Reliance To Acquire Trevira

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On June 24, 2004, Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited, announced at the company's Annual General Meeting in Mumbai that Reliance would soon be acquiring Trevira, a leading producer of branded polyester fibers in Europe.

Trevira has a manufacturing capacity of 130 KT/A (kilo tons per annum), spread over four locations in Europe, in Bobingen and Guben (Germany), Silkeborg (Denmark) and Quevaucamps (Belgium). In addition, it has a state-of-the-art research and development (R&D) facility at Bobingen.

The agreement to acquire Trevira is subject to certain conditions, including the receipt of regulatory approval from the European Union. This acquisition, when consummated, will be the second international acquisition by Reliance and the first international acquisition in polyester.

With the acquisition of Trevira, the combined total polyester fibre and filament yarn capacity of Reliance will exceed 1.8 million tones and it would become the largest polyester fibre and yarn capacity company in the world. Reliance's strength in the integration and the management of large scale manufacturing facilities will provide operational advantage to Trevira. At the same time, Trevira will provide Reliance a strong footprint in Europe and place it in a position to cater to a worldwide market. The synergy will provide comprehensive and innovative solutions for apparel and non-apparel applications of polyester to customers worldwide.

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http://economictimes.indiatimes.com/articleshow/753110.cms

Reliance buys German polyester firm Trevira for Rs 440 cr

TIMES NEWS NETWORK[ FRIDAY, JUNE 25, 2004 03:27:13 PM ]

MUMBAI: Reliance Industries, on Thursday, announced that it had acquired Trevira, a polyester company in Germany, for around Rs 440 crore (E80m), taking it closer to the position of the world’s largest polyester maker.

RIL, which is acquiring an overseas manufacturing facility for the first time in its history, has bought the majority stake in Trevira from Deutsche Bank.

Trevira, which was part of pharmaceutical major Hoechst, is a well-known polyester brand in Europe. It was spun off into an independent business unit in 1998. Since then Deutsche Bank has been the single largest shareholder in Trevira.

The Trevira acquisition along with other planned capacity addition by RIL will take its polyester capacity to 1.8m tonnes per annum (tpa), ahead of Taiwan-based Nan-ya which is the largest polyester producer in the world with a capacity of 1m tpa. RIL, which started with a 10,000-tpa polyester plant at Patalganga, now has a capacity of 8.9 lakh (0.89m) tpa.

Trevira, which is headquartered in Frankfurt, has a manufacturing capacity of 130,000 tpa (polyester staple fibres and filament yarns) spread over four locations in Europe — Bobingen and Guben (Germany), Silkeborg (Denmark) and Quevaucamps (Belgium). The company had a turnover of E316m in ’03 and has 1,900 employees.