With total investment of $50 million, the plant will produce 4,000 tons of yarns annually.
Half of the amount of yarn will export and the rest for textile production in Vietnam.
The plant is a joint venture project between Germany’s Südwolle Group and Lien Phuong Textiles Industry Company, based in HCM City.
It is expected to be operated in 2019 and to generate revenue of $100 million a year.
Once put into operation, the plant will use imported raw wool to carry out fiber production and then the finished wool yarn from the factory will be shipped to textile companies using sheep wool.
A representative of Lien Phuong Company said that because of Ninh Thuan fleece’s low quality, it has no choice but buy fleece from other nations for production; accordingly it plans to build fleece material plant in the central province of Ninh Thuan and other provinces.
Visitors to Da Lat town will have a chance to watch the whole process of producing yarns from natural wool.