21 January 2002 07:13 [Source: ICIS news]
SINGAPORE (CNI)—Japan’s Tosoh Corp may build by H2 2004 a 100 000 tonne/year polyvinyl chloride (PVC) plant near Shanghai, China, at an estimated Yen5bn ($37m/Euro42m), a source close to the company told CNI on Monday.
The company expects to make a final decision by Q2 this year on the project. It is waiting for the conclusion of negotiations with prospective local partners. Tosoh is likely to take a majority share in the project which could involve one or more local partners.
Tosoh had earlier said that it would build a 70 000 tonne/year PVC plant in the eastern coastal region of China.
The targeted startup date is H2 2004, the source added.
China’s demand for PVC resin has already reached critical mass, and the growth potential is tremendous, an analyst told CNI. In 2000, Japan exported 400 000 tonne of PVC to China, he added.
Tosoh’s subsidiary Taiyo Vinyl Corp exported approximately 200 000 tonne/year of PVC resins in 2001, the source said.
With South Korea’s LG Chem already having a PVC production facility in China and Taiwan’s Formosa Plastics Corp considering a similar project there, Japanese PVC producers must look to do the same if they’re to remain competitive, the analyst said.
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections