20 June 2001 02:45 [Source: ICIS news]
SINGAPORE (CNI)—Japan’s diversified chemicals major Tosoh has embarked on a feasibility study to establish a 70 000 tonne/year polyvinyl chloride (PVC) plant in China’s coastal region, a source close to the company told CNI on Wednesday. It may also eventually back-integrate the PVC facility all the way down the chloralkali chain.
Tosoh intends to shape the project in form of a joint venture whilst maintaining a majority share, the source said. A formal decision on the concrete make up of the project is expected within the year, he added.
If the decision to build is taken, construction is likely to start in H2 2002. The expected start up date is H2 2004.
"China’s demand for PVC resin has already reached critical mass, and the growth potential is tremendous. In 2000, Japan exported 400 000 tonne of PVC to China," an industry analyst said.
With South Korea’s LG Chem already having a PVC production facility in China and Taiwan’s Formosa Plastic Corp (FPC) considering a similar project there, Japanese PVC producers must look to do the same if they’re to remain competitive, the analyst added.
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