Mumbai: Aditya Birla Group, the USD 35 billion multinational corporation, on Thursday said it is planning to invest USD 500 million over the next five years to set up a Viscose Staple Fibre plant in Turkey's Adana Organised Industrial Zone. (Agencies)
"In the Viscose Staple Fibre (VSF) sector, we are reckoned as a marquee Group with over 21 percent of the global market share. For us in the Aditya Birla Group, VSF is a core business. Our aspiration is to significantly ramp up our global market share and our capacities by the turn of the decade. Establishing a world-class plant in Turkey is a step in this direction," Aditya Birla Group Chairman Kumar Mangalam Birla said in a release here.
The Group proposes to invest USD 500 million over the next five years to set up a 180 ktpa fully integrated VSF plant, with a captive power plant, CS2 plant and sulphuric acid plant in two phases.
"Currently our VSF manufacturing capacity is 750 ktpa. Our ambition is to raise it to 1.1 million tons by 2015. We expect to commission our plant in Turkey by early 2015. This capacity in Turkey will cater primarily to the textile industries here. Currently, 100 percent of VSF used in the textile and non-woven sectors is imported. Turkey, I believe is the 4th largest consumer of VSF in the world," company's Global Director of the VSF Business K K Maheshwari said.
Turkey, he said, is expected to become the second largest consumer over the next five years, which makes sense for setting up the VSF manufacturing facility there.
While the plant will cater primarily to the domestic market, the Group will export around 20 percent of the VSF produced in Turkey to European Union and other neighbouring countries.
"It will provide employment to nearly 500 Turkish nationals, besides generating substantial indirect employment through its engagement with the ancillary industries," Maheshwari added.
Aditya Birla Group's Pulp & Fibre operations span six countries - Canada, Sweden, Thailand, Indonesia, China and India.
The Group is on an ambitious expansion trajectory and is ramping up capacities in other parts of the world as well.
A 120 ktpa Greenfield project at Vilayat in Gujarat and a 36 ktpa brown-field expansion at Harihar in Karnataka, both in India are underway at a total investment of USD 450 million.
Mumbai: Aditya Birla Group, the USD 35 billion multinational corporation, on Thursday said it is planning to invest USD 500 million over the next five years to set up a Viscose Staple Fibre plant in Turkey's Adana Organised Industrial Zone.