The Hindu Business Line : AV Birla group plans expansion of viscose staple fibre capacity

Mumbai March 30 The Aditya Birla group will invest close to $260 million (Rs 1,170 crore) in brownfield expansions to increase its global viscose staple fibre capacity by a third by mid-2008.

In the next one year, brownfield additions to the group's facilities in Thailand, Indonesia, China and India will increase the group's capacity from the existing 5,66,000 tonnes per annum to 7,27,000 tonnes, said a statement from the company.

Greenfield

Separately, it is also initiating steps for setting up a greenfield capacity in the Mediterranean region, said the statement. This region will offer significant cost and logistics advantages to the group's existing VSF operations, said the statement.

"This new facility with a focus on high-end products, will enlarge our global footprint and help meet the requirements of customers in the emerging textile hubs of the West Asia, the Mediterranean region and Latin American countries in a cost-effective way," said Mr Shailendra Jain, Director in-charge of the global pulp and fibre business of the group.

"It will also enable customers to proactively grapple with the challenge of increased textile imports from China, post-WTO," said the statement.

The brownfield expansions, which are geared for production of speciality fibres, reflect the company's continuing emphasis on being a value-added player, said Mr Jain.

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