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RIL to help PetroVietnam revive Dinh Vu plant

Sep 13, 2017
RIL to help PetroVietnam revive Dinh Vu plant

Reliance Industries Limited (RIL) will collaborate with PetroVietnam to restart the Dinh Vu polyester plant in Haiphong. Plant operator 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.

The official plan to restart the plant will be published before September 15, according to a report in an online newspaper in Vietnam. 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.