The company will install new advanced equipment and machinery to convert its polyester yarns into treated fabrics used in radial automotive tires. The new capacity is expected to be operational by the third quarter of 2007.
The investment by Performance Fibers, an affiliate of Sun Capital Partners, is the latest in a series of planned expansions at the Kaiping site that has more than tripled capacity since early 2004, including a greenfield expansion completed in 2006 to expand production of its Dimensionally Stable Polyester (DSP®) fiber and fabrics.
"This latest investment shows our ongoing commitment to meeting the strong demands of the Asian tire market that continues to experience double-digit growth," said Greg Rogowski, president and CEO of Performance Fibers. "As we have previously announced, additional expansions are planned into the future."
Performance Fibers is the leading supplier of HMLS polyester fibers in China and was the first industrial polyester tire fibers provider to enter China more than a decade ago in 1993.