Petrovietnam unanimously supports VNPOLY to effectively resume operation of the entire factory

Units within Petrovietnam unanimously continue to support and facilitate employment for VNPOLY to overcome difficulties and resume operation of the entire factory effectively and sustainably.

General Director of Vietnam Oil and Gas Group (Petrovietnam) Le Ngoc Son, along with the group's departments and leaders of PetroVietnam Chemicals and Fertilizer Corporation (PVFCCo) recently worked with Vietnam Petrochemical and Fiber Joint Stock Company (VNPOLY) in Dinh Vu, Hai Phong.

Petrovietnam unanimously supports VNPOLY to effectively resume the entire factory.

According to the report of Mr. Tran Huy Thu, General Director of VNPOLY, since 2018, VNPOLY has restored the production of DTY yarn workshop with partners to produce according to orders, continuously improving quality, diversifying products according to the requirements of the international market, and being highly appreciated by domestic and foreign partners and customers. In particular, VNPOLY has had revenue to cover costs, maintaining a team of skilled engineers and workers. By 2023, VNPOLY will officially be profitable.

In the first 8 months of 2024 alone, VNPOLY operated 12-18 DTY yarn production lines, reaching 5,120 tons of various types of yarn, reaching 92% of the plan. Revenue reached 142.2 billion VND. The average quality of recycled yarn products reached 90% of AA type, higher than the level agreed in the contract with partners (88%); virgin yarn reached 91%, AA quality products. Production and business results showed that revenue was enough to cover variable costs in accordance with the Group's policy.

In the preparation for the operation of the remaining part of the Factory, VNPOLY has found a partner to prepare to re-operate the POY yarn production workshop from PET chip beads, and has signed a contract with the partner to prepare a feasibility study report on the cooperation project to process POY yarn to finished DTY yarn from PET chip raw materials on line 51", expected to be submitted to the Group and shareholders for consideration and approval in October 2024.

Regarding PSF fiber production, VNPOLY has discussed with a number of partners to realize the work related to fiber production cooperation and VNPOLY restructuring. The two sides have made a master plan for maintenance and repair support and capital needs for PSF fiber production. It is expected to be completed in the fourth quarter of 2024.

At the meeting, VNPOLY leaders also made recommendations asking the Group and major shareholders to support the early recovery of production at the entire factory.

In September 2024, VNPOLY and other units in the industry will conduct an overall assessment and re-inspection of the equipment before purchasing replacement materials and performing on-site maintenance at the Factory.

According to Petrovietnam General Director Le Ngoc Son, from a struggling unit, VNPOLY has made efforts to gradually restore part of the production and business of Dinh Vu Polyester Fiber Factory. In particular, VNPOLY has done many important things such as continuously maintaining and preserving the equipment system according to standards, finding partners with enough potential and experience to restore each production workshop, handling outstanding financial issues, etc.

Petrovietnam General Director Le Ngoc Son emphasized that VNPOLY is still facing many difficulties and challenges such as being heavily dependent on partners, limited financial solutions for production, lack of high-quality human resources, experience, etc.

Therefore, the professional departments and member units in the Group need to thoroughly grasp the spirit of "One team - One goal", unanimously continue to support and facilitate jobs for VNPOLY so that the unit can gradually overcome difficulties and operate the entire factory effectively and sustainably.

In the last 4 months of 2024, General Director Le Ngoc Son requested VNPOLY to focus on perfecting optimal production solutions, increasing POY fiber capacity; finding more partners and customers, expanding the market, flexibly increasing revenue and profit; urgently discussing with PSF fiber production partners, developing a detailed and feasible production recovery plan; Recovering POY workshop production in 2024; coordinating and closely following ministries and branches to handle legal procedures for production preparation.

With the Group's professional departments, the General Director directs VNPOLY to handle key issues, flexibly develop production and business plans according to the sensitivity of the fiber market; provide maximum support to VNPOLY in training human resources as well as handling outstanding financial issues.

Source: https://baodautu.vn/petrovietnam-dong-long-ho-tro-vnpoly-van-hanh-tro-lai-toan-bo-nha-may-hieu-qua-d223497.html