OREANDA-NEWS. August 09, 2012. Carbatec Ltd, the technology company of Neo Industrial's Viscose Fibre Segment, has signed a letter of intent with a large Chinese textile fibre manufacturer for licensing its paper pulp viscose technology (PPV® technology) to viscose fibre plants in China, as the company said in the press release received by Lesprom Network.

“Signing this letter of intent is an important step towards full-scale commercialization of our technology. The uncertain prospects on the dissolving pulp market increase the interest towards technologies for using alternative raw-materials, especially in China with its fast-growing viscose fibre industry. Efficiency, quality and environmental factors are the key targets of our technological development projects - and are in strong demand on our global market,” says Heikki Hassi, Managing Director of Carbatec Ltd.

The PPV® technology, patented by Carbatec Ltd, has been developed and applied in industrially scale at Avilon Ltd's viscose fibre plant in Valkeakoski. This technology enables the usage of paper pulp in viscose fibre manufacturing, offering a considerable competitive edge for viscose fibre manufacturers, as the price of the paper pulp is lower than dissolving pulp. PPV® technology improves also the fibre quality.

The present market potential of PPV® technology on the viscose fibre and cellophane film industry is about 1 million capacity tons per year, resulting in savings of approximately USD350 million in raw-material costs of PPV customers, estimated by the average price or raw-material.

CellMark Ab, the global supply chain service company selling and marketing the PPV® technology and licenses developed by Carbatec Ltd is the third party of this letter of intent.