COURTAULDS may set up a Tencel manufacturing plant in India after completion of intensive market testing.
The move would be its second major investment in Asia. The company will announce the location of its first Asia Pacific Tencel plant later this year. It has drawn up a shortlist for the location of the Asia Pacific plant - South Korea, Indonesia and Singapore.
'As for India, we will first have to see how strong the domestic market is,' said Alan Jones, Courtauld's commercial director for Tencel in Asia Pacific.
Courtaulds has launched a Tencel marketing tie-up with five Indian mills - Arvind, Raymond, Morarjee, Garden Silk and Madura Fabrics. The mills will use Tencel, a 100% natural solvent-spun cellulosic fibre, to manufacture either 100% Tencel fabric or a blend with other fibres.
Jones told ACN that a decision on a Courtaulds Tencel plant in India was far from imminent. 'It will probably be the next century before we come to the conclusion as to whether it is worthwhile producing Tencel at a plant in India,' he said.
Courtaulds has a worldwide Tencel capacity approaching 100 000 tonne/year.