PVtex to be revived with Indian help – PVtex Indian help

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PVtex to be revived with Indian help

Reliance Industry Company from India decided to co-operate with PetroVietnam to restart Dinh Vu polyester plant located in the northern city of Haiphong.

PVtex Indian help

Dinh Vu polyester plant suspended operations in 2015

Notably, the official plan to restart the plant will be published before September 15.

Earlier on August 23-24, the plant’s operator PetroVietnam Petrochemical and Textile Fiber JSC (PVTex), PetroVietnam, and the Indian partner held a working session to discuss co-operation plans, reaching a compromise about Reliance’s role in the plant.

Accordingly, Reliance will provide personnel for maintenance, material supply, and sales operations, among others. PetroVietnam proposed the Indian partner to buy PVTex’s stakes, but no official information is forthcoming yet.

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).

Earlier in August 2016, the Ministry of Industry and Trade (MoIT) urged PetroVietnam to accelerate the negotiation process with the Singaporean partner to reach a compromise and restart Dinh Vu polyester plant.

At the time, Fortrec Chemicals said that if the plant’s machines operate smoothly and the plant manufactures a product volume meeting the designed capacity, Fortrec would supply materials for the test operation period, while simultaneously agreeing to sign a two-year co-operation contract with PVTex.

Accordingly, Fortrec would be in charge of selling products at competitive prices. PetroVietnam submitted this plan to the government and MoIT for approval. The Singaporean partner said that the company expected to get Vietnamese authorities’ approval by July 31, 2017.

However, with the deadline passed, Vietnamese authorities have yet to reply to PetroVietnam’s plans, thus on August 8, Fortrec stated that it waited too long for Vietnamese authorities and requested PetroVietnam to submit its proposal before the authorities issue approval.

VIR