India's Aditya Birla Group is setting up a joint viscose staple fibre (VSF) unit in China with Hubei Jing Wei Chemical Fibre.

Birla will team up with Jing Wei through its cellulosic fibre companies, Grasim Industries, Thai Rayon Public Company and Indonesia-based PT Indo Bharat Rayon.

Grasim will hold a stake of just more than 30% in the venture, while the new firm - Birla Jingwei Fibres Co Ltd - will buy the current assets of Jing Wei.

Birla Jingwei plans to  double its capacity to 60,000 tonnes yearly by December next year.
Aditya Birla chairman Kumar Mangalam Birla said: "…in Viscose Staple Fibre, we are in a leadership position. Our intent is to grow even further globally in this sector.

"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. We are expanding in both these segments".

This JV will be Birla's second in China along with Liaoning Birla Carbon. The company is also seeking opportunities for acrylic fibre and phosphoric acid among other products.