AVILON'S VISCOSE FIBER PRODUCTION SUCCESSFULLY STARTED
Neo Industrial Plc's subsidiary Avilon has successfully started its viscose fibre production in Valkeakoski, Finland. The first batch of fibre will be produced for a Chinese customer this Friday, 14 January.
Avilon's factory startup, planned for last December, was delayed as availability of dissolving pulp - the fibre's main raw material - could not be secured. Neo Industrial sent a release concerning the delay on 18 November 2010. Production plant was started as then planned, on 3 January 2011.
The demand of dissolving pulp has recently risen heavily due to the drastic rise of the price of cotton and consequently growing demand of viscose fibre. However, the same factors enable success for Avilon's products in the future. Availability of dissolving pulp has been secured, which enables continuing production for Avilon.
One of the factory's dissolving pulp suppliers is Swedish Domsjö. Dissolving pulp is no longer produced in Finland. - Availability of the raw material will probably improve this year, as new dissolving pulp production capacity is underway in, for example, Swedenand Canada, notes director of Avilon's production plant Claus Carlsen.
Avilon continues the work of Kuitu Finland, filed for bankruptcy in 2008. It is now part of Neo Industrial's Viscose Fibre business segment.
Neo Industrial Plc
Markku E. Rentto Managing Director
FURTHER INFORMATION: Markku E. Rentto, Managing Director, tel. +358 207 209 191 Claus Carlsen, Director, tel. +358 40 728 8191
www.neoindustrial.fi
Neo Industrial Plc's strategy is to invest mainly in industrial companies with similar synergic benefits. The aim of investments is with active ownership to develop the purchased companies and establish additional value. Returns are sought both through dividend flow and an increase in value. Neo Industrial's B shares are listed on the NASDAQ OMX Helsinki main market.
Attachment:
https://newsclient.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=332128
© 2011 GlobeNewswire
