Aditya Birla Group to invest $500 million in Turkey VSF project

The Aditya Birla Group plans to invest $500 million over the next five years to set up a viscose staple fibre (VSF) plant in Turkey's Adana Organised Industrial Zone.

The $35-million group, which is the world's top manufacturer of VSF, proposes to set up a 180 kilotons per annum fully integrated VSF plant with a captive power plant, CS2 plant and a sulphuric acid plant.

The VSF plant will come up in two phases, the company said in a press release on Thursday.

"In the viscose staple fibre 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," said Kumar Mangalam Birla, chairman, Aditya Birla Group.

"Currently, our VSF manufacturing capacity is 750 ktpa. Our ambition is to raise it to 1.1 million tonnes by 2015. We expect to commission our plant in Turkey by early 2015. This capacity in Turkey will primarily cater to the textile industries here. Currently, 100 per cent of VSF used in the textile and non-woven sectors is imported.

Turkey, I believe is the 4th largest consumer of VSF in the world. It is expected to become the 2nd largest consumer over the next five years. So setting up the VSF manufacturing facility here makes imminent sense. We have been much encouraged by the government's proactive industrial policies and the work ethos," said K K Maheshwari, global director of the VSF business, Aditya Birla Group.

While the plant will cater primarily to the domestic market in Turkey, the group also plans to export around 20 per cent of the VSF produced there to European Union and other neighbouring countries.