Dalat Worsted Spinning (DWS), under German yarn maker Sudwolle, has received approval to raise its investment in a sheep wool yarn spinning factory in the Central Highlands province of Lam Dong to $51.6 million.
In the first investment certificate, DWS, a joint venture between Sudwolle and Ho Chi Minh City-based Lien Phuong Textiles Industry Co., invested $30 million in the business.
In a decision last week, Lam Dong authorities said that during the first phase that ended in January 2023, the investor poured $35.61 million into the project.
In the expansion phase running 24 months from the date of land delivery, the investor is set to add $1 million in the first year and $1 million more in the second year from its equity, and raise funding of $14 million from other sources in the first 18 months of the project.
The new investment will be used to build a second factory in Phat Chi Industrial Park, the province’s Da Lat town, with an annual capacity of 2,000 tons of yarn. Combined with the first factory’s output of 3,000 tons a year, the project’s total capacity is set to reach 5,000 tons annually.
In May 2023, Sudwolle inaugurated its first sheep wool yarn spinning factory in the Central Highlands province of Lam Dong. The plant has a designed capacity of 3,000 tons of yarn a year for the Vietnamese and overseas markets.
The plant features a rooftop solar power system of 2,040 kWp, which can meet 20% of the factory’s demand and help reduce 2,100 tons of emissions a year, according to Vu Phong Energy Group, which installed the system.