Albany, NY -- (ReleaseWire) -- 05/05/2014 -- In recent years, the United States, Europe and Japan have successively withdrawn from the viscose fiber industry due to labor costs, environmental protection and other factors, while the Asia-Pacific Development Zone, including China, has entered a period of accelerated development of viscose fiber, with capacity and production increasing considerably. In 2013, the global viscose fiber output exceeded 4.9 million tons, up more than 13 % year on year, wherein, China contributed over 65%.
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The Austria-based Lenzing Group and the India-based Aditya Birla Group as two viscose fiber giants worldwide gained capacity of above 800,000 tons/a each in 2013. But beyond that, Chinese counterparts also obtained greater capacity.
Viscose fiber includes viscose filament yarn (VFY) and viscose staple fiber (VSF), especially VSF capacity / output accounts for about 90% in China. In 2013, China’s VSF capacity approximated 3.45 million tons, 51.8% of which came from the top five enterprises, namely Fulida Group, Sanyou Chemical, Aoyang Technology, CHTC HELON and Shandong Yamei, showing a high industry concentration.
In 2011-2013, the sluggish textile industry pulled down China’s overall prices of viscose fiber, resulting in a market downturn. However, based on promising prospects and corporate development needs, Sanyou Chemical, Sateri and Xinxiang Chemical Fiber are still planning to expand capacity with a focus on differentiated high-end products.
Being one of the Chinese VSF companies holding the highest product differentiation rate, Sanyou Chemical can reach above 80%. Following the operation of the 160,000 tons/a differentiated VSF project and the transformation of some production lines, the company, with overall VSF capacity of 480,000 tons/a as of end-2013, has became one of the largest VSF manufacturers in China. Furthermore, the company also plans to release incremental capacity of 50,000 tons through technological reform in 2014.
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Sateri had only reached 210,000 tons/a viscose fiber by the end of 2013; but as China's largest dissolving wood pulp (DWP, the main raw material for viscose fiber) supplier, it enjoys around 40% market share with obvious cost advantages. Meanwhile, Sateri is accelerating the downstream viscose fiber capacity expansion, and its Fujian plant will obtain additional differentiated viscose fiber capacity of 150,000 tons/a in 2014 (wherein, 50,000 tons/a was realized in January and March 2014 each, and the remaining 50,000 tons/a will be put into operation in the third quarter).
As one of the largest VFY producers in China, Xinxiang Chemical Fiber saw VFY capacity of 60,000 tons/a in 2013. Currently, its subsidiary Xinjiang Bailu has completed the “100,000 tons/a New-type Cellulose Project Phase I” and can accomplish full production in the first half of 2014.
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