AS A result of rapid growth in demand, Courtaulds has revised investment plans for its third Tencel unit at Grimsby, UK. Both production lines will start up simultaneously rather than in two phases.
The plant will come onstream in mid-1997 and be fully operational by Q1 1998. Capacity is set at 42 000 tonne/year. Investment costs will amount to £120m ($186m).
The company's second unit at Mobile, Alabama, US, is currently being commissioned.
Capacity has increased from 18 000 tonne/year to 43 000 tonne/year. Further expansion is planned over the next 18 months to 55 000 tonne/year as the company incorporates new technology.
Courtaulds has said there is sufficient demand to use all of this new capacity immediately.
Demand is accelerating and Tencel will move from loss into profit this year, Courtaulds claimed.