Aditya Birla Group to form JV in China

The Aditya Birla Group has signed an agreement with China's Hubei Jing Wei Chemical Fibre Company to set up a joint venture for manufacturing viscose staple fibre (VSF).

As per the agreement, the Aditya Birla Group, through its cellulosic fibre companies - Grasim Industries, Thai Rayon Public Company and Indonesia-based P.T. Indo Bharat Rayon, along with Hubei Jing Wei - would form the JV company.

The group would hold the majority stake in the JV with its flagship Grasim Industries holding over 30%. The JV, Birla Jingwei Fibres Company, would acquire the existing assets of Jing Wei, it said.

"Our new JV, in which we have made a strategic investment, marks a major milestone in China. Furthermore, the Asian and Chinese markets offer enormous potential for commodity and speciality fibres, in both of which our group has a strong foundation," Kumar Mangalam Birla, chairman of the group, said.