Acquisition makes Reliance a truly global polyester player
10/09/2007
The Reliance Industries Limited (RIL) has confirmed that it has reached an agreement to buy all the assets of Malaysian textile producer Hualon. The agreement, for an undisclosed sum, is subject to "certain conditions" and regulatory approval.
RIL acquired German textile producer Trevira in 2004, but it believes the Hualon deal will cement its position as a global leader in producing polyester yarn, fibre and resin.
Adding Hualon's capacity, estimated at 500,000 tonnes per year, to its existing output means RIL will be able to produce 2.5 million tonnes annually. The Mumbai-based conglomerate also believes Hualon will add $1 billion a year to its revenue streams (which also include energy and retail interests), and give it a share greater than 7% of the global polyester fibre and yarn market.
Commenting on the deal, RIL chairman, Shri Mukesh Ambani, said: "The assets of Hualon will help us strengthen our position in the textile value chain; RIL will graduate to become a solution provider to the global textile industry. This acquisition reiterates our strong commitment to the growth of polyester."
The Indian group went on to say that its research and development capabilities would help the Hualon facilities in Malaysia launch "innovative products catering to high value premium segments".
The Indian group went on to say that its research and development capabilities would help the Hualon facilities in Malaysia launch "innovative products catering to high value premium segments".
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