Polymer Group, Inc. reports completion of its transaction to purchase a 40 percent minority stake in Dominion Nonwovens Sudamericana, S.A. (PGI Argentina) from its partner, Guillermo E. Kraves with terms of the transaction undisclosed.
PGI Argentina has been operating as a joint venture since 1997. The company is located near Buenos Aires, Argentina and began operations with multi-beam spunmelt lines which serve the hygiene and industrial markets of the Mercosur region. PGI then purchased a majority share of the business in 1999 with a focus on growing business in the Mercosur region as part of its overall hygiene leadership strategy in Latin America. In 2003, PGI added an extrusion line and most recently installed new wide-width, multi-beam line which features the latest spunbond technology and has a capacity of over 15,000 metric tonnes per year.
PGI’s chief executive officer, Veronica (Ronee) Hagen, commented on the purchase saying, “This investment is a signal of our confidence in the future of our operations in Latin America and the strategic significance of the operations in Argentina, We have successfully positioned ourselves with supply in each of the major trade regions of Latin America and bringing the Argentina joint venture fully into the PGI ownership structure gives us the ability to fully capitalize on future growth opportunities.”
Roland Dominguez, vice president and general manager for PGI’s Latin American operations also commented, “The people who make up the business of PGI Argentina have worked hard to ensure the business is positioned for success and capable of world-class operations. The investment PGI is making in this business is a sign of confidence in their ability to continue to deliver superior value to our customers in the region.”
Polymer Group, Inc., (PGI) is one of the world’s leading producers of nonwovens and a global developer, producer and marketer of engineered materials. With a broad range of process technologies in the nonwovens industry, PGI supplies leading consumer and industrial product manufacturers. The company operates 14 manufacturing and converting facilities in 8 countries throughout the world.