Speciality fabric manufacturer Fiberweb is in advanced discussions with Brazilian spunbond producer Fitesa and Fitesa's parent company Petropar, over the establishment of a  joint venture focused on the market for hygiene fabrics for use in diapers and feminine care products in the Americas.

Fiberweb said it believed that the joint venture would be the second largest producer of spunbond nonwovens in the Americas and would enjoy a leading asset and technology base with potential for further development. The coming together would comprise Fitesa, the third largest producer of spunbond nonwovens in South America at its site at Gravatai, Brazil and all of Fiberweb's spunbond facilities in North America. Those sites would specifically include Queretaro, Mexico and Washougal, US, which together are currently the fourth largest spunbond producer in North America.

Talks over the deal are believed to be looking at plans to expand operations in the US by investing in new spunbond capacity. Fiberweb noted that the deal still needed the consent of shareholders on both sides and that there was no certainty it would complete.

Source: Smallcapsnews.co.uk