Indonesia’s viscose rayon producer gets boost from Singapure-based RGE Group investment in R&D

JAKARTA, Dec 5, 2019, Jakarta Globe. Asia Pacific Rayon (APR), the first fully integrated viscose rayon producer in Asia, is set to get a boost with the recent announcement by Royal Golden Eagle (RGE) Group of its plans to invest $200 million in research and development over the next 10 years, Jakarta Globe reported.

With an annual production capacity of 240,000 tons of viscose fiber, APR — which is part of the RGE Group — aims to be the largest single-location manufacturer of viscose-rayon and a leader in the production of high quality viscose fiber.

APR produces versatile viscose rayon that can be applied to apparel, home textiles and technical textiles. It is made from natural wood cellulose sourced from sustainably managed plantations.

“RGE’s investment will also help APR to further support the development of Indonesia’s textile industry by reducing the country’s dependence on cotton and viscose imports. This is in line with the country’s ‘Making Indonesia 4.0’ roadmap, which prioritizes the development of five manufacturing sectors, including textiles, to boost exports and GDP,” APR Director Basrie Kamba said in a statement.

The investment will be spread out over the next 10 years and will support solutions in alternative cellulose or plant-based feedstock and closed-loop manufacturing. Of the total investment, 70 percent will go to scaling up proven clean technology in fiber manufacturing, 20 percent to bringing pilot scale production to commercial scale and 10 percent to R&D in emerging frontier solutions.

“This is a strategic business growth area for RGE. Our integrated portfolio of companies across pulp, fiber and yarn production puts us in a unique upstream position in the textile value chain to realize commercial scale and affordable solutions that support downstream manufacturers and brands,” RGE Vice Chairman Bey Soo Khiang said.

“We aspire not just to be the largest viscose producer but also to be a leader in sustainable textile fiber production through innovation.”

Through its business groups Sateri in China and Asia Pacific Rayon (APR) in Indonesia, Singapore-based RGE is the world’s largest viscose producer with a total annual production capacity at 1.4 million tons. Sateri and APR source wood-based dissolving pulp from sustainably managed renewable plantations in Indonesia and Brazil through RGE-managed companies, APRIL and Bracell.

The move by RGE aims to meet increasing demands for fibers as well as promote environment-friendly industrial process.

“This commitment responds to two pressing environmental challenges facing the textile industry: increase in demand for both synthetic and natural fibers for textile production and increase in textile waste. Recycled textile waste as a feedstock tackles both issues simultaneously,” Ben Poon, Deputy Head of APR, said.