Fiberweb investments now control Terram

$3m raises stake to 65% of India joint venture

Fiberweb PLC has moved to take control of Terram India, the group’s geotextiles joint venture in Gujarat, according to a July 10 press release.

Fiberweb Geosynthetics will invest £2m ($3m USD) to increase its stake from 26% to 65%, the release said.

Terram India, based in a duty-free zone near Mundra, fully commissioned its manufacturing operations during 2012, using a Terram geotextile spunbond line relocated from Fiberweb’s Terram operations in the UK.

The release noted that Fiberweb says the investment will enable expansion at Terram India, including the addition of a value-added geocomposite manufacturing capability. Upon completion, Fiberweb will consolidate £3m ($4.5m USD) of debt associated with Terram India. The release said that the transaction is expected to be earnings-neutral in 2013 and accretive in 2014. Completion of all terms is expected by the end of July.

Source: Fiberweb PLC