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Birla Group to make viscose in Turkey

January 4, 2012

$500 million, five-year investment planned.

The Aditya Birla Group will set up a Viscose Staple Fibre (VSF) plant in Turkey's Adana Organized Industrial Zone, planning to invest $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 a sulphuric acid plant. The VSF plant will come up in two phases.
 
"In the Viscose Staple Fibre sector, we are reckoned as a marquee Group with over 21% 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," comments Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group.
 
Elaborating, K. K. Maheshwari, global director of the VSF Business, said, "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 primarily cater to the textile industries here. Currently, 100% of VSF used in the textile and non-woven sectors is imported. Turkey, I believe is the fourth largest consumer of VSF in the world. It is expected to become the second largest consumer over the next five years. So setting up the VSF manufacturing facility here makes imminent sense. We have been much encouraged by the government's proactive industrial policies and the work ethos."
 
While the plant will cater primarily to the domestic market, the group will export around 20% of the VSF produced in Turkey to European Union and other neighboring countries. Mr. Maheshwari added, "It will provide employment to nearly 500 Turkish nationals, besides generating substantial indirect employment through its engagement with the ancillary industries."
 
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 brownfield expansion at Harihar in Karnataka, both in India, are underway at a total investment of $450 million.

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