The Aditya Birla Group and Fujian Jingwei Group have opened their new Chinese joint venture (JV) for viscose staple fibre (VSF), Birla Jingwei Fibres Company Limited.

Aditya's chairman Dr Kumar Mangalam Birla said: "Our new company — Birla Jingwei Fibres — in which we have made a strategic investment, having taken in a 70% equity, is a major milestone for us in China.

"The Chinese as a people have indeed a lot of commonalities with us in India. We are both a hardworking, committed people with passion. So when we were looking at a foothold in China for our VSF we could not have had a better partner than the Fujian Jingwei Group."

Dr Birla added: "There is a tremendous synergy between the Jingwei Group's strong presence in the textile spinning sector and our Group's dominance in the VSF business. This unique combination undoubtedly results in the achievement of benchmark levels of operational efficiency and world-class product quality".

Additionally, Dr Birla sees potential for expansion in both the Asian and Chinese markets.

He said the company was planning to increase its capacity from 30,000 tonnes to 60,000 in the first phase of growth.

Aditya's director and global business head for fibre and pulp, Shailendra Jain, said: "The cooperation between Jingwei and Birla Group is a win-win situation for both the organisations. The JV will be able to leverage on Aditya Birla Group's rich experience and dominance in VSF and dissolving grade pulp production and Jingwei Groups' substantial presence in yarn spinning."

Grasim was recently reported to be planning a facility in India's Vilayat industrial estate, 20km from Dahej.