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The Aditya Birla group intends to invest $500 million over the next five years to set up a viscose staple fibre plant in Turkey.
“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,” said Mr Kumar Mangalam Birla, Chairman of the group.
The Aditya Birla Group has over 21 per cent market share in the global VSF space, according to a press statement.
The 180 kilo tonnes per annum (ktpa) VSF plant, which will come up in Turkey's Adana Organised Industrial Zone, will also have a captive power plant, a chemical plant and a sulphuric acid plant.
The new plant in Turkey is expected to be operational by 2015. This initiative is in line with the group's strategy of ramping up its VSF manufacturing capacity to 1.1 million tonnes from 750 ktpa over the next three years, said Mr K. K. Maheshwari, global director of the VSF business.
The group has zeroed in on Turkey as it is expected to become the second largest consumer of VSF over the next five years from being the fourth largest currently, he added.
While the plant will cater primarily to the domestic market, around 20 per cent of the produce will be exported to countries in the European Union and other neighbouring countries.
The plant, which will come up in two phases, is expected to provide employment to 500 Turkish nationals.
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