Sateri Holdings Limited has set up a new viscose staple fiber (“VSF”) plant in Fujian, China having four identical production lines, each with an annual design capacity of 50,000 metric tons, making a total annual design capacity of 200,000 metric tons.

The Company believes that the commencement of this new state-of-the-art VSF plant will significantly boost the scale and competitive positioning of its VSF business in China.

It has begun production on the two lines. The first line commenced production in early December 2013 and has made good progress in terms of both production volume and product quality. The second line successfully started production in early January 2014. Both production lines are expected to steadily ramp-up towards full production capacity over the next few months in stages.

The remaining two production lines are currently undergoing testing and commissioning works and are expected to commence production in the coming months.

When fully completed, the total investment in the Sateri Fujian VSF plant is expected to be approximately RMB3.5 billion ($550 million) which is in line with the Company’s earlier estimates.

With the all four lines reach full production capacity, the Sateri Fujian VSF plant will add an aggregate annual design capacity of 200,000 metric tons, bringing the Company’s total annual design capacity of VSF to 360,000 metric tons