With India its most successful market after China for viscose fiber, the Lenzing Group, Austria,
has entered into a cooperation agreement with the Modi Group to build a new viscose fiber plant
near Mumbai. A preliminary investment of $200 million will cover the first phase of construction,
which is expected to take two years, with the first production scheduled for 2010-11.
The facility will have first-phase production of 80,000 tons of viscose fiber per year and
will employ between 700 and 800 people. Once completed, the new facility Lenzing’s seventh
production plant will have more than doubled the company’s total production capacity within 10
years.
Modi Fibers Ltd. will contribute the land and local experience to the joint project, while
Lenzing will own the majority share and bring its production and technical expertise to the
project.
“After the successful startup of our plant at Nanjing, China, this is the next logical step
of our expansion focusing on Asia,” said Thomas Fahnemann, chairman of Lenzing’s Management Board.
“It was above all the strong demand from Indian customers that facilitated our decision to produce
fibers locally in India.”
A Lenzing branch office in India currently supports customers in that area, but the plant
will allow India-based companies to buy Lenzing Viscose® fiber without paying high import duties.
May/June 2007
