Mumbai based JBF Industries is planning a Rs300 crore expansion focusing developement of its partially-oriented yarn (POY) manufacturing unit capacity.
Rs 130 crore will be invested in raisng the production capacity of POY up from 60,000 tons to 1,50,000 tons by September 2006.
A new plant for producing polyester chips is coming up at Sarigram, in the vicinity of the present one in Silvassa.
B Arya, Chairman, announced that the plant is expected to be operational by March 2006.
The Sarigram plant, pegged at Rs 170 crore, will have a production capacity of 2.16 lakh tons per annum, thereby raising the company's total capacity up to 3.36 lakh tons a year.
Half of the domestic production of polyester chips is taken care of by JBF; yet, even more than half of domestic need is catered to by imports from countries like Indonesia, South Korea and Taiwan.
Polyester chip is a solidified polymer used in the production of polyester filament yarn and polyester staple fibre.
Yarn made of these fibres is used to make suitings, shirtings and sarees, among other things.
JBF will buy purified terephthalic acid (PTA) from Indian Oil Corporation from their new refinery at Panipat, which will be operational by March 2006.
Along with monoethelene glycol, PTA is used to produce polyester chips and POY.
The company needs about 2.5 lakh tons of PTA and 1.5 lakh tons of MEG for its captive utilisation.
marketing@alchempro.com
