Sateri begins production at its new 200,000 tonnes/year viscose staple fiber plant in Fujian, China; two of four production lines currently running with remaining two lines expected to commence production in coming months

HONG KONG , January 3, 2014 (press release) – Sateri Holdings Limited (the “Company”) is pleased to announce that production has started at its new viscose staple fiber (“VSF”) plant in Fujian, China.

The Sateri Fujian VSF plant consists of four identical production lines, each with an annual design capacity of 50,000 metric tons, making a total annual design capacity of 200,000 metric tons. The first line commenced production in early December 2013 and has made good progress in terms of both production volume and product quality. The second line successfully started production in early January 2014. Both production lines are expected to steadily ramp-up towards full production capacity over the next few months in stages. The remaining two production lines are currently undergoing testing and commissioning works and are expected to commence production in the coming months.

When fully completed, the total investment in the Sateri Fujian VSF plant is expected to be approximately RMB3.5 billion (approximately US$550 million) which is in line with the Company’s earlier estimates. When all four lines reach full production capacity, the Sateri Fujian VSF plant will add an aggregate annual design capacity of 200,000 metric tons, bringing the Company’s total annual design capacity of VSF to 360,000 metric tons. The Company believes that the inception of this new state-of-the-art VSF plant will significantly enhance the scale and competitive positioning of its VSF business in China.

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