Surat-based Nakoda Limited, a leading manufacturer of polyester yarn today said that it has begun commercial production in South Korea at a plant acquired through its subsidiary Indo Korean Petrochem Ltd.
The Korean unit has a capacity to manufacture 150 tons per day (tpd) of fully drawn yarn (FDY), 90 tpd of partially oriented yarn (POY) and 60 tpd of polyester chips.
''South Korea is facing a unique situation of surplus of raw materials – i.e. PTA and MEG on one hand, and dependence on import of FDY, POY and Polyester Texturised Yarn (PTY) on the other,'' said Babubhai Jain, chairman and managing director of Nakoda.
''Nakoda plans to cash in on this opportunity by selling its major production in South Korean market, and substitute imports in South Korea. Nakoda will also enjoy the benefit of a very low capital cost project which will give it an edge over its peers in South Korea,'' he added.
Early this year, Nakoda, through its subsidiary Indo Korean Petrochem, had acquired the entire manufacturing facilities located at Kyunghan in South Korea of Kyunghan Industry Company for $40 million.
From being a privately held company trading in yarn in 1984, Nakoda has come a long way to become a manufacturer by going public in 1992 and established its own texturising plant at Silvassa in the Union Territory of Dadra & Nagar Haveli in 1986.