Fibertex Personal Care has adjusted its Malaysian spunmelt output amidst large-scale capacity expansion, which has increased competition in the market in recent years. In its parent company, Schouw & Co.’s third quarter earnings release, the Denmark-based company reported it has taken a DKK15 million ($2.2 million) charge related to one-off costs related to the operational changes which has led to a significant reduction in employees.

Dive Deeper: Fibertex Personal Care’s 2024 Top Company Report 
 
According to the company,  even as it temporarily reduces its output, FPC remains committed to ensuring the best possible operational efficiency and strengthening earnings moving forward. Additionally, FPC continues to focus on offering value-added products and services well suited to compete in extremely price-sensitive markets.
 
FPC entered the Malaysian market in 2003 and added a second line 2017. The company currently operates six lines at two plants near Kuala Lumpur. It is among the largest suppliers of nonwovens materials in Asia.
 
For the third quarter of 2024, FPC, which also has an operation in Aalborg, Denmark, saw earnings drop from DKK81 million ($11 million) to DKK40 million ($5 million), despite sales remaining in line with the third quarter of 2023 at DKK474 million ($70 million).