India's largest private sector conglomerate Reliance Industries Limited (RIL) is to buy the assets of Malaysian polyester producer Hualon Corp, which has been in the hands of receivers since the end of last year.

The deal will be Reliance Industries' second international acquisition in the polyester sector after it bought Trevira in Germany in 2004 - and will give it a 7% share of the global market for polyester fibre and yarn.

It will also consolidate Reliance Industries' position as the world's largest polyester manufacturer, increasing capacity by 25% to 2.5m tonnes and adding around US$1bn to annual revenues.

Hualon is one of Malaysia's largest exporters, with a capacity to make half a million tons of polyester (fibre, yarn and resin) a year. It also has downstream textile manufacturing capabilities spread over two locations in Malaysia at Nilai and Malacca.

Shri Mukesh Ambani, chairman, Reliance Industries, said in a statement: "This acquisition reiterates our strong commitment to the growth of polyester."

He added that the acquisition will give Reliance increased access to western markets, and that Reliance's R&D facilities will help the industry in Malaysia to launch new, high value products.