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T South Pacific Viscose (SPV), a subsidiary of the world’s leading viscose fiber producer, Lenzing Group AG, of Austria, will build its fifth production line in Purwakarta, West Java, this year with an investment worth US$130 million.

The new plant, which would start operation in December 2012, was expected to produce 80,000 tons of viscose fibers annually, SPV president director Wolfram Kalt said on Thursday.

“Our fifth production line will increase SPV’s total production capacity to 325,000 tons per annum in 2013, making it the largest viscose fiber producer in the world,” he said.

SPV, which operates four production lines in Purwakarta with a total annual production of 240,000 tons, is currently the biggest viscose fiber supplier in Asia.

Out of the total production, 80,000 tons originate from its fourth production line, which took a $150 million investment and began its operation in May last year.

Kalt said that the products from the new line, especially bright fibers for high speed spinning technology, would mainly serve domestic textile industries.

Right now, around 60 percent of SPV’s output fulfills domestic demand, while the rest is exported to other Asian countries such as Turkey, Pakistan and India. Last year’s SPV exports were worth $250 million.

Chairman of Lenzing Management Board Peter Untersperger said that his firm continued its investment in Indonesia because it wanted to tap into the country’s huge and fast-growing market. 

“Indonesia’s market is so dynamic. It will keep on growing and bring us more customers,” he said.

Untersperger expected to increase its market share in Indonesia up to 20 percent from 17.9 percent in upcoming years, in line with the estimated growth of per capita consumption of viscose fibers from six kilograms (kg) to 14 kg by 2020. 

Currently, Indonesia is its second largest market after China which controls 22.1 percent of the market share.

Lenzing group is the world’s largest viscose fiber producer in the world, with a total annual output of 700,000 tons. In Asia, it runs plants in Indonesia and China. (lnd)