Polymer Group to Install State-of-the-Art Spunbound Line in Argentina Doubling Production Capacity

Polymer Group, Inc. announced its plans to install a state-of-the-art spunbond line that will more than double the capacity of its joint venture facility near Buenos Aires, Argentina, to meet growing demand for its products in South America and to better serve its customers in the region.

Continued growth in the Mercosur trading region is driving customer demand for the high-quality materials that PGI has built a reputation for providing at its joint venture, Dominion Nonwovens Sudamericana S.A. (DNS).

The new wide-width, multi-beam line will feature the latest spunbond technology available in the market and will be capable of producing in excess of 15,000 metric tonnes per year. The company expects to begin installation of the new line in the second half of 2006, with commercial production planned for late 2007.

The new line is intended to be fully dedicated to the hygiene market, providing high-quality fine denier top sheet and other materials for use in diapers. The addition of this line gives the company's DNS operation the ability to produce material that will satisfy the highest hygiene standards in the industry. The expanded capacity will also be used with DNS's coating capabilities to provide even more value-added products, such as cloth-like backsheet, for customers in the region.

DNS has been operating in Buenos Aires since 1997. The company began operations with the installation of a multi-beam spunmelt line serving the hygiene and industrial markets of the Mercosur region and added an extrusion line in 2003 to increase the company's fully integrated production capabilities.

Polymer Group's chief executive officer, James L. Schaeffer, stated, "PGI is committed to growing with customers on a global basis. The developing regions of the world, like Argentina, hold significant potential for PGI as we continue to execute on our strategy of growth by offering the right product in the right places around the world. Our joint venture in Argentina is recognized as a world-class producer of engineered materials and this line will enable us to continue to provide the highest quality products available in the markets to customers where they need them."

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