Reliance Industries Ltd (RIL) said that it has acquired Malaysian polyester producer Hualon Corp Sdn Bhd for an undisclosed sum.
When contacted, a company spokesperson said, “Reliance has reached an agreement with the receivers and managers of Hualon Corp. to acquire assets of Hualon. The acquisition will bestow RIL with more than 7 per cent global market share in polyester fibre and yarn.”
It is expected to help Reliance consolidate its position further as the largest global polyester manufacturer with 2.5 million tonnes capacity, a 25 per cent increase from the current capacity, and a rise in revenue by around $1 billion.
Hualon has manufacturing units at Nilai and Malacca in Malaysia, and is one of the largest exporters in that country. The company has highly automated plants, cutting-edge technology and advanced machinery. Hualon was placed into receivership on November 30, 2006, and Lim Tian Huat, Adam Primus Bin Abdullah and Stephen Duar, all from Ernst & Young, Malaysia, were appointed receivers and managers of the company.
The acquisition, when consummated, will be the second international acquisition in the polyester sector by Reliance, after the successful takeover of Trevira in Germany in 2004.
According to a release issued by the company, the agreement to acquire is subject to certain conditions and regulatory approvals.
– Bangalore Bureau
