News
Further investment by the Lenzing Group to expand fiber production capacity at its Indonesian subsidiary PT. South Pacific Viscose
Tuesday, 14. December 2010
Due to the strong demand from the Indonesian textile industry for high-quality viscose fibers, the Lenzing Group, a world market leader in man-made cellulose fibers with its registered office in Austria, announced the immediate further expansion of its production capacity at PT. South Pacific Viscose (SPV), the company's main Asian production facility, located at Purwakarta, West Java.
Lenzing plans to construct a new jumbo viscose fiber production line “Line 5” within the next two years with an investment of about USD 130 million. The announcement follows the recently completed substantial investment in capacity increase of more than USD 170 million at SPV in the past two years. This additional investment program will consequently provide employment for more than 1,000 local construction workers and will create approximately 300 permanent jobs on completion of the project. With the completion of line 5 more than 2,000 employees will work at SPV and more than USD 700 million will have been invested by the Lenzing Group in Indonesia.
The new investment project will increase SPV’s viscose total fiber production capacity by 80,000 to about 325,000 metric tons by early 2013, making SPV the world's biggest viscose fiber production site. It will furthermore increase SPV’s production capacity of the by-product sodium sulphate from currently 142,000 to 188,000 metric tons.
The additional viscose fiber quantities will mainly be sold to the fast-growing Indonesian domestic market. Lenzing expects that its further expansion of SPV will therefore promote the growth of the Indonesian textile industry and further strengthen SPV’s global market position by more and higher value added yarns and textiles.
The Lenzing Group also supplies the Indonesian market with significant quantities of special cellulose fibers, such as TENCEL® and Lenzing Modal®, from its production sites in Austria, the U.K. and the USA. The volume of these special fibers supplied to Indonesia from other Lenzing production sites is growing year by year. They enable Indonesian spinners to produce high-quality yarns for the dynamic local market and for demanding export markets.
SPV is a sustainably managed company with high environmental standards. The construction of the new jumbo line 5 will include the expansion of the existing recovery and treatment facilities for waste water and waste gas. Line 5 will have state-of-the art environmental protection equipment setting standards that Lenzing believes will set a benchmark for all other viscose line expansion projects in Asia.
For more information please contact:
Wolfram Kalt
President Director
Phone: +62-264 822 9634
E-mail: wolfram.kalt@pt-spv.com
Hemawan Prio Utomo
Sr. Manager GA & Community Relation
Phone : +62-264 822 9642
E-mail: hemawan@pt-spv.com
News
SPV will increase its fiber production capacity by 80,000 tons per year
SPV will increase its fiber production capacity by 80,000 tons per year with the construction of line 5, which will operate by end of 2012. This addition capacity will increase SPV’s total production to 325,000 tons per year.
Further investment by the Lenzing Group to expand fiber production capacity at its Indonesian subsidiary PT. South Pacific Viscose
Due to the strong demand from the Indonesian textile industry for high-quality viscose fibers, the Lenzing Group, a world market leader in man-made cellulose fibers with its registered office in Austria, announced the immediate further expansion of its production capacity at PT. South Pacific Viscose (SPV), the company's main Asian production facility, located at Purwakarta, West Java.