One of the biggest PolyEthylene Terephthalate (PET) recyclers in Northern Europe, PET Baltija, has agreed to acquire Tesil Fibres s.r.o., a well-known Czech fiber manufacturer and a spin-off of SILON s.r.o. Once completed, this deal will rank among the biggest financial commitments made yet by a Latvian firm in the Czech Republic.

As a result of this vertical integration agreement, PET Baltija's current revenues will rise by more than 50%, and the firm will also go global. The sale will allow SILON to completely concentrate on the research and manufacture of the highest caliber polyolefin-based performance compounds.

Since 1966, fiber manufacturing has been a part of the regular activities in Planá, Czech Republic, and is a crucial component of SILON s.r.o. The businesses spun off to Tesil Fibres include a nation-leading annual capacity of 33 000 tonnes of manufacture of staple fiber and about 150 people.

Tesil Fibres is a major supplier to the European market, serving the automotive, sanitary, textile, and furniture industries. Additionally widely renowned for its excellent quality standards, its fiber segment reported €27 million in revenues last year.

Salvis Lapiņš, Chairman of the Board at PET Baltija, said that this agreement will definitely establish PET Baltija as a significant worldwide participant in the industry. Tesil Fibres has extremely high development potential, and its committed team of specialists thrill them. They intend to grow the business further, speeding its growth and producing genuine value for all parties concerned, in close collaboration with the team and other significant stakeholders. They will work to significantly contribute to the expansion of the Tesil Fibres company and provide greater product differentiation to it by assuring the delivery of best-in-class recycled PET materials. It's also vital to note that these improvements will result in a rise in the overall volume of recycled PET.

Deimantė Korsakaitė, Executive Partner at INVL Baltic Sea Growth Fund and Chairman of the Supervisory Board at PET Baltija, added that the ambition of the INVL Baltic Sea Growth Fund to considerably expand PET Baltija through both organic growth and bolt-on acquisition techniques is reinforced by this acquisition agreement. The income of PET Baltija alone has more than quadrupled since our original investment, and the company is on schedule to complete an organic growth expansion project that will more than increase its capacity to produce food-grade PET. This agreement will strengthen the company's position as a genuinely global, vertically integrated market leader dedicated to sustainability and addressing environmental problems. This is a big breakthrough that will propel the firm to have revenues of at least €100 million.