Over the past 2 decades, the usage of synthetic fibre has increased significantly and added support to Pakistan's textile industry. Investments in the 80s and early 90s enhanced the size of the domestic market to 138,000 tonnes per annum by 1994. Further expansions in 1996, 1997 and 2002 have escalated the domestic capacity to 635,000 tons per annum - over 25 times its start-up capacity of 1982 and representing over 8.2% of the entire PSF capacity in Asia which includes China, India, Korea, Taiwan, Japan and South Asia.
Amongst these regional markets, China which has access to integrated production facilities and lower cost of doing business, significantly leads the way in both capacity and demand. The enormity of the Chinese polyester market and the perceived rapid growth will ensure its continuance as market leader with respect to the region.
The availability of PSF in Pakistan has enabled the downstream textile industry to move towards value addition by opening newer and more viable markets that were previously difficult to access. Providing stability in the raw material supply to the textile industry, the PSF industry also allows for cotton availability to be leveraged for maximum value realisation. The PSF industry is a major contributor to the economy where it plays a major role in import substitution with savings estimated at US $200 mn per annum.
The current domestic capacity of 635,000 tons of PSF is equivalent to approximately 4 million cotton bales. In seasons producing a cotton crop of 10 to 12 million bales, the domestic capacity in PSF brings huge advantages to the domestic textile industry in making a viable substitute for cotton, allowing for a maximum utilisation of textile resources. Expansion of the PSF industry to meet growing demand from the textile sector will be premised on continuing government support and consistency of policy.
ICI Pakistan Limited was a pioneer in the manufacture of Polyester Staple Fibre. Starting from a base of 12,000 tonnes per annum it has grown to a capacity of 112,000 tonnes per annum. The Company has recently announced a project to modernise and upgrade its Polyester Asset located at Sheikhupura at a total cost of Rs 1.0 bn which will increase the capacity of its asset and will enhance operational efficiencies.
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