Substantial contract for polyester fibre project goes ahead

A 250 million USD EPC (Engineering, Procurement and Construction) contract to build a polyester fibre plant in Hai Phong city’s Dinh Vu industrial zone was signed in Hanoi on May 14.

The deal was agreed between the PetroVietnam-Vinatex Dinh Vu Joint Stock Company (PVTex), the project’s investor and several contractors including the Huyndai Engineering Company, LG International Corp and the Oil and Gas Construction Joint-Stock Company.

The construction will take 25 months and the plant will comprise several workshops and pipelines to transfer liquid Mono Ethylene Glycol (MEG) from the wharf in Dinh Vu industrial zone, straight to the plant.

The contract will also include maintenance and the supply of spare parts and materials plus training for the plant’s technicians in its first years of operation.

The project to build the Dinh Vu plant has taken an investment capital of 324.85 million USD and the plant, when completed, will have an output of 500 tonnes of fibre a day.

This is the first project in Vietnam to produce polyester fibre from PTA (purified terephthalic acid) and MEG using advanced technologies.

At present, domestic production only meets 5-10 percent of the demand for polyester fibre for the garment and textile industry.

Once completed, the plant is expected to supply about 40 percent of the polyester fibre needed for domestic producers.

Construction of the plant is scheduled to begin on May 18 and be completed by July 2011.

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