Invista
The sale of the apparel yarn business of fiber producer Invista S.a.r.l., Wichita, KS/USA, to the textiles and clothing company Shandong Ruyi Technology Group Co. Ltd, Jining, Shandong/China, has been viewed by textile supply chains as one of the most significant changes that the elastane fiber industry has faced in many years.
Included in the deal is the elastane fiber business Lycra which still exerts great leverage in the fashion business.
Customers had initially understood that the transaction was targeted to complete around mid-year 2018, although subsequent study of the various announcements indicates that there was no firm timetable offered by the participants. The transaction has now moved into Q4/2018 and is being viewed in the context of the increasingly acrimonious trade war between the USA and China. Latest statements by the US Government’s Economic and Security Review Commission warn that Chinese FDI investment into the USA was $1.8 billion in H1/2018, more than 90% down on H1/2017. Observers suggest that if divestments over this period are taken into account, then Chinese FDI into USA was actually negative over H1/2018. In this context there are concerns that the Invista deal (said to be worth around $2.5 billion) may be struggling to secure Chinese government clearance.