FCFC to start nylon chip, textile yarn lines in Vietnam by end ’10

09 June 2010 07:21  [Source: ICIS news]

SINGAPORE (ICIS news)--Taiwan’s Formosa Chemicals & Fibre Corporation’s (FCFC) new nylon chips and textile yarn lines in Dongnai province, Vietnam, are expected to come on-stream at the end of the year, a source close to the company said on Wednesday.

“Labour costs in Vietnam are lower [compared to China]. This is one of the reasons [why] we are setting up a nylon and yarn facility there,” he said.

The company’s nylon chips and textile yarn lines would have a capacity of 5,000 tonnes/month and 4,000 tonnes/month, respectively, according to the source.

“We can also be in a more competitive position [in the future],” the source said, adding that there was no need to pay anti-dumping duties (ADD) when exporting from Vietnam to China.

Currently, most major Taiwan-based nylon chips producers must pay an ADD rate of 4.0–4.3% when they export to China, based on the ruling made by the Chinese Ministry of Commerce.

Nylon is widely used in the manufacture of hosiery, knitted garments, threads, ropes, filaments, nets and tire cords.

Other Taiwan-based nylon makers include Li Peng Enterprise Co, Zig Sheng Industrial Co, Hualon Corporation and China Petrochemical Development Corporation (CPDC).

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By: Junie Lin

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