Aditya Birla Group enters into JV with Chinese firm

New Delhi, Sep 4 (UNI) Aditya Birla Group (ABG) company Grasim today said it has entered into a joint venture with with China-based Hubei Jing Wei Chemical Fibre (JWCF).

As per the agreement subject to the requisite statutory approvals, Grasim will own a majority stake in the to-be-formed joint venture company 'Birla Jingwei Fibres Company Ltd', through ABG's Cellulosic Fibre companies, namely Thai Rayon and P T Indo Bharat Rayon.

The new company will acquire the existing assets of JWCF.

''The Asian and Chinese markets offer enormous potential for commodity and speciality fibres, in both of which our group has a strong foundation. Through this partnership, in which we have made a strategic investment, we are expanding in both these segments in addition to growing further in VSF segment,'' ABG Chairman Kumar Mangalam Birla said.

The JV will be ABG's second in China. Earlier in 2003, the group established Liaoning Birla Carbon Ltd, a 50,000 TPA furnace grade carbon black company.

A 8.3 billion dollars conglomerate, with a market capitalisation in excess of 12.5 billion dollars, the Group with a workforce of 82,000 employees has operation in India, Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia, Belgium and China.

UNI PKS CS RN1445