December 4, 2007 -- Performance Fibers Inc., a Richmond-based maker of polyester and synthetic fibers for tires and other products, is expanding its manufacturing base in North America.

The company said yesterday that it would acquire the tire cord and polyester industrial filament businesses of Invista, a Wichita, Kan.-based manufacturer of fibers for apparel, carpets and auto products.

Financial terms of the deal were not disclosed, but the acquisition is Performance Fibers' largest since the company became a separate business three years ago. It was a unit of Honeywell International Inc., which sold the business in 2004 to the private investment firm Sun Capital Partners Inc.

"This really strengthens our industrial presence in North America," said Greg Rogowski, Performance Fibers' president and chief executive officer. In 2006, the company acquired a polyester yarn business in Germany from Invista. It also expanded its presence in Asia.

The latest deal, expected to be completed in the next several months, includes factories in Salisbury and Shelby, N.C., and Winnsboro, S.C., as well as industrial polyester, industrial nylon 6, and tire cord fabric-producing operations at Invista's plant in Queretaro, Mexico. The deal expands Performance Fibers capacity to make fibers for use in products such as tires, power transmission and conveyor belts, sewing thread, rope and cordage.

The acquisition of manufacturing assets in Mexico is especially important, Rogowski said. "I see it as a gateway to South America for us. There is a lot of growth in South America," especially in tire manufacturing.

Performance Fibers employment will grow from about 2,600 to more than 4,000 worldwide. The company employs about 80 people in the Richmond area, a number Rogowski said was growing and would grow with the acquisition, though he could not estimate by how much.

"We still have to decide where we put certain functions."

Source: Richmond Times-Dispatch (MCT)