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Sateri to Grow Viscose Scale With Funing Aoyang Acquisition

Looking to increase its viscose production standing even further, Sateri has entered into an agreement with Funing Aoyang Technology Co. Ltd. to acquire its viscose fiber business.

Sateri said the deal is part of its growth strategy that will bring the total number of viscose mills it owns in China to six and annual production capacity to more than 1.8 million tons.

Funing Aoyang is a subsidiary of public company Jiangsu Aoyang Health Industry Co. Ltd. Funing Aoyang’s 330,000-ton annual capacity mill that will be acquired by Sateri under the agreement is located in Aoyang Industrial Park in Funing County, Jiangsu Province.

Sateri is a member of the RGE group of companies, which manages a group of resource-based manufacturing firms with global operations spanning Indonesia, China, Brazil, Spain and Canada.

“This acquisition will boost Sateri’s market footprint and further strengthen our ability to serve customers in eastern and northern China,” Allen Zhang, Sateri’s president, said. “We will invest in advanced technologies to upgrade the mill so as to enhance its process technology, safety and environmental performance. Through better management and operational excellence, we hope to make a positive impact to the local economy and accelerate the sustainable development of the industry.”

Last year, Sateri launched its sustainability vision for 2030 to guide the company’s strategic growth in the coming decade. The plan encompasses notable targets including net-zero carbon emissions by 2050, achieving 98 percent sulfur recovery rate at all its mills by 2025, utilizing textile waste and producing viscose products with 50 percent recycled content by 2025 and 100 percent by 2030, and supporting more than 300,000 local families and smallholder farmers to develop sustainable livelihoods.

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It was also seen in part as a response to a 2018 Canopy “Hot Button” report, a snapshot of viscose producer progress, in which Sateri got a “red jacket” due to its sourcing of wood from “plantations situated on high carbon peat lands,” that have vast stores of carbon at risk of being released into the atmosphere by global warming and climate change.

Canopy said last year in an update that “despite the work that remains to be tackled, Canopy is encouraged by the initial steps taken by Sateri and is committed to continued, constructive discussion and actions.”

Sateri is considered the world’s largest producer of viscose fiber, a natural and sustainable raw material found in consumer products such as textiles, apparel, baby wipes and personal hygiene products. Its five mills in China collectively produce about 1.5 million tons of viscose fiber yearly.

Sateri also produces yarn, spun-lace nonwoven fabric and lyocell fiber. In March, the company said it plans to expand its lyocell production in China that would lead to annual capacity of up to 500,000 tons by 2025. Another 100,000-ton plant will be built in Nantong, Jiangsu province, later this year.

Headquartered in Shanghai, the company has a sales, marketing and customer service network covering Asia, Europe and the Americas. The closing of the acquisition is subject to procedural approvals by relevant authorities.