Lenzing Group to build new fiber factory in India

Lenzing, Austria – Cellulose fiber producer Lenzing Group will build a state-of-the-art viscose fiber production plant in India, to be located near Mumbai in Maharashtra State.

Lenzing is partnering with the diversified industrial Modi Group on the facility, which is expected to begin producing fiber in 2010 or 2011, the companies said.

“With Lenzing we expect a substantial improvement in the supply situation of the rapidly expanding Indian textile and nonwovens industry with high-quality fibers,” said Satish Modi, chairman of Modi Group. Modi Fibers Limited will provide the land and local expertise for the plant, which will encompass very high environmental protection standards and will have an initial production capacity of 80,000 tons. Lenzing will maintain the majority share in the enterprise.

Lenzing recently began production at its new Nanjing plant in China, and Lenzing Group chairman Thomas Fahnemann said, “This is the next logical step of our expansion focusing on Asia.” The company noted that Lenzing customers in India who currently pay import duties will benefit from the home-based factory.

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