouw & Co., tlf. +45 8611 2222
- Mikael Staal Axelsen, Group CEO, Fibertex Personal Care, tlf. +45 7229 9722
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