Dalat Worsted Spinning Limited Company marked a significant milestone on May 25, 2023, with the grand opening of the Dalat Worsted Spinning Factory (DWS). This groundbreaking facility represents Vietnam’s pioneering worsted yarn spinning mill, distinguished by its integration of modern machinery and a substantial 2.04 MWp solar power system for clean energy production. This initiative not only enhances the nation’s textile industry capabilities but also underscores a profound commitment to sustainable development and reducing the carbon footprint within manufacturing operations. The DWS factory sets a new standard for environmentally conscious industrial practices in Vietnam.
The Dalat Worsted Spinning Factory (DWS), operated by Dalat Worsted Spinning Limited Company, is strategically located within the Phat Chi industrial complex, Tram Hanh Commune, Da Lat City, Lam Dong Province. Spanning an impressive 61,000 square meters, this facility is the newest addition to the Südwolle Group, a globally recognized, family-owned enterprise and leading manufacturer of high-quality wool yarn. Headquartered in Nuremberg, Germany, Südwolle Group boasts a workforce exceeding 3,200 employees worldwide, bringing extensive expertise and authority to this Vietnamese venture.
Opening Ceremony of Dalat Worsted Spinning Factory – DWS
With a total investment nearing $50 million, the Dalat Worsted Spinning facility is designed for an annual production capacity of approximately 4,000 tons of premium wool yarn. A significant 90% of this finished worsted yarn is destined for export to major textile companies across the globe, while the remaining 10% supports the growing Vietnamese garments industry. Central to DWS’s sustainable manufacturing is a 2.04 MWp solar power system installed on the factory roof. This advanced industrial solar power solution was developed under a Power Purchase Agreement (PPA) model, with ecoligo serving as the project investor. Vu Phong Energy Group provided comprehensive General Contractor (EPC) services and ongoing Operation and Maintenance (O&M), demonstrating their deep experience in large-scale renewable energy projects.
Mr. Tri, Nguyen Quang – CEO of Vu Phong Energy Group, Mr. Alessandro Di Palma – General Director of Dalat Worsted Spinning (DWS) and Mr. Thuong, Duong Van – Country Director of ecoligo (from left to right)
The DWS factory’s adoption of a PPA solar system underscores its commitment to clean energy production without requiring any upfront capital investment. This 2.04 MWp system efficiently supplies approximately 20% of the factory’s electricity needs and is projected to reduce CO2 emissions by over 2,100 tons annually. This environmental benefit is comparable to the carbon sequestration achieved by planting 34,700 trees over a decade, significantly contributing to global carbon footprint reduction. DWS’s dedication to renewable energy and sustainable development positions it as a responsible leader within the global textile industry supply chain. Beyond greenhouse gas emissions reduction, this on-site power generation capability also alleviates strain on the regional distribution grid, thereby enhancing the stability of the local electricity system and supporting the broader goal of greening the textile industry.
The DWS’s solar power system uses 3,456 Canadian solar panels and 16 SMA Sunny Tripower CORE 2 inverters with a capacity of 110kW
Mr. Tri, Nguyen Quang, CEO of Vu Phong Energy Group, remarked on the project’s success: “The DWS solar power project is one of the notable new initiatives successfully developed and transferred by Vu Phong Energy Group in partnership with the investment fund ecoligo. The system has consistently demonstrated stable and highly efficient operation, reliably delivering clean energy to the DWS factory for its environmentally friendly product manufacturing.” Vu Phong Energy Group is dedicated to collaborating with investment funds and businesses like Dalat Worsted Spinning to implement greener solutions. This commitment aligns with national and international efforts to reduce greenhouse gas emissions and achieve net-zero emissions targets by mid-century, as reaffirmed at the COP26 conference.
Mr. Phong, Pham Nam – Chairman of the Vu Phong Energy Group’s BODs (right) and Mr. Tri, Nguyen Quang – CEO of Vu Phong Energy Group – attended the Opening Ceremony of DWS Factory
The DWS factory’s solar power project, a result of robust cooperation between all involved parties, significantly contributes to the realization of the United Nations Sustainable Development Goals. Notably, it supports Goal 7 (Affordable and clean energy), Goal 8 (Decent work and economic growth), Goal 13 (Climate action), and Goal 17 (Partnerships for the Goals), showcasing a holistic approach to sustainable development.
Further details and additional imagery of the DWS solar power project are available at: https://vuphong.com/project-detail/2040-kwp-blt-dws-lam-dong/
The Power Purchase Agreement (PPA) Model Explained
The Power Purchase Agreement (PPA) model is a flexible cooperation framework pioneered by Vu Phong Energy Group, involving investment partners to facilitate the development of rooftop solar power systems at commercial and industrial establishments, particularly factories across Vietnam. This innovative model allows businesses to leverage their unused factory roofs for clean energy generation without any upfront investment, essentially embracing a zero-capex solar solution.
Under this PPA framework, Vu Phong Energy Group and its investment partners finance and install high-quality solar power systems on enterprise rooftops. They then sell the generated electricity or lease the system for a predefined period at a competitive rate. This ensures businesses utilize clean energy for their production and operations at a price consistently lower than prevailing grid electricity tariffs. With a long-term contract, companies can proactively manage their energy costs, mitigating risks associated with future electricity price hikes. Upon the contract’s conclusion, the solar power system is transferred to the business free of charge (0 VND), backed by a performance commitment of over 80-90%, depending on specific conditions.
Businesses interested in exploring clean energy solutions and the benefits of the PPA model are encouraged to contact our Call Center via 1800 7171 or +84 9 1800 7171, or send an email to hello@vuphong.com for comprehensive information.
Vu Phong Energy Group
