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Fibertex buys additional stake in Fibertex South Africa

10 Mar '15

2 min read

Fibertex Nonwovens said it has acquired 48.2 per cent additional stake in Fibertex South Africa and simultaneously also increased manufacturing capacity.

Fibertex South Africa was co-founded in 2010 and jointly owned by Fibertex Nonwovens, The Investment Fund for Developing Countries (IFU) and a South African company, Safyr.

“Fibertex Nonwovens has increased its ownership interest in Fibertex South Africa from 26 per cent to 74.2 per cent by purchasing the 48.2 per cent stake from Safyr,” it informed in a press release.

The transaction also includes the investment in a second state-of-the-art needlepunched production line, and the simultaneous purchase of the Safyr fibre line, and additional land and buildings.

The Investment Fund for Developing Countries (IFU) has maintained its stake at 25.8 per cent and will invest accordingly.

“The transaction will create an important platform for the future development of Fibertex Nonwovens in Africa,” Fibertex said.

This is a strategic initiative and Group CEO Jorgen Bech Madsen sees huge potential in having local production in South Africa.

Fibertex South Africa has experienced significantly increased demand not only for products for the growing South African automotive industry and infrastructure programs, but also industrial applications.

The CEO for Fibertex South Africa, Chris O´Neill, sees the capacity expansion as an important milestone for the company as this is in line with the strategies and growth objectives of the company.

The increased investment in state-of-the-art production capacity not only increases jobs in an area with high unemployment but also proves that South Africa is an attractive location for world class production. (AR)

Fibre2fashion News Desk - India