Reliance Industries To Acquire Malaysian Polyester Manufacturer

Reliance Industries Ltd. (RIL), India, has signed an agreement with the receivers and managers of Hualon Corp. (M) Sdn Bhd, a Malaysia-based polyester manufacturer and exporter, whereby RIL will acquire assets of Hualon — including 250,000 spindles for spun yarn manufacturing, 5,800 shuttleless weaving looms, processing facilities and an annual polyester production capacity of half a million tons — for an undisclosed sum. The purchase also will include downstream textile production capabilities at facilities in Nilai and Malacca, as well as nylon filament manufacturing capability.

The acquisition - the second such international polyester sector acquisition by RIL following its takeover of Germany-based Trevira in 2004 - will increase its current manufacturing capacity by 25 percent, its revenue by US$1 billion and global market share in polyester fiber and yarn by more than 7 percent.

"Reliance celebrates its silver jubilee in polyester business with the acquisition of Hualon," said Shri Mukesh Ambani, chairman, Reliance Industries. "The integrated assets of Hualon will help RIL to strengthen its position in the entire textile value chain and RIL will graduate to become a solution provider to the global textile industry. This acquisition reiterates our strong commitment to the growth of polyester."

November/December 2007

 

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