Reliance Industries said on Monday it has acquired Malaysian polyester producer Hualon Corp Sdn Bhd for an undisclosed sum.

Established in 1989, Hualon is an integrated polyester-to-textile maker with half a million tons of polyester capacity, 250,000 spindles for spun yarn and facilities for weaving and processing of 5,800 shuttle-less looms. The company also has nylon filament manufacturing capability.

Reliance has "reached an agreement with the receivers and managers of Hualon Corp to acquire assets of Hualon..." a company release said.

Hualon has manufacturing units at Nilai and Malacca in Malaysia and is one of the largest exporters in that country.

The company has highly automated plants, cutting edge technology and the most advanced machinery.

Hualon was placed into receivership on November 30, 2006 and Lim Tian Huat, Adam Primus Bin Abdullah and Stephen Duar, all of Ernst &

Young, Malaysia, were appointed receivers and managers of the company.

The agreement to acquire is subject to certain conditions and regulatory approvals, the release said.

This acquisition, when consummated, will be the second international acquisition in the polyester sector of RIL after the successful takeover of Trevira in Germany in 2004.

It will help RIL consolidate its position further as the world's largest polyester manufacturer with 2.5 million tons capacity, a 25 per cent increase from the current capacity, and a rise in revenue by around one billion dollars.

"This acquisition will bestow RIL with more than 7 per cent global market share in polyester fibre and yarn," the release said.