Fiberweb Announces Supply Agreement with Procter & Gamble
11 December 2006
Fiberweb announces today that it has signed an agreement with Procter & Gamble (P&G) extending the global supply arrangements of various spunbond nonwoven products by Fiberweb to P&G, primarily for consumer goods applications. The agreement runs for several years, and is for the supply of in aggregate around 250,000 metric tonnes of product worth some £330 million of revenue. This agreement successfully concludes the tender process referenced in Fiberweb's recent Prospectus.
P&G, which has market leading global positions in baby care, laundry products and feminine care, has been Fiberweb's largest customer for many years. This further agreement represents significant growth in Fiberweb's supply relationship with P&G for these products and cements a strong relationship based upon customer-centred innovation, high-quality global supply arrangements and a competitive value proposition.
Investment to support this contract was already included in Fiberweb's expectations at the time of the demerger. However, Fiberweb will accelerate incremental P&L costs of £2.5m associated with this new supply arrangement into 2007, earlier than originally expected.
Fiberweb's Chief Executive, Daniel Dayan, commented: "I am delighted that we have been able to meet P&G's demanding commercial requirements to secure a mutually advantageous agreement of this scale and global scope. Fiberweb has embarked on an ambitious turnaround and growth strategy and the strong backing that this agreement represents from our largest customer provides a solid base for our hygiene business."
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