Thailand's only producer of viscose rayon staple fibre (VRSF) aims to overcome the shrinking global market for its fibre products by producing specialty non-woven fibre for making clothes.

Thai Rayon Plc will upgrade one of its three spinning production lines to make the new product for export primarily to Japan, South Korea, the US and Europe.

Company president, P M Bajaj, also announced that at the same time the production of commodity fibre, of which 55 per cent is sold locally, will be reduced to 25,000 tonnes a year from 62,000 tonnes a year.

He said that his firm operates at a full annual production capacity of 186,000 tonnes of fibre but as the new product was worth three to four times the value of commodity fibres, the returns would offset the reduction in capacity.

Mr Bajaj predicted that the company's sales this year were not likely to increase in quantity but should grow by 5 per cent in value. "We expect our revenue will top four billion baht this year, with 50 per cent generated by exports, despite the overall market slowdown," he commented.

Founded 25 years ago, Thai Rayon is one of the largest exporters of VRSF in the world. Owned 51 per cent by Thais and 49 per cent by the Aditya Birla Group, it claims to have total assets of 5.63 billion baht and liabilities of 307 million baht.

In the first nine months of the company's fiscal year to June 30, it posted a net profit of 419 million baht compared with 410 million baht over the same period last year.

To view related research reports, please follow the links below:-

Nonwovens - Private Companies Report

Coated Fabrics to 2003