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The proposed demerger of Fiberweb from the BBA Group is expected to take place on or around 17 November 2006.

Once the demerger becomes effective, Fiber-web shares will trade on the London Stock Exchange and BBA will be renamed BBA Aviation plc.

“I am excited about the forthcoming demerger which will create an inde-pendent Fiberweb, a busi-ness focused on producing nonwoven materials for use in the hygiene and industrial markets. This demerger will allow us to sharpen our focus on our ongoing turnaround programme and on building on the leading market posi-tions that Fiberweb enjoys today,” said Daniel Dayan, chief executive officer of Fib-erweb.

Following a review of BBA’s strategic objectives during 2005, the BBA board announced plans earlier this year to demerge the Fiberweb nonwovens business from BBA’s aviation services busi-ness (see Filtration Industry Analyst, June 2006). These businesses have operated under common ownership

within BBA for a number of years, but there are no opera-tional synergies between them. Fiberweb’s manage-ment believes the buisiness has good prospects for prof-itable growth and expansion, particularly in its industrial speciality products.

It is expected that, ini-tially, BBA Aviation will be included in the FTSE 250 Index and that Fiberweb will be part of the FTSE SmallCap Index. It is also expected that BBA Aviation will remain in the Industrial Transportation sector and Fiberweb will form part of the Support Services sector.

Over nearly 20 years, BBA has built the Fiber-web business into one of the largest groups by sales that operates globally in the non-wovens industry. Fiberweb focuses on the production of nonwoven materials for use in hygiene and industrial speci-ality products and it has been able to establish and develop strong positions in several product categories.

In its hygiene division, Fiberweb produces a variety of nonwoven materials for use in diapers, feminine hygiene protection, adult incontinence

and other consumer care prod-ucts including baby wipes, personal wipes and household cleaning wipes.

Within its industrial spe-cialities division, Fiberweb has strong positions in select-ed niche markets including construction (eg housewrap and roof-lining), pool and spa filtration media and fabric softener sheets.

Following the demerger, Fiberweb’s strategy will con-tinue to be to create value for shareholders through the successful implementation of its turnaround programme. This programme is designed to secure Fiberweb’s posi-tion as a leading supplier of speciality nonwoven fabric solutions, and has four major elements: cost reduction and the elimination of loss-mak-ing activities; improvement in operational performance; profitable growth in selected nonwoven industrial speciali-ties markets globally, and fur-ther development of profitable hygiene business areas.

BBA FINALISES FIBERWEB DEMERGER

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CONTENTS COMPANY PROFILE 9–10 COMPANY WATCH 11–13 DIARY 15 DIVIDENDS 4 EXCHANGE RATES 16 FINANCIAL CALENDAR 14 IN BRIEF 3,6,8 NEWS 1,2,3,4,5,16 NPD 14 OPINION 6 ORDERS 7 PEOPLE 8 STOCK WATCH 15

Ahlstrom is adding a new needlepunch line to its Wuxi facility located close to Shanghai, China to serve the growing dust filtration market in Asia.

The 4 million invest-ment will be completed in the third quarter of 2007. The new line will manufac-ture a variety of needlepunch nonwoven media targeted mainly at high temperature applications for the dust filtration market, a very dynamic segment of the fil-tration industry.

“The demand for these products is growing in Asia and particularly in China,” said Randal Davis, senior vice president, Filtration. “With the industrial and power genera-tion growth of the region and requirements for clean emis-sions, dust filtration is a mar-ket segment with double digit growth. We expect to become a significant player in this seg-ment supplying a variety of technical products, especially in the higher-end, high tem-perature applications.”

The line will more than double the capacity of Ahl-strom’s Wuxi facility in China, which was acquired less than a year ago, where it currently operates one line serving this market segment.

BUSINESS NEWS FOR THE FILTRATION AND SEPARATION INDUSTRIES

ANALYSTFILTRATION INDUSTRY

NOVEMBER 2006ISSN 1365-6937www.filtsep.com

AHLSTROM ADDS NEW

PRODUCTION LINE IN CHINA

COMMENTThe separation should help Fiberweb management to pursue future growth and expansion opportuni-ties with a more focused approach. The independent Fiberweb will also ben-efit from the previously announced restructuring, cost reduction, productivity and growth initiatives. ■