Sateri signed an investment agreement with the municipal government of Jiujiang in Jiangxi province to expand its viscose staple fibre capacity in China by up to 1 million tons per year.
Sateri is currently the largest producer of viscose in China, with annual capacity in excess of 550,000 tons from its three mills in Fujian and Jiangxi provinces.
With investment of 12 billion yuan ($1.75 billion), the latest expansion in Lianxi, Jiujiang, will be executed in four phases of 250,000 tons each. Construction of the first phase is scheduled to start in the 4Q of this year.
Coupled with the expansion plans at its mill in Hukou, Jiujiang, the companys total capacity in Jiujiang city is expected to exceed 2 million tons per year, advancing Sateris plans to become the world’s largest producer of viscose fibre. In Hukou, a 160,000-ton expansion is already under construction and is expected to start up in early 2018.
Sateri, managed by the Royal Golden Eagle (RGE) group, will also invest in feedstock production and work with the Jiujiang government to attract investment from spun yarn and non-woven companies to build a complete industry chain.
Including other production bases in China and internationally, Sateri has plans to build up to 3 million tons of annual capacity of viscose fibre by 2025. The pace of expansion will be adjusted according to market conditions.
