Bangkok-based Indorama Ventures Public Co. Ltd. (IVL) has announced its intent to enter into a 50:50 joint venture with South Korea-based Huvis Corp. for the development, construction and operation of a low melting fiber (LMF) plant in the United States.
The companies are planning a 60,000 ton annual capacity, state-of-the-art facility in a location yet to be determined. The goal is to have the new facility operational in 2019.
Initial volumes produced are targeted to the U.S. market as a binder fiber in core-sheath constructions for use as bonding materials in the automotive and industrial high-value-added materials markets. Over time, the business will be expanded to supply Canada and Mexico.
“Our partnership will be a strategic step for both Indorama Ventures and Huvis to emerge as a regional leader and position us well to take advantage of the robust growth potential in the region,” said Aloke Lohia, IVL group CEO. “This is an exceptional opportunity for both companies to provide unique value for customers, and bring new exciting fibers and composites solutions to market.”
“We are so pleased to work with Indorama Ventures to build stronger market presence in North America, one of our core markets for LMF business,” said Shin, You Dong, Huvis CEO. “As one of leaders in LMF, we are pursuing ‘Glocalization strategy’ to better serve our key customers’ needs based on more efficient and cost-competitive platform. We will continue to collaborate and extend our relationship with Indorama Ventures to seek more synergies in other interesting polyester fiber markets with strong growth potential.”