Reliance signs agreement to acquire assets in Malaysia Consolidating global polyester vision
Released on: September 12, 2007, 4:33 am
Press Release Author: Newage
Press Release Summary: This will help RIL consolidate its position further as the World's largest polyester manufacturer with 2.5 million tonnes capacity, 25% increase from the current capacity and increase in revenue by around USD one Billion.
Press Release Body: Reliance Industries Limited (RIL) announced on 10 september 2007 that it reached an agreement with the Receivers and Managers of Hualon Corporation (M) Sdn Bhd (Receivers and Managers Appointed) [Hualon] in Malaysia, to acquire assets of Hualon. Hualon is a leading polyester producer in Malaysia with a polyester (fibre, yarn and resin) manufacturing capacity of half a million tons per annum along with downstream textile manufacturing capabilities spread over two locations in Malaysia namely, Nilai and Malacca. It is one of the largest exporters in Malaysia.
This agreement is an important step towards the acquisition of assets of Hualon. The agreement to acquire is subject to certain conditions and regulatory approvals.
This acquisition, when consummated, will be the second international acquisition in the polyester sector of RIL after the successful takeover of Trevira in Germany in 2004. This will help RIL consolidate its position further as the World's largest polyester manufacturer with 2.5 million tonnes capacity, 25% increase from the current capacity and increase in revenue by around USD one Billion. This acquisition will bestow RIL with more than 7% global market share in polyester fibre and yarn.
Commenting on this development Shri Mukesh Ambani, Chairman, Reliance Industries, said "Reliance celebrates its silver jubilee in polyester business with the acquisition of Hualon. 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."
This acquisition will help to achieve global vision of Reliance polyester sector through easy access to other Western markets. Reliance's existing R&D will help the industry in Malaysia to launch innovative products catering to high value premium segments. The integrated facility at Hualon will help RIL to comprehend the entire textile value chain and hasten new product developments in polyester.
Hualon: Established in 1989, Hualon is an integrated polyester to textile manufacturing company in Malaysia with half a million tons of polyester capacity, 250 000 spindles for spun yarn manufacturing, 5800 shuttleless looms for weaving along with processing facilities. The company also has nylon filament manufacturing capability.
The company has highly automated plants, cutting edge technology and the most advanced machinery.
Hualon was placed into receivership on 30th November 2006 and Mr Lim Tian Huat, Mr Adam Primus Bin Abdullah and Mr Stephen Duar, all of Ernst & Young, Malaysia were appointed the receivers and managers of Hualon with effect from that date.
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