PVTex Signs Engineering Contract to Build Dinh Vu Polyester Plant18 May 2009 • by Natalie Aster
The PetroVietnam Petrochemical Fibre Joint Stock Company (PVTex) and a consortium signed an engineering, procurement and construction contract in Ha Noi yesterday to build one of the country’s biggest polyester plants worth US$324 million in the Dinh Vu Industrial Zone, in Hai Phong.
PVTex was established in 2007 to construct the Dinh Vu polyester plant with investment cooperation between the Viet Nam Oil and Gas Group (PetroVietnam) and the Viet Nam Textile and Garment Group (VINATEX).
Consortium members include contractors from Hyundai Engineering Co, LG International Corp and the PetroVietnam Construction Joint Stock Corp.
It will be the first polyester plant in northern Viet Nam equipped with modern technology and equipment on a Total area of 15ha. It is designed for a capacity of 500 tonnes per day and is expected to be completed by July 2011.
Dinh Vu is a component of the master plan for development of Viet Nam’s chemical industry until 2010. The plan was approved by the Prime Minister in Decision No 343/2005/QD-TTg issued in 2005.
The project will help guarantee stable and long-term supply of raw materials for the textile and garment industry, create jobs, stimulate economic growth and attract investment to Hai Phong City.
The drastic drop in price of crude oil in the second half of 2008 and in the beginning of 2009 as a result of the global economic crisis created challenges for PetroVietnam in execution of investment projects as planned, PetroVietnam said.
Although several domestic projects must be put on hold or extended, the continuation and speed-up of this project’s implementation represented the determination of PetroVietnam, the group said.