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The
Aditya Birla Group’s initiative to achieve
complete backward integration for its viscose
staple fibre (VSF) business has resulted in further
expansion and consolidation of its pulp capacities.
Accordingly, an investment of US$ 350 million
has been planned in the Lao People’s Democratic
Republic (Laos) for setting up of a project to
raise pulp wood species plantations and a pulp
plant for the VSF business.
Three
Group companies namely, Grasim Industries Limited,
India, Thai Rayon Public Co. Limited, Thailand,
and PT. Indo Bharat Rayon, Indonesia, are equity
holders in Birla Lao Pulp and Plantations Company
Limited, which was established in June 2006. The
government of Laos has approved 50,000 hectares
of land for this project. Eucalyptus plantations
will be raised on this land to provide the feed
for the pulp plant. Eucalyptus plantations normally
have a growth cycle of seven years and the plantation
will be done at the rate of 7,000 hectares per
annum.
The
project is to be implemented in two phases, first
the plantation phase and second, the setting up
of the dissolving pulp plant with a capacity of
200,000 tonnes per annum. The commissioning of
the pulp plant will coincide with the harvest
of the initial plantations in 2016.
Progress at a glance
Total planted hectares as on March 31, 2011, is 11,442 hectares.
Land acquired for further plantation in 2011 is 5,078 hectares.
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