Strategic cooperation agreement signed on supply of PVN's polyester fiber to Vinatex.
The Vietnam Oil and Gas Group (PVN) and the Vietnam National Textile and Garment Group (Vinatex) signed a strategic cooperation agreement on August 5 regarding the purchase of polyester fiber produced by the Dinh Vu PetroVietnam Petrochemical and Textile Fiber Joint Stock Company (Dinh Vu PVTEX).
Vinatex committed to purchasing as much fiber products from Dinh Vu PVTEX as possible and to use no less than 50 per cent of that purchased in its production.
PVN, meanwhile, committed to directing Dinh Vu PVTEX to provide polyester fiber products of good quality and competitive prices for Vinatex. The agreement also provides for close cooperation in the development of markets when Vinatex uses polyester fiber products of Dinh Vu PVTEX as inputs for export production lines.
Dinh Vu PVTEX was the first polyester fiber plant in the north, in Hai Phong, with total design capacity of 175,000 tons of fiber per year using advanced technology. Both groups have expressed their determination to implement a localization policy on raw materials.
According to General Director and Chairman of the Board of Directors at PVN, Mr. Quoc Khanh, the capacity of the plant can meet about 40 per cent of market demand for fiber, ensure the supply of raw materials of stable quality, reduce the import of raw materials, and avoid fluctuations in the exchange rate.
On May 15, 2007 an agreement to build the first polyester manufacturing plant in Vietnam was signed between PetroVietnam and the Vietnam Textile and Garment Group. As a result of the agreement the PetroVietnam Petrochemical and Textile Fiber Joint Stock Company was established on March 22, 2008.