Discussions are under way between PetroVietnam and textile and clothing conglomerate Vinatex, both state-owned, for a possible resumption of operations at the Dinh Vu Polyester Fibre Plant (PVTEX). The plant, with an investment of about $325 million, was set up to use feed from the Dung Quat oil refinery in the central Quang Ngai province to produce fibre.
PetroVietnam owns 75 per cent of the plant based in Dinh Vu Economic Zone in the northern port city Haiphong. The plant stopped production in October 2015 due to losses after the first year of operations. The plant’s accumulated losses are around $68 million.Discussions are under way between PetroVietnam and textile and clothing conglomerate Vinatex, both state-owned, for a possible resumption of operations at the Dinh Vu Polyester Fibre Plant (PVTEX). The plant, with an investment of about $325 million, was set up to use feed from the Dung Quat oil refinery in the central Quang Ngai province to produce fibre.#
PetroVietnam's general director Nguyen Vu Truong Son said that the group is actively cooperating with related bodies in order to bring the fibre plant back into operation — the sooner the better, a leading English-language business daily in Vietnam reported.
According to Vinatex, the annual demand for fibre of the domestic textile and clothing industry is 500-600,000 tonnes, out of which Vinatex alone needs 60,000 tonnes.
Due to earlier complaints of lack of quality consistency between different batches of the PVTEX fibres, Vinatex and Vietnam Textile Research Institute will ensure product quality this time. (DS)
Fibre2Fashion News Desk – India
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