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Aditya Birla signs contract with Hubei Jing Wei Chemical Fibre Co Ltd

04 Sep '06

3 min read

The Aditya Birla Group, a premium global conglomerate and a worldwide leading manufacturer of Viscose Staple Fibre (VSF), announced that it has reached an agreement with Hubei Jing Wei Chemical Fibre Company in China - a 30,000 TPA VSF manufacturer quartered in the Hubei Province of China.

Under the agreement, the Aditya Birla Group, through its Cellulosic Fibre Companies, viz., Grasim Industries Limited, India, Thai Rayon Public Company Limited, and P.T. Indo Bharat Rayon, Indonesia, along with Hubei Jing Wei, will form a Joint Venture Company (JV).

The new JV, to be named “Birla Jingwei Fibres Company Limited”, will acquire the existing assets of Jing Wei. Whilst the Aditya Birla Group will have a majority stake – 70 percent - in the new JV, Grasim Industries Limited will have a stake of a little over 30 percent.

Says Mr. Kumar Mangalam Birla, Chairman, the Aditya Birla Group, “in Viscose Staple Fibre, we are in a leadership position. Our intent is to grow even further globally in this sector. Our new JV, in which we have made a strategic investment, marks a major milestone in China. Furthermore, the Asian and Chinese markets offer enormous potential for commodity and speciality fibres, in both of which our Group has a strong foundation. We are expanding in both these segments”.

Avers Mr. Shailendra K. Jain, Director, Aditya Birla Management Corporation, responsible for the Pulp, Fibre and Spinning business globally, “this is a win-win situation for both Hubei Jing Wei, its stakeholders and our Group. We will bring in the the world class manufacturing practices and global marketing experience to ensure high product quality and market penetration."

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