01 July 2010 09:18 [Source: ICIS news]
MUMBAI (ICIS news)--Indian firm Nakoda Ltd has acquired a polyester fibre manufacturing facility in Kyunghan, South Korea for $40m (€32.8m), the yarn producer said on Thursday.
Nakoda, through its subsidiary, Indo Korean Petrochem Ltd, acquired the 100,000 tonne/year plant from Kyunghan Industry Co, said BG Jain, chairman and managing director of Nakoda, in a statement to the Bombay Stock Exchange.
The investment, which would raise Nakoda’s polyester yarn-making capacity to 140,000 tonnes/year by September, would be financed through debt and internal accruals, Jain said.
Surat-based Nakoda also has plans to invest around Indian rupee (Rs) 15bn ($323m) to raise its polyester yarn capacity to 500,000 tonnes/year in India and overseas by 2013, according to the statement.
“We plan to work, collectively, to close similar deals in the future to expand our network across the globe,” said Jain.
Nakoda would benefit from the plant's strategic location, which is an industrial hub for synthetic fibre manufacturing in South Korea, he added.
The entire output of the facility would be easily absorbed in the South Korean market, Nakoda said.
($1 = €0.82 ; $1 = Rs 46.43)
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