Situated in Suqian City in Jiangsu Province, Xiangsheng had ceased operation for more than nine months after being heavily burdened by debt since November 2017. In August 2018, Sateri signed an agreement to lease Xiangsheng from the local authorities amidst the mill’s restructuring efforts.
Leveraging its experience and advanced technological expertise in viscose production, Sateri invested RMB 500 million (about $75 million) during the lease period to revive and upgrade the mill, significantly improving its productivity, product quality, environmental and health and safety standards. The successful resumption of Xiangsheng’s operations has led to the creation oif more than 1,500 jobs within the local community, contributing to the prosperity and stability of Suqian City.
On 27 April 2019, Sateri won a bid for Xiangsheng mill in a public auction concluded by the local authorities. The transaction process is expected to complete in the next few months.
Tey Wei Lin, CEO of Sateri, says. "This acquisition will enable Sateri to bring its high-quality viscose to more customers, especially in the northern China market and work together with our downstream partners to accelerate the sustainable development of Suqian City and its surrounding areas. On completion of the acquisition, Xiangsheng’s mill will be renamed Sateri (Jiangsu) Fiber Co., Ltd., and will join Sateri’s world-leading viscose production network, including Sateri Fujian, Sateri Jiangxi and Sateri Jiujiang, enhancing the efficient delivery of high-quality products to our customers.