A corner of PVTEX Dinh Vu Yarn Plant (Source: PVN)

Hanoi (VNA) - The PVTEX Dinh Vu Yarn Plant of PetroVietnam’s Petrochemical and Textile Fiber Joint-Stock Company (PVTEX) on January 31 put two more yarn production lines into operation, lifting the total number of its lines to 12.

According to General Director of PVTEX Dao Van Ngoc, the plant has produced 2,900 tonnes of draw textured yarn (DTY), and sold 2,500 tonnes of product since April 20, 2018.

PVTEX signed contracts to sell 1,338 tonnes of DTY to 21 customers with a total value of 49.5 billion VND.

Ngoc added that the firm and its partner An Phat Holdings JSC (APH) are maintaining the remaining DTY production lines, towards lifting the total capacity of the plant to 25 lines in the second quarter of this year.

PVTEX and APH are working together to build a five-year production cooperation plan and negotiating a collaboration contract, which is expected to be inked in the first quarter of this year.

PVTEX is also building a capital-restructuring plan in 2019 in accordance with the plan approved by the Prime Minister, Ngoc noted.

PVTEX, a subsidiary of PetroVietnam with a total investment capital of 325 million USD, started commercial operations in May 2014 with a capacity of 236 tonnes of fibre per day, reaching 48 percent of the designed capacity.

The plant halted operations in September 2015 owing to a huge loss of 1.26 trillion VND (55.3 million USD) and negative equity of 504 billion VND.

It was scheduled to restart in 2016 but failed to do so. Authorities would have considered bankruptcy if the equitisation of the enterprise had been unsuccessful.

PVTEX and APH signed a memorandum of cooperation on producing and trading Dinh Vu polyester fibre in April last year.-VNA