Birla Acquires Domsjö Fabriker Pulp Operations
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Aditya Birla Group, India, has acquired Domsjö Fabriker, a Swedish specialty pulp and bio-refinery company, through its global companies Thai Rayon Public Co. (Thailand) and Indo Bharat Rayon (Indonesia), for a sum of $340 million from a Swedish consortium. Specialty pulp produced by Domsjö is primarily used in the textile segment (VSF—viscose staple fiber and viscose filament yarn). Some 25% of the production is used in premium applications, such as binding agents for medical products, particularly pharmaceutical tablets and in casings (wraps) for the food industry.
In addition, the biorefinery allows the company to extract the full value from its operations by the production of ethanol and lignosulfate as by-products. Ethanol obtained from the bio-refinery is used in biofuel, paint, and printing sectors. Lignosulfate is used as an additive in concrete, ceramics, and dye pigments, among others. The production process is environmentally sensitive with low levels of emissions. The bleaching process for pulp is totally chlorine free (TCF) and is conducted through a unique closed loop bleaching process. Domsjö thus meets the highest environmental standards.
Kumar Mangalam Birla, chairman of the Aditya Birla Group, noted that "the acquisition of Domsjö Fabriker, a world-class company with the most environmentally-friendly technology, marks a significant milestone for our Pulp & Fibre business. Its cutting edge technology and production process coupled with a state-of-the-art biorefinery, add significant value to our Pulp & Fibre operations. Its high quality pulp will enable us to enhance the supply of top quality premium VSF to our customers. The Pulp & Fibre business is a core business of the Aditya Birla Group. Domsjö has a highly professional management team and a committed staff. I most warmly welcome them to the Aditya Birla Group."
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