Reliance to help revive PVtex

The plant’s operator PetroVietnam Petrochemical and Textile Fiber JSC (PVTex), PetroVietnam, and the Indian partner Reliance will collaborate to restart the Dinh Vu polyester plant located in the northern city in Haiphong. PetroVietnam Petrochemical and Textile Fiber JSC (PVTex), PetroVietnam, and Reliance discussed cooperation plans last month. Reliance will provide personnel for maintenance, material supply and sales operations.

PVTex is a joint venture of PetroVietnam and Vietnam National Textile and Garment Group (Vinatex), both state-owned. 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.

Besides, PVTex also worked with domestic partners to discuss plans to collect capital to maintain the operation of the plant, while simultaneously collaborating with experts to evaluate the quality of drawn textured yarn (DTY) manufacturing lines.

At present, 24 of 29 machines are operable and the remaining machines require maintenance before joining the manufacturing process.

Previously, PetroVietnam proposed Fortrec Chemicals Company from Singapore to extend the deadline for submitting its co-operation proposals in trading and manufacturing between the two parties (the initial deadline was July 31, 2017).

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