Sateri is expanding by acquiring a viscose mill in China, bringing the company’s total number of viscose mills in China to six.
Sateri’s five current mills in China collectively produce about 1.5 million tons of viscose fiber yearly. The company also produces textile yarn, spunlace non-woven fabric and Lyocell fibers.
The company has entered into agreement with Funing Aoyang Technology Co, Ltd. to acquire its viscose fiber business, which produces 330,000 tons per annum. The acquisition will boost Sateri’s annual production capacity to more than 1.8 million tons.
Funing Aoyang is a subsidiary of listed company Jiangsu Aoyang Health Industry Co., Ltd. Its 330,000-tonne per annum mill that will be acquired by Sateri under the agreement, is located in Aoyang Industrial Park, Funing County, Jiangsu Province. Sateri is a member of the RGE group of companies; RGE manages a group of resource-based manufacturing companies with global operations spanning Indonesia, China, Brazil, Spain and Canada.
“We will invest in advanced technologies to upgrade the mill so as to enhance its process technology, safety and environmental performance,” he added. “Through better management and operational excellence, we hope to make a positive impact to the local economy and accelerate the sustainable development of the industry.”
Sateri’s president, Allen Zhang, said that the acquisition would improve the company’s ability to serve customers in eastern and northern China.