30 August 1999 00:00 [Source: ACN]
Hanwha Chemical may bring onstream a new 100 000 tonne/year PVC plant 1-3 years after its ethylene dichloride (EDC) and vinyl chloride monomer (VCM) expansions start commercial production.
The Yeochon-based producer is scheduled to start up 150 000 tonne/year expansions of EDC and VCM (ACN 9 Aug, p19) in Q1 2000 and raise respective feedstock capacities to 570 000 tonne/year and 510 000 tonne/year.
Hanwha was forced to suspend work on the EDC and VCM expansions because of the economic crisis (ACN 17 May, p31).
Hanwha at present has to import 100 000 tonne/year of VCM. However, once its new VCM expansion is onstream, it will have a surplus of up to 50 000 tonne/year based on nameplate capacity.
Hanwha initially intends to run its new VCM plant at an operating rate sufficient to prevent a surplus. However, it is evaluating how it can make full use of its new VCM capacity in the long term.
One option is to add 100 000 tonne/year of new PVC capacity. This would raise Hanwha's PVC output to 535 000 tonne/year by 2001-02. Hanwha could instead acquire Hyundai Petrochemical's 200 000 tonne/ year of PVC. The Ulsan-based producer has identified PVC as non-core to its proposed merger with Samsung General Chemicals.
A third option for Hanwha is to export its surplus VCM or to sell to domestic markets.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.