By NNN-Bernama
Kuala Lumpur : India’s largest private sector company, Reliance Industries Limited, is to acquire Hualon Corporation (M) Sdn Bhd, the polyester producer in Malaysia which is under receivership.
Ernst & Young Malaysia (E&Y) has been appointed receivers and managers of Hualon effective Nov 30, 2006 with the appointment of Lim Tian Huat, Adam Primus Abdullah and Stephen Duar, all of E&Y.
The acquisition, when consummated, will be Reliance’s second international acquisition in the polyester sector following the successful takeover of Trevira in Germany in 2004, E&Y said in a statement here Monday.
Reliance said it reached an agreement with E&Y to acquire the assets of Hualon, which is a leading polyester (fibre, yarn and resin) manufacturer with a capacity of half a million tons per annum. This includes its downstream textile manufacturing capabilities spread over two locations in Malaysia in Nilai and Melaka.
Reliance Industries is India’s largest private sector company on all major financial parameters with a turnover of 25.51 billion USD.
The acquisition of Hualon, one of the largest exporters in Malaysia, would consolidate its position further as the world’s largest polyester manufacturer with 2.5 million-tonne capacity, a 25 per cent increase from its current capacity and increase in annual revenue by around one billion USD.
“This acquisition will bestow Reliance with more than seven per cent global market share in polyester fibre and yarn,” Reliance said.
Commenting on the development, Shri Mukesh Ambani, the chairman of Reliance Industries, said: “The integrated assets of Hualon will help Reliance to strengthen its position in the entire textile value chain. The company will graduate to become a solutions provider to the global textile industry as the acquisition reiterates its strong commitment to the growth.”
It would also help Reliance achieve its global vision through easy access to other Western markets.
“Reliance’s existing research and development will help the industry in Malaysia to launch innovative products catering to high-value premium segments,” he said.
Ambani said Hualon’s integrated facility would help Reliance to comprehend the entire textile value chain and hasten new product developments in polyester