JBF Inds to set up new plant in Emirates

Polyester chips maker JBF Industries has teamed up with Ras Al Khaimah Investment Authority to set up a polyester PET resin packaging chips plant in the Emirate of Ras Al Khaimah, JBF officials said on Tuesday. The cost of the plant would be around $84 million.

The plant will have a production capacity of 600 tonne of SSP chips per day and 300 tonne of polyester film per day, the officials added. The proposed unit, which is also the maiden Indian unit in the Emirate, will cater to the US, European Union and Chinese markets, they said.

"There are no anti-dumping duties into the targeted markets," an official said. According to officials, the company chose the region because of the abundance of raw materials even though the plant and machinery for the unit will be imported from Europe, US and China.

Besides, the project cost in the Emirate is around 20-25 per cent lower compared with other global destinations mainly on account of better logistics, absence of duties as it is a free trade zone, low overheads and no bureaucratic delays, they said.

Meanwhile, JBF's existing production capacity in India is around 120,000 tonne per annum and the company is setting up a new plant for manufacturing polyester chips, the officials said.

The latter, involving an investment of Rs 1.5 billion, will have an output capacity of 216,000 tonne per annum and will be operational by January, they added.