UK-based Fiberweb Plc is hiking stake in its joint venture Terram India, from 26 per cent to 65 per cent, for $2.97 million (£2 million), thus gaining control in the business. On completion of the deal, the firm will consolidate 3 million pounds ($4.46 million) of debt associated with Terram India.
Terram India, a joint venture with Fiberweb Geosynthetics Ltd, manufactures non-woven geosynthetics for civil engineering and construction projects worldwide. It is located in a coastal industrial park near Mundra in Gujarat.
Fiberweb’s investment will enable expansion at the company, including the addition of value-added geocomposite manufacturing. It will further expand the facility by adding extra production processes and lamination capabilities.
“The purchase of these additional shares will increase Fiberweb’s ability to supply a wide range of Terram products to existing and new customers worldwide. This acquisition follows significant investment in innovation centres and logistics in Europe and Northern America, and will further enhance our well-deserved reputation as a complete and cost-effective solutions provider for geosynthetics customers,” said Daniel Dayan, CEO of Fiberweb.
Terram India was established in 2009 as an initiative of private investors, together with assets, technology transfer and investment from Fiberweb’s UK business. Manufacturing operations were fully commissioned during 2012, utilising a Terram geotextile spunbond line. Currently, the Indian JV caters to companies in the UK, the Middle East, South America, Africa, Asia and Australasia.
London-headquartered Fiberweb is a material technology firm whose materials can be found in many applications including filtration, civil engineering, medical products, railways, aerospace, buildings and agriculture. Fiberweb operates eight manufacturing sites globally.
(Edited by Sanghamitra Mandal)