The local Crescent Group is to establish the first acrylic fibre plant in Pakistan. The plant will be built in Baluchistan by Crescent Industrial Chemicals, a joint venture between Crescent, Mansanto Company of the US and Itochu Corporation of Japan.

The International Finance Corporation (IFC) signed an investment agreement on 19 May to provide a financing package of $41 million for the project. The IFC finance will comprise a loan of $15 million for its own account, a syndicated loan of $21 million and equity investment of up to $5 million. The total cost of the project is $106.4 million.

The plant will broaden the range of textile products manufactured locally and will reduce reliance on domestic cotton crops.

The textile industry currently accounts for about 60 per cent of exports. Germany’s Zimmer is the main contractor for the plant and the local Global Securities is the financial adviser.