Reliance Industries plans major capacity expansion

April 13th, 2011 - 8:23 pm ICT by IANS  

New Delhi, April 13 (IANS) India’s largest private sector player Reliance Industries Limited (RIL) Wednesday said it was expanding its polyester manufacturing capacity in a major way to capitalise on the growing demand for such kinds of fibre.

“This is RIL’s largest capacity expansion in the sector and is aimed at consolidating its position as the world’s largest integrated polyester producer,” the company said in a statement.

Explaining the need to ramp up capacity, RIL said global supply constraints, substantial price increase and uncertain outlook for cotton availability were creating considerable substitution opportunities for products like Polyester Filament Yarn (PFY) and Polyester Staple Fibre (PSF).

It is expected that polyester will capture around 80 percent of incremental global fibre demand of around 2.9 million tonnes per annum over the medium to long term.

Demand for Polyethylene Terephthalate (PET), which is already India’s fastest growing polymer, is also poised for exponential growth due to continued demand in the bottling, packaging and food and beverages sectors.

“With its strong manufacturing presence in India and Malaysia, cost leadership position and wide product range, Reliance is uniquely positioned to benefit from this market growth,” the statement added.

The expansion includes:

- A planned capacity of 2.30 million tonnes of Purified Terephthalic Acid at Dahej with the ability to increase it by another 1.15 million tonnes at a later stage.

- These plants will be integrated with the Paraxylene plants at Jamnagar in Gujarat for raw material and will in turn cater to the new polyester plants being constructed simultaneously.

- 395,000 tonnes of PFY and 140,000 tonnes of Polyester Texturised Yarn at Silvassa, Dadra and Nagar Haveli.

- 540,000 tonnes of PET at Dahej with the option to add 540,000 tonnes of PET at the same location at a later stage

- 290,000 tonnes of PSF at Dahej

- These plants will be integrated with Reliance’s captive Purified Terephthalic Acid (PTA) and Mono Ethylene Glycol (MEG).

All the above projects are under various stages of implementation ranging from technology licensing, basic engineering and obtaining the necessary regulatory approvals, the company said.

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