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Lenzing to build viscose fiber production plant in India

Apr '07
Thomas Fahnemann - Lenzing Chairman
The Lenzing Group will build a new viscose fiber production plant in India in cooperation with the Indian Modi Group. This decision was announced by the chairman of Lenzing's management board, Thomas Fahnemann, and the chairman of the Modi Group, Satish Modi, at the signing of the cooperation agreement in Vienna.

Production capacity for textile and nonwovens viscose fibers of the first construction phase of the new Lenzing plant will be 80,000 tons. The preliminary budget for investment, including working capital, is at 200 million US dollars. The new plant with a staff of 700 to 800 will be located in an industrial park in Maharashtra State about 45 miles south of Mumbai. Production is scheduled to start for 2010/11, after a construction period of two years.

Thomas Fahnemann comments the decision: "After the successful startup of our plant at Nanjing/China, this is the next logical step of our expansion focusing on Asia." India is seen as the second important market for viscose fibers after China. Lenzing is currently represented in India by a branch office, but Lenzing customers have to pay high import duty on Lenzing fibers. "It was above all the strong demand from Indian customers that facilitated our decision to produce fibers locally in India", says Thomas Fahnemann.

Lenzing's partner is the Modi Group, one of India's most successful conglomerates, with an annual turnover of about 1.2 billion US dollars. "We are happy to have found in Lenzing,the technological leader in viscose fiber production, our long-term partner for the Indian textile and nonwovens industry", emphasized Satish Modi at the signing.

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