Indian manufacturer of viscose staple fibre Aditya Birla Group is to set up a joint venture (JV) with Hubei Jing Wei Chemical Fibre Company in the Hubei province, China.

Under the agreement, the Aditya Birla Group, through its cellulosic fibre companies Grasim Industries Limited, India, Thai Rayon Public Company Limited, and P.T. Indo Bharat Rayon, Indonesia, will form a joint venture, Birla Jingwei Fibres Company Limited, with Hubei Jing Wei.

"This is a win-win situation for Hubei Jing Wei, its stakeholders and our group. We will bring in the world-class manufacturing practices and global marketing experience to ensure high product quality and market penetration. We intend to ramp up the current capacity of 30,000 tpa to 60,000 tpa in the next one year. The JV will leverage upon the Aditya Birla Group's dominance in dissolving grade pulp production and Jing Wei Group's substantial presence in yarn spinning," said Shailendra Jain, director, Aditya Birla Management Corporation, responsible for the pulp, fibre and spinning business.

The new company is Aditya Birla’s second joint venture in China and the group is currently exploring further business opportunities in sectors such as phosphoric acid and acrylic fibre.

Aditya Birla Group employs 82,000 staff at its 72 manufacturing facilities in India, Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia, Belgium and China.