Date:15/09/2005 URL: http://www.thehindubusinessline.com/2005/09/15/stories/2005091502450200.htm

Back JBF in pact to set up polyester unit in UAE

Our Bureau

Mumbai , Sept. 14

JBF Industries has tied up with the Ras Al Khaimah Investment Authority to set up a polyester resin packaging (PET) and polyester films manufacturing facility in Ras Al Khaimah, the UAE.

The plant will have a capacity of 900 tonnes per day — polymerisation with a production of 600 tonnes a day of solid state polymerisation (SSP) chips and 300 tonnes of polyester film. The vertically integrated plant is targeted at the markets of the US, the European Union and China. It will manufacture polyester films and SSP chips using mono ethylene glycol (MEG) and purified terephathalic acid (PTA), both of which are easily available in the region.

Mr B. Arya, Chairman, JBF, said, "Our current capacities and expansion will address the domestic need. However, given that our company has the expertise and experience in manufacturing POY chips economically, the international markets offer a growth potential. "A free trade zone in UAE adds to that value significantly. The project costs for setting up a factory in Ras Al Khaimah has been 20-25 per cent less compared to other global destinations on account of better logistics, no incidence of duties, low overheads and low costs incurred in bureaucratic delays." In addition, there will not be anti-dumping duties in its targeted markets.