SCAC eyes less PVC, more chloralkali

15 July 2002 00:00  [Source: ACN]

Shanghai Chlor-Alkali Chemical (SCAC) is studying the feasibility of raising the capacity of its chloralkali project in Caojing, Shanghai, China, to 400 000 tonne/year from 200 000 tonne/year. It is also evaluating scaling down its PVC project at the same site to 200 000 tonne/year from 300 000 tonne/year.

However, there are no plans to change the capacities of its 400 000 tonne/year ethylene dichloride (EDC) and 300 000 tonne/year vinyl chloride monomer (VCM) projects.

A decision on the capacities of the chloralkali and PVC projects will be taken next month, said a company source. All the projects are planned for start up in 2004.

The source said SCAC is studying a chloralkali unit of a higher capacity because Bayer, which has lined up projects for polycarbonate (PC), bisphenol A and isocyanates at Caojing, is interested in entering into a long-term purchase contract. SCAC has a 10% stake in the PC project.

SCAC is considering scaling down the PVC project as it is interested in selling VCM and EDC in the domestic market.

Meanwhile, talks between SCAC and Tosoh for the latter to take a stake in the Caojing PVCproject have ground to a halt. The two companies had started preliminary talks last year for the Caojing project as well as a 70000 tonne/year PVC project in either northern or southern China.

The source said an ongoing Chinese investigation of Japanese PVC exports for alleged dumping has prompted Tosoh to go slow on any PVC investment in China. The probe, which also covers PVC exports by South Korea, Taiwan, Russia and the US, was launched at end-March 2002. The investigation is expected to conclude by March 2003.

A Tosoh source told ACN that the company is continuing its study on a 100-150 000 tonne/year PVC project in China. The study is likely to be completed in 1-2 years.

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