India’s Nakoda to double polymerisation capacity at Surat by 2015

11 April 2012 08:35  [Source: ICIS news]

KOLKATA (ICIS)--India’s Nakoda will double the polymerisation capacity at its polyethylene terephthalate (PET) and polyester yarn plants at Surat in Gujaratto, west India, to 280,000 tonnes/year by 2015, its chairman and managing director said on Wednesday.

The company will invest $400m (€304m) in the capacity expansion, B G Jain said.

“The completion of the project will enable Nakoda to supply the entire range of polyester yarn to the domestic and international markets,” Jain said.

Currently, Nakoda has three plants at the site which can produce 50,000 tonnes/year of PET, 30,000 tonnes/year of partially oriented yarn (POY) and 60,000 tonnes/year of fully drawn yarn (FDY) respectively. The capacity of each unit will be doubled.

The expansion will help Nakoda work with its subsidiary Indo Korean Petrochem, which acquired polyester fibre manufacturer Kyunghan Industry in South Korea for $40m in 2010.

South Korea offers considerable opportunities for polyester industries since the country has a surplus of raw materials in terms of PET and monoethylene glycol [MEG], but is heavily dependent on imports of POY to meet the rising demand from the textile industry,” Jain said.

With the expansion, Nakoda will not have to purchase feedstock polyester chips for its Surat plants and instead manufacture POY and FDY using purified terephthalic acid (PTA) and MEG from the Kyunghan plant, which will reduce the company’s production costs.

($1 = €0.76)

Author: Ajoy Das

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