Home / Knowledge / News / Textiles / Pakistan-Japan JV sought for naphtha cracking plant
Pakistan-Japan JV sought for naphtha cracking plant
03
Dec '11
Japan imported US$ 270 million worth of naphtha from Pakistan in 2010. However, this naphtha was not sent directly to Japan as Pakistan lacks naphtha processing or cracking facility.

Naphtha is a by-product of oil refining process and it needs to be further processed at naphtha cracking facilities to turn it into high-octane fuels and chemicals for use in man-made fibre (MMF) industry.

“The product has a lot of demand but unfortunately there is no processing unit in Pakistan. So, the Japanese import it from Pakistan via some other countries – South Korea and/or Singapore, where it is processed,” Dr. M Iqbal Thaheem, Commercial Counselor of Pakistan based in Japan, told fibre2fashion.

Explaining the rationale behind the need for a Pakistan-Japan joint venture, he says, “Under the customs rules, a product has to undergo at least two processes for a change in the name of the country of origin. Since Pakistani naphtha undergoes only one process in South Korea or Singapore, it lands up in Japan as a product of Pakistan. On the other hand, looking from Pakistan's customs point of view, the product goes to Korea or Singapore and not to Japan. So, we have been advising and asking Japanese people to enter into a JV with Pakistani entrepreneurs to set up a processing plant, i.e. cracking plant or cracker, so that the middle country can be removed from the supply chain, which will be beneficial to both Japan and Pakistan.”

Further, citing advantages of such a joint venture, he quips, “Japan will then get the products at a cheaper price and Pakistan will get a good price as well. It will also be a good opportunity to increase Pakistan's naphtha exports beyond US$ 270 million.”

From Pakistan perspective, Dr. Thaheem says, “Pakistan needs to have a naphtha cracking plant of its own to switch from exporting raw cotton and cotton yarn to exporting more of fabrics and garments, and thus make the product value-added.”

“In addition, the textile industry is going high-tech now. Japanese textile tycoons Toyobo and Teijin are developing new products for which most of the raw material comes out from the petroleum products. So, it is important that Pakistan's textile sector should be able to take advantage of the Japanese technology. However, the Board of Investment (BOI) has to actually analyze the feasibility and cost effectiveness of the plant,” he concludes.

Fibre2fashion News Desk - India

Must ReadView All

President Donald Trump; Courtesy: White House

Textiles | On 24th Jan 2017

US sets ball rolling for withdrawal from TPP

President Donald Trump has set the ball rolling for withdrawal of the ...

Textiles | On 24th Jan 2017

Indian cotton consumption estimated at 290 lakh bales: CAI

The domestic consumption of cotton during the crop season 2016-17...

Stefano Gallucci (left), CEO, Santex Rimar Group, and Tamer Hasbay, President, Has Group; Courtesy: Santex Rimar

Textiles | On 24th Jan 2017

Santex Rimar to market all Has products globally

Italy based Santex Rimar Group has signed an agreement with Turkey...

Interviews View All

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search