Indonesia-based PT. South Pacific Viscose (SPV), a subsidiary of Austria-based cellulosic fiber producer Lenzing AG, has commissioned its fourth viscose fiber production line. The line represents a US$150 million investment, Lenzing's largest recent single investment project and part of an overall investment of $500 million in SPV, and adds 60,000 metric tons of production capacity for textile and nonwoven applications. SPV now has an annual production capacity of 220,000 metric tons and is the largest viscose fiber production facility in Asia and the second-largest such facility within Lenzing's global operations.

As part of the investment, SPV also added a state-of-the-art 21-megawatt power station equipped with a multi-fuel fluidized boiler and attached steam turbine, a 300-metric ton-daily capacity sulfuric acid plant, a carbon disulfide recovery plant, and process- and wastewater facilities. Lenzing reports these improvements have brought SPV into compliance with the latest environmental standards. In addition, SPV has initiated a debottlenecking program to increase annual production capacity to 238,000 metric tons.

"Indonesia and the whole of Asia are Lenzing's single most important sales market. The extension of PT. South Pacific Viscose ... marks our commitment to our customers in this part of the world," said Peter Untersperger, chairman of Lenzing's Management Board. He added that once all of Lenzing's current investment projects are completed in 2012, about half of the group's projected total fiber production capacity, or 378,000 metric tons, will be located in Asia. In the longer term, Lenzing plans to have an overall capacity of one million metric tons and projects more than half of that will be located in Asia.

SPV is one of the biggest employers in the region, having a workforce of 1,656 employees, and also provides financial support to schools, child and health care facilities in its community.

May 19, 2010