Asia Fiber Holdings Limited, a US corporation that manufactures and distributes polyester fibre for use in apparel and industrial textiles, today announced that its majority owned subsidiary, Harbin Asibao Chemical Fiber Co Ltd ("Asibao"), has signed a letter of intent with Heilongjiang Longdi Limited Liability Company ("Longdi") to acquire four multifunction polyester chip production lines.

Asia Fiber Holdings anticipates that the acquisition of the multifunction chip production lines will immediately increase Asibao's profits by approximately 40 per cent, and, upon completion of the acquisition, will have assured its raw material supply needs and established a vehicle to develop new value-added products while expanding its product specification capabilities.

The company hopes that this will lead to a significant expansion of production output and a further increase of profitability. The four production lines to be acquired exceed all international standards and include the most advanced Distributed Control System (DCS) available.

Ching Lung Po, chairman of Asia Fiber Holdings, said: "The planned acquisition of the production lines from Longdi coincides with the company's plans to further strengthen its market position as a leading polyester producer through an aggressive acquisition campaign. The company intends to more than double its annual production capacity through acquisitions of additional production plants shortly."