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India - Garden Silk to expand polyester yarn, chips capacity by 15% [ 27 Sep, 2009]
Having doubled its manufacturing capacity for polyester chips and polyester yarn close to a year ago, Surat-based Garden Silk Mills Ltd., known for its 'Garden Vareli' brand of polyester sarees, is now planning to up the ante again.
In order to cater to all segments of polyester chips in the domestic market and abroad, Garden Silk Mills is planning to expand its production capacity for polyester chips, partially oriented yarn (POY) and polyester textured yarn (PTY) by 10-15 per cent again.
Refusing to divulge the investment details, a company officials of Garden Silk Mills said, "While we had doubled our production capacity last year, we were still not catering to all the segments in polyester chips and polyester yarn. Therefore, we are expanding the capacity again by 10-15 per cent. The additional capacity is expected to commission by March 2010." Garden Silk Mills' existing capacity is around 1,600 tonnes per day for polyester chips, 430 tonnes per day for POY and 110 tonnes per day for PTY.
Moreover, riding on the back of this capacity expansion, Garden Silk Mills is looking to tap fresh export markets like Latin America, Egypt, Europe and China, the official added. The company is also expecting the share of exports to rise from below five per cent to about 15 per cent by March 2010.
"We are looking at newer markets for exports like Latin America, Egypt, Europe and China where we are witnessing a rise in demand. However, we are facing some tough competition from countries like Taiwan and Korea," the official said.
Apart from chips and yarn, Garden Silk Mills also manufactures filament yarn at a capacity of 40 tonnes per day. Garden Silk Mills runs around 37,000 texturising machines from its two plants, one each at Vareli and Jolwa.
Banking on the latest expansion, Garden Silk Mills is hoping to peg a turnover of over Rs 3,000 crore. For the financial year 2008-09, the company earned a revenue of close to Rs 1,400 crore.
Source: Business Standard
Wellman issues 3 cents/lb PET price hike for August on cost push [ 21 Jul, 2009]
Wellman Inc has issued a 3 cents/lb PET resin price increase for August on pressure from upstream costs, a company source said Tuesday.
On costs, US MEG contracts are slated to go up 3 cents/lb following an announcemnt by MEGlobal that its North American benchmark was to jump to 34 cents/lb in August from 31 cents/lb in July. US MEG contracts tied to an Asia Contract Price mechanism will also see increases as ACP's were nominated at $740/mt CFR Asia, up $70-$120/mt from July depending on the supplier.
Paraxylene contracts also had upward momentum as August's Asia CP nominations were so far at $1,040/mt (Idemitsu Kosan) and $1,060/mt (ExxonMobil). July's CP was partially settled at $960/mt CFR. With August spot prices in Asia at just under $1,070/mt CFR for H1 August cargoes and near $1,060/mt CFR for the second half of August cargoes; there was a high probability of August's contracts to conclude close to the spot price. As the US PX CP tends to follow Asia, market participants believed the contract in
August would settle higher than July's 47 cents/lb CP.
PET makers have said their margins were razor thin with July prices in the low 60's cents/lb. In order to maintain those margins, they'd need to at least raise resin prices as much as costs.
Another producer was getting ready to follow Wellman's price initiative but as the company typically gives its buyers at least 15 days notice before a price increase, it needed to figure out how to word the announcement. One possibility was for the company to resurrect its failed June 4 cents/lb price hike and reinstate it for August, a producer source said.
Source: Platts.com
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