New giant viscose fibre plant planned in Turkey
By Virginia F. Bodmer-Altura
Turkish Aditya Birla Group is planning a new world class Viscose Staple Fibre plant in Adana (TR) at its organised industrial Zone.
The proposed investment for the new Viscose Staple Fibre (VSF) plant amounts to USD 500 million with an installed annual capacity of 180’000 t and also comprising an adjacent power plant, a CS2 and a sulphuric acid plant over the next five years and it will be built in two phases.
According to in-house information the multinational Aditya Birla Group’s turnover reaches around USD 35 billion and its VSF sector claims a worldwide market share of over 21%. Up to 2020 the group will decidedly increase its market share by building up new capacities. The groups total VSF installed manufacturing capacities actually amount to 750’000 t and there are plans to expand these to 1.1 million t by 2015 and by that deadline the new VSF Adana plant should be on stream. It will provide employment for around 500 persons and primary cater to domestic demand. In turn the group will also export around 20% of the VSF produced in Turkey to the EU and other neighbouring countries. Turkey is today the 4th largest worldwide consumer of VSF – all VSF used by the textile and the nonwoven sector is imported – and is expected to become No. 2 in the next five years.
Aditya Birla’s division “Pulp & Fibre” has manufacturing sites in Canada, Sweden, Thailand, Indonesia, China and India. Lately it initiated two new production sites with an investment of USD 450 million in India, one of annual 120000 t in Vilayat, Gujarat and a 36000 t expansion at Harihar, Karnataka.
These enormous investments and capacities will have certainly a great impact on competitors and especially on Swiss based filofibra sa (founded 1967 owned by the Danisi family), according to in-house information one of the largest European traders in raw materials for global textile industries. The company is specialised in the fibre and yarn sector and enjoys partnerships with several European and Asian fibre manufacturers. Its main markets are Turkey and the EU. The product lines entail cotton and linen spun yarns, VSF fibres but also tow and top, Viscose Rayon Filament yarns, Acetate Continue Filament Yarns, Bamboo Spun Yarns and Rayon Filament yarn. Further Polyester staple fibres, also tow and top, Polyamide staple & top, Polypropylene Fibres, Acrylic spun yarns, Polyester spun end and continue yarns, PBT continue yarns and Spandex yarns. Annual sales are around 75000 of fibres and 25000 t of yarns.
Why will it affect filofibra? Aditya Birla disposes of a well trained sales force and international service organisation and the company will keep the VSF business in a closed cycle. Once the Birla Adana plant is fully operational it will create important competition to the filofibra business especially in Turkey and in EU countries and somewhat undermine the up to now unique trading position of filofibra.
TextileFuture invited filofibra to comment but the e-mails remained unanswered. Should there be additional information made available we will let you know in a follow up.