Sateri Breaks into the Yarn Producing Industry
Sateri is one of the world’s largest viscose staple fibre (VSF) production companies, and forms part of the Royal Golden Eagle (RGE) group. The raw material produced is a very important ingredient in everyday items such as textiles, baby wipes and personal hygiene products.
On 31 May 2016, Sateri attained the necessary shares required to become majority partner of the company Linz Viscose Yarn Co, Ltd. The viscose fibres produced by Sateri are used to create yarn throughout the world, and acquiring the majority shares of Linz Viscose Yarn Co (Linz Nanjing) has enabled Sateri to gain a position in the viscose yarn production industry. Having acquired Linz Nanjing, Sateri is determined to further improve the quality of their viscose fibre, and to develop new viscose products for their clients.
By applying new technology and purchasing additional spinning machines, Satari plans to expand Linz Nanjing’s product range and increase its profitability. Ben Poon, Senior Vice President of Sateri, believes they will “be able to develop new and better viscose products for our customers” by introducing numerous new spinning technologies to the operation.
On 8 August 2016, Sateri confirmed having ordered machinery to expand its VSF production capacity by one million tonnes. This can possibly position the company to be the largest producer of sustainably sourced and manufactured VSF in the world by 2020. They plan on exporting 60% of the total production, while the remaining 40% will be used to meet the needs of the local textile industries. However, should the demand for VSF rise in the domestic sector, they will be ready to increase the supply. The additional capacity will be produced through already existing projects at their current operating locations, with operations starting in stages from 2018 until 2020, subject to market conditions. Sateri expects the investment for the project to exceed US$ 1.5 billion.
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