<article>SET-listed <a style="color: #000080;" href="https://www.dealstreetasia.com/?s=Indorama+Ventures">Indorama Ventures Pcl</a> and South Korea-based <a style="color: #000080;" href="https://www.dealstreetasia.com/?s=Huvis+Corp">Huvis Corp</a> today announced to form a 50:50 joint venture to develop and operate a low melting fibre (LMF) plant in the United States.</article>

SET-listed <a style="color: #000080;" href="https://www.dealstreetasia.com/?s=Indorama+Ventures">Indorama Ventures Pcl</a> and South Korea-based <a style="color: #000080;" href="https://www.dealstreetasia.com/?s=Huvis+Corp">Huvis Corp</a> today announced to form a 50:50 joint venture to develop and operate a low melting fibre (LMF) plant in the United States.
The new plant will have an annual production capacity of 60,000 tonnes, according to the company’s statement. LMF is commonly used as a binder fibre in core-sheath constructions to produce HVA applications for automotive and industrial composites.
&#8220;Our partnership will be a strategic step for both Indorama Ventures and Huvis to emerge as a regional leader and position us well to take advantage of the robust growth potential in the region,&#8221; Aloke Lohia, Group CEO of Indorama Ventures, said.
The two companies will initially sell their products in the United States and later expand to neighbouring countries, including Canada and Mexico, with low corporate tax.
LMF sales in the United States are expanding at a rate of 8 per cent a year as manufacturers have been converting from conventional chemical adhesives to a thermo-bonding method, it said.
The location is being finalized and the joint venture is expected to be established this year. Indorama and Huvis plan to commence operations in 2019, subject to various agreements and regulatory approvals.
Huvis Corporation, a joint venture between SK Chemicals and Samyang Corporation, is one of the world’s largest polyester fibre producers. It has been the world’s largest producer for LMF for years. It currently has production plants in Korea and China and reported a consolidated revenue of $1.2 billion in 2017.
Indorama Ventures is one of the world’s major petrochemical producers with a global manufacturing footprint across Africa, Asia, Europe and North America. It posted a consolidated revenue of $7.2 billion in 2016.
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SET-listed Indorama Ventures Pcl and South Korea-based Huvis Corp will form a 50:50 JV to develop and operate a low melting fibre (LMF) plant in the US.

Thailand's Indorama to set up joint venture with South Korea's Huvis in US

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Thailand's Indorama to set up joint venture with South Korea's Huvis in US

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