Companies

AV Birla Group to invest $500 million in Turkey

Kumar Magalam Birla. Photo: Paul Noronha   | Photo Credit: Paul Noronha

The $35-billion Aditya Birla group plans to set up a viscose staple fibre (VSF) plant in the Adana Organised Industrial Zone in Turkey. The group, the world's leading VSF manufacturer, plans to invest $500 million in the next five years to set up a 1.80-lakh tonne fully integrated VSF plant, with a captive power plant, CS2 plant and sulphuric acid plant. The VSF plant will come up in two phases.

“In the VSF sector, we are reckoned as a marquee group with over 21 per cent 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,” Aditya Birla group Chairman Kumar Mangalam Birla said.

According to VSF Business Global Director K. K. Maheshwari, “At present, our VSF manufacturing capacity is 7.50 lakh tonnes annually. Our ambition is to raise it to 1.1 million tonnes by 2015. We expect to commission our plant in Turkey by early 2015.'' Mr. Maheshwari said the plant would provide employment to nearly 500 Turkish nationals, besides generating substantial indirect employment through its engagement with the ancillary industries.

The Turkey plant capacity will cater primarily to the textile industries there. At present, 100 per cent of VSF used in the textile and non-woven sectors is imported. Turkey is the fourth largest consumer of VSF in the world and is expected to become the second largest consumer over the next five years. The group will export around 20 per cent of the VSF produced in Turkey to the European Union and other neighbouring countries.

Greenfield project

The group's pulp and fibre operations span six countries —Canada, Sweden, Thailand, Indonesia, China and India.

A 1.20 lakh tonnes per annum greenfield project at Vilayat in Gujarat and a 36,000 tonnes a year brownfield expansion at Harihar in Karnataka, both in India, are under way at a total investment of $450 million.


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Printable version | Dec 2, 2021 12:59:35 PM | https://www.thehindu.com/business/companies/av-birla-group-to-invest-500-million-in-turkey/article2758509.ece

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