Disposal of interest in CNC International Company Limited
24 November 2006
Fiberweb plc, one of the largest groups by sales operating globally in the nonwovens industry , is pleased to announce that it has completed the sale of its 50% interest in CNC International Company Limited (CNC), Thailand to its joint venture partner CPPC Public Company Limited for total proceeds of US $10.25 million (circa £5.4 million) in cash. The proceeds from the sale will be used to reduce Group debt.
CNC, which is based in Thailand, is a producer of nonwoven materials for hygiene and medical markets. Fiberweb will continue purchasing materials from CNC for certain of its Asian operations and customers.
While the CNC joint venture has been successful for both partners over many years, the interests of Fiberweb and CPPC have gradually diverged and it has become clear that CNC would benefit from being controlled by a single shareholder.
Daniel Dayan, Chief Executive of Fiberweb, commented: “As Fiberweb begins its existence as an independent public company and continues to progress its turnaround strategy, all aspects of the business will be examined. While CNC has been a successful joint venture, there are many other opportunities for Fiberweb to grow its business in Asia.”
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Enquiries:
Fiberweb plc
0208 439 8594
Daniel Dayan, Chief Executive
Simon Bowles, Chief Financial Officer
Weber Shandwick Square Mile
0207 067 0700
Ian Bailey / Nick Dibden / James White