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Avgol invests in Indian business with relocation of SMMS line plus additional melt blown line in same location


Avgol invests in Indian business with relocation of SMMS line plus additional melt blown line in same location21/10/20

Strategic move sees nonwoven fabrics leader increase South Asia capacity

Avgol, the global leader in the manufacture of high performance nonwoven fabric solutions, has confirmed it is relocating an existing asset to India as part of an immediate strategic investment in the region.

In a statement today, (October 21), Shachar Rachim, CEO at Avgol said that this move is part of the company’s commitment to continue increasing its presence and service across India and South Asia.

“This strategic move positions our line rapidly at the heart of the local market,” said Mr Rachim. “There is a huge domestic demand for hygiene products in India and across the South East Asia region, but there are heavy tariffs on importing materials. The demand is already at 165% against local supply capacity. Our projections show that through regional organic growth, improved promotion of feminine health, and increased awareness of hygiene because of the coronavirus pandemic, demand is only going to increase.”

Avgol, an Indorama Ventures Limited company, leads the global hygiene market with the most comprehensive range of ultra-lightweight spun-melt nonwoven fabrics. “Serving the baby diaper, adult incontinence and feminine hygiene markets, this move enables us to deliver an improved local service across the entire area,” said Mr Rachim.

Mr Rachim said that the investment in new production capacity would also support further product development from Avgol, under its innovative Forward Innovative Thinking strategy (FITTM). The research and development program creates value, flexibility and sustainability for brands and manufacturers from the outset.

“As a highly innovative and responsive supplier, we are continually investing in R&D to ensure we are developing the best products to meet demand,” said Mr Rachim. “With this relocation, we are ensuring that we can increase nonwoven fabric production to both meet the immediate, obvious local need and also be best-placed to serve the increasing future needs of the Indian market.”

Relocation of the Avgol Line 5 production from Barkan, Israel, to the India is underway now, with installation expected to be completed by end of 2021.