Texhong Group stitches up fibre plant factory deal

April 16, 2012 | 14:01

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One of the globe’s biggest cotton suppliers has got the thumbs up to build its second fibre manufacturing plant in Vietnam.

China’s Texhong Group last week got the nod to build a $300 million fibre plant in Quang Ninh province’s Hai Yen Economic Zone. It will have a production capacity of 200,000 spindles per year.
Some 80 per cent of its output will be exported to China and the European Union and cotton used in the plant will be imported.

Nguyen Van Thanh, vice chairman of Quang Ninh Provincial People’s Committee, said it only took a lightening quick 50 days for the investor to reveal its ideas to receiving a licence. Thanh told VIR that Texhong Group had planned to start construction at the new facility in the third quarter of this year.

Texhong Vietnam Textile JSC-1, a branch of Texhong Group, is operating a textile plant with a capacity of 210,000 spindles per year in southern Dong Nai province’s Nhon Trach Industrial Zone.

Garment companies in Vietnam heavily rely on fabric imports as the domestic textile industry cannot supply high-quality fabric. Currently, Vietnam imports raw materials used in garment manufacturing, including 75 per cent of fabric, 90 per cent of cotton and all polyester filament and fibre requirements.
The demand for fibre was high and local firms had to import 150,000 tonnes each year, according to Vietnam National Textile Garment Group.

Texhong Textile Group specialises in the production and trading of high value-added cotton fashion fabrics.

By Phuong Thu

vir.com.vn

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