Thai Rayon to boost VRSF output through investment & acquisition
28 Jul '05
2 min read
Producer of vital raw material for the textile and non woven industry, viscose rayon staple fibre (VRSF) in Thailand, Thai Rayon Plc is likely to invest about one billion Baht to raise its capacity and acquire raw material manufacturing unit.
Company President, Pooranmal Bajaj informed that the company would invest 940 million baht within next two years to increase capacity and production of VRSF from 80,000 to 102,400 tons per year, and add about 80 more jobs.
Bajaj added that the company will acquire second mill in the eastern Canadian province of New Brunswick to secure an independent supplier of wood pulp, which is the main raw material and cost driver for the production of VRSF. Next, Thai Rayon would acquire 10 percent of the operation at a cost of 64 million Baht.
Currently, company imports 85,000 tons of wood pulp a year from other companies. However, this volume would shrink to 10,700 tons after the acquisition of the Canadian mill, the acquisition is expected to be completed in October.
Thai Rayon recently unveiled specialty VRSF fibre products in India by Aditya Birla and under the brand name of Birla Cellulose. Thai Rayon has planned to begin domestic production of Birla Cellulose by September this year.
Bajaj explained that after ending of global quota system the position of Thai-produced VRSF has dropped for a short while as competitors from India, China and Indonesia has been ventured in making of VRSF and both polyester and acrylic fibre.
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