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Dralon Kelheim To Form Joint Venture

Germany-based Dralon GmbH - a manufacturer of acrylic fiber - and Germany-based Kelheim Fibres GmbH - a manufacturer of acrylic, specialty viscose and cellulosic fiber - have signed a letter of intent to establish a joint venture company for the production of spun-dyed (pigmented) and technical acrylic fiber.

According to Robert Gregan, general manager, Kelheim Fibres, the joint venture will comprise all of Kelheim's acrylic business. Dralon's current business will not be included, but Dralon will contribute its innovation capability, global market presence and cost leadership.

"Both parties do see significant growth potential and will invest in expanding capacities as soon as possible," Gregan said. "For the Kelheim employees, this is a significant step towards the strategic strengthening of the business in cooperation with another Germany-based company providing a platform for growth."

"[Dralon] will contribute all our strength and particularly our historic and current know-how in this area and will lead the business with our global position," said Franz J. Buter, managing director, Dralon. As one of the market leaders in textile acrylic fibers, this is an important complementary move for us. "

May 2005