One of Northern Europe's largest PET recyclers acquires Czech fibre producer

Latvia's PET Baltija, one of the largest PolyEthylene Terephthalate (PET) recyclers in Northern Europe, is to acquire Tesil Fibres, a major Czech fibre producer and spin-off of plastic manufacturer SILON. Once closed, the transaction will be one of the largest investments by a Latvian company in the Czech Republic.

PET Baltija says the transaction will increase its revenues by more than 50% while also making it an international company. For SILON, the transaction will enable it to fully focus on both the production and development of high-quality polyolefin-based performance compounds.

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Fibre production has been part of the traditional operations in Planá, Czech Republic, since 1966, and is an integral part of SILON. The operations spun off to Tesil Fibres encompass annual staple fibre production capacities of 33,000 tonnes and employs around 150 people.

Tesil Fibres is a primary supplier to the European market, covering industries and sectors that include automotive, hygienic, textile and furniture. It is also well known for its high-quality standards and last year its fibre division recorded sales of €27 million.

Salvis Lapiņš, Chairman of the Board at PET Baltija, said: "This deal will really put PET Baltija on the map as a key international player in the sector. We recognise and are excited by Tesil Fibres’ impressive high growth potential and its dedicated team of professionals. 

"By ensuring the supply of best-in-class recycled PET materials, we will look to significantly contribute to the growth of the Tesil Fibres business and add greater product differentiation to it. It is also important to mention that the overall volume of recycled PET will also increase through these developments."

Šuchrat Saidov, CEO at SILON added: "Following a series of consultations and extensive market research, we decided that the best route to success for the fibre division would be to identify a respected strategic partner who can further grow and develop it. We are delighted to report that we have found a solution which, we believe, will be the best possible outcome for fibre production in Planá.

"The SILON Group will now focus all its growth and development efforts towards compounding business."

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Both, SILON and PET Batlija have emphasised that the agreement includes a detailed handover plan, primarily targeting and ensuring that there will be no changes to the current service offering that highly valued partners, customers, suppliers, employees or other key stakeholders receive.

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