09 July 2001 00:00 [Source: ACN]
Dalian Shide has obtained approval from the Chinese government to build a 500- 600 000 tonne/year PVC plant in Dalian, Liaoning, China, ACN was told. Sabic will be an investor in the project.
LG Chem and Shin-Etsu Chemical are also involved in the project. They are bidding to provide the technology for the PVC project, but not as joint-venture partners, a source close to the project said.
The source also told ACN that Dalian Shide is hoping to back-integrate its PVC project to a vinyl chloride monomer (VCM) facility, after the PVC plant starts operations, the source added.
This would be the first venture by Dalian Shide, a PVC profile maker, into PVC production. It has been importing PVC since its inception in the mid-1980s.
Dalian Shide will hold a majority stake in the joint-venture project, but it is not known how big this stake will be.
The source said Dalian Shide and Sabic have obtained approval from the State Development Planning Commission and are awaiting final approval and a business licence from the Ministry of Foreign Trade and Economic Co-operation (Moftec). Moftec is expected to grant the licence in a few months.
Construction can start immediately after the licence is obtained. The plant is expected to come onstream in about three years.
Dalian Shide has invited Sabic to invest in the project because the Chinese major wants to obtain competitively-priced ethylene dichloride supplies for its VCM-PVC facility, the source said.
Other PVC plants being proposed in China include a US$119.5m project by Formosa Chemicals & Fibre Corp in either Jiangsu or Zhejiang province (ACN 4 June, p36), and a 70 000 tonne/year expansion by Shanghai Chlor-Alkali Chemical.
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