Viscose Staple Fiber prices witnessed marginal declines. 1.2D dull VSF in India was at US$2.68/kg(3 cent lower). VSF in China remained steady at US$2.25/kg.

Canada - Paper mill gets $10M loan [ 17 Jun, 2008]

The New Brunswick government is loaning $10 million to a mill in Nackawic to help pay for new technology that could lead to an expansion and more jobs in the future.

AV Nackawic is spending $90 million to convert from producing paper to producing rayon for clothing.

The company is using advanced technology from Austria to take wood and produce both high-grade viscose, which is used to make rayon, and hemicellulose.

Mill CEO Peter Vinall said the market for rayon is growing at a rate of seven per cent a year.

He said the company's business plan is strong and AV Nackawic will be able to repay the province's loan.

Vinall said the $90-million investment won't initially add to the 300 jobs currently at the mill.

Source: timetranscript

Indonesia - Indo Bharat spends $50m for new line [ 02 Jun, 2008]

Rayon fiber producer PT Indo Bharat Rayon spent US$50 million for a sixth production line at its plant in Purwakarta, West Java, an official says.

President director Prakash Maheshwari said recently the new line would enable the company to maintain its 60 percent market share in the industry.

The company, which is a unit of India's Aditya Birla Group, has invested a total $200 million over the past five years in Indonesia, employing more than 2,000 workers.

The group earns on average $600 million in revenues annually in Indonesia. -

Source: thejakartapost.com