ENKA starts joint venture activities in China

28.02.2006

ENKA GmbH & Co. KG, Wuppertal/Germany, and Jilin Chemical Fibre Stock Co., Ltd., Jilin/China, are planning to establish a joint venture company with a capacity of 5,000 tons/year viscose filament yarns in Jilin (North East China). Therefore, in February 2006 both parties signed the related joint venture agreements. All agreements are still under the proviso that all necessary approvals will be issued by the relevant authorities.

ENKA will provide know how, machines and equipment to the joint venture, which will start its operation in 2007. The new company Jilin ENKA Viscose Co., Ltd will produce in Jilin viscose filament yarns under ENKA's differentiated continuous spinning technology and will distribute its products under the trademark “ENKA” in China. ENKA will distribute the joint venture products worldwide outside China and will continuously supply the products to the ENKA customers.

“The establishment of a joint venture company in China marks a strategic milestone for our company. This project, which is aiming to further extend our market position, was prepared over a long period.” says Thomas Schneider, Managing Director of ENKA. “Due to the fast and ongoing relocation of the textile chain to China, it is imperative for our company not only to serve the demanding textile and fashion industry in Europe, but also to offer our products in Asia at the front door of the Chinese garment industry. A lot of consideration has been given to the choice of the right partner for our project: Jilin is the market leader in the production of high-value viscose filament yarns in China. Jilin's production is highly efficient and the company is well-experienced in the cooperation with foreign partners.”

At the chemical fibers site in Jilin, app. 7,000 employees are producing viscose filament yarns (22,000 tons/year), viscose staple fibers (55,000 tons/year) and acrylic fibers (today 75,000 tons/year). The Jilin Chemical Fibre Group distributes its products mainly in the Asian market, especially in China.

ENKA GmbH & Co. KG, Wuppertal/Deutschland, has three production sites in Germany and one production site in Poland and produces with 1,100 employees high-value viscose filament yarns (18,000 tons/year). ENKA distributes its products worldwide under the trademark “ENKA” to demanding textile fabrics producers. ENKA is part of the privately owned International Chemical Investors Group, an investment company focusing on mid-sized chemical businesses with leading positions in niche markets, operating in competitive environments