These brownfield expansions, slated to be completed by next year's second quarter, will notch up the group's total VSF production from 566ktpa to 728ktpa and entail an expenditure of about US$260 million (Bt9.1 billion), the group said in a statement released last week. VSF is a core business of the Aditya Birla Group. Following a recent 120ktpa ramp-up, the present capacity of 566ktpa represents a 23-per-cent global market share in this sector.

The group has also expanded its presence in dissolving grade-pulp production to support the raw-material requirements of its VSF operations. The group has two pulp plants in Canada and one in India and initiated a pulp and plantation project in Laos, in order to strengthen its backward integration.

Shailendra Jain, director of global pulp and fibre operations, said, "Over the years, we have been moving away from being a pure commodity player to a value-added player for the niche segments of the market. In addition to spun-dyed fibres, we have significantly enhanced our speciality-fibre portfolio, covering all generations of man-made cellulosic fibres. Our intent is to be an equally significant producer of fibres for non-woven applications. These brownfield expansions in Thailand, Indonesia, China and India have been engineered for the production of speciality fibres for the higher end of the market and also for the production of fibres for the fast-growing non-woven segment."

While the brownfield expansions are intended to meet growing demand for VSF in emerging Asian textile hubs, the group has also initiated steps for setting up a 90ktpa greenfield capacity in the Mediterra-nean region that offers significant cost and logistical advantages to the group's existing VSF operations.