Pakistan textile industry facing severe energy crisis

(yarnsandfibers) -- Pakistan Textile Exporters Association (PTEA) has demanded refund of deemed duty on imported industrial inputs, allocation of 30 billion rupees for local taxes drawback regime and relief of 0.5 percent on withholding tax of exporters. In a communication to parliamentarians, Rana Arif Tauseef chairman PTEA said that exporters' demands do not involve any burden on the exchequer but is only reallocation of priorities to facilitate the export sector and to strengthen the national economy.

Drawing attention towards the importance and role of textile industry and exports in national economy, he said that textile industry was in grip of severe gas and electricity load shedding and is confronted with liquidity crunch and tough international competition. Textile exports have dipped by 1.33 billion dollars over the last seven months and are estimated to further go down by 2.5 billion dollars by end of current fiscal, he said and added that thousands of mills have been closed rendering millions of workers jobless. Resultantly industry is being shifted to other countries and we are losing our traditional export markets. This negative trend could be stopped with only some readjustments and reallocation of funds in current budget, he claimed.

Continuing, Rana Arif said that emergency measures on solid and practical basis are required to resolve the energy (gas and electricity) crisis in order to keep the wheel of industry running and to strengthen the economy of the country. He apprehended that gas crisis would turn severe within next three months and will further deepen the crisis.

MRC

(yarnsandfibers) -- The Head of the Republic of Dagestan Magomedsalam Magomedov met with the Chairman of the Board of Directors of the holding "Nergiz" Javid Caglar.

Turkish side was represented by the manager general of the company "Nergiz" Mustafa Caglar, the project manager of the company Mutahhari Kotevoglu, the director general of the company “Business Solutions and Development Company Limited” Ismail Tayfun Ozdemir and others.

The Turkish delegation arrived in Dagestan to take part in the II Dagestan Economic Forum. The company "Nergiz" is specializing in the manufacture of threads, fabrics and other textile products. Turkish businessmen also acted with an intention to build a textile factory in the republic. According to the preliminary estimates the first phase of the project will take over 500 million dollars of investments. The construction companies will create approximately 5000 new jobs.

MRC

(yarnsandfibers) -- Russian Sibur is holding negotiations with Gazprom Neft, the oil arm of Gazprom, about setting up a joint venture for the production of terephthalic acid, says Sibur’s Sergey Merzlyakov.

Production is expected to be established at the Omsk oil refinery and capacity could reach up to 350,000 tonnes per year.

Merzlyakov says there is a current lack of monoethylene glycol production in Russia. Monoethylene glycol is used with terephthalic acid to manufacture PET.

Production from the JV will be supplied mainly to Russian PET producers, with some being exported to eastern European countries.
MRC

(styron) -- Styron Europe GmbH and its affiliate companies in Europe announced price increases for all polystyrene grades. Effective immediately, or as existing contract terms allow, the June contract and spot prices for the products listed below, will increase Styron general purpose polystyrene grades (GPPS) by 30 Euro per metric ton, Styron and Styron-Tech high impact polystyrene grades (HIPS) by 30 Euro per metric ton.

Styron is a leading global materials company and manufacturer of plastics, latex and rubber, dedicated to collaborating with customers to deliver innovative and sustainable solutions.

Styron's technology solutions are used by customers in industries such as home appliances, automotive, building and construction, carpet, commercial transportation, consumer electronics, consumer goods, electrical and lighting, medical, packaging, paper & paperboard, rubber goods and tires.

Styron had approximately USD 6 billion in revenue in 2011, with 20 manufacturing sites around the world, and 2100 employees.

MRC