Nonwoven fabrics manufacturer NR Spuntech Industries (TASE: SPNTC) today announced that its US subsidiary has signed a $20 million two-year contract with a new customer, whose name it did not disclose, merely describing it as a "global company".
Spuntech uses its high-speed water jet Spunlace hydroentanglement technology to produce non-woven fabrics. The fabrics are used as materials in wet wipes, cosmetic, hygiene, and household products. The company has four production lines, three in Israel and one in the North Carolina. The US plant began operating in 2006, and has a current capacity of 12,000-14,000 tons a year.
Spuntech will become an additional supplier of non-woven fabrics to the customer. The two-year contract has a one-year option to extend.
Spuntech chairman Hezi Nissan told "Globes", "As a result of this contract, we'll supply less than 15% of this customer's needs for this particular item, so there is room for growth beyond these quantities as well as potential growth for other products."
Nissan Medical Industries Ltd. (TASE: NISA) owns 66% of Spuntech. Spuntech's share price rose 7.6% today to NIS 5.04, giving a market cap of NIS 304 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 13, 2010
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