China's SCAC to form PVC joint venture in Ningxia
04 June 2003 02:51 [Source: ICIS news]
SINGAPORE (CNI)--Shanghai Chlor-Alkali Chemical (SCAC) plans to form a joint venture with two Chinese companies to build a 100-120 000 tonne/year polyvinyl chloride (PVC) plant in Ningchuan, Ningxia in western China, according to a company source.
The two local partners are Ningxia Ninghe National Chemicals Group Co, a producer of calcium carbide, which will hold a 40% stake, and an unnamed power company, which will hold 30%. SCAC will also own a 30% stake. The new company, which has yet to be formed, is to be called Ningxia West PVC.
The project will use the acetylene-based route. Acetylene, obtained by mixing calcium carbide with water, is used to react with hydrogen chloride to produce vinyl chloride monomer (VCM), which is then used to make PVC.
The investment is estimated at slightly above Rmb900m ($108.7m/Euro92.7m). The project will produce a corresponding amount of caustic soda, chlorine and VCM.
The source said Ningxia was chosen because of its coal reserves and competitive electricity rates, which are one-third of the price charged in Shanghai.
SCAC expects to use mainly local technologies for the project, which is slated to start up in H2 2005.
It was not immediately clear how the project would affect talks between SCAC and Tosoh for a PVC project in China. SCAC has been in talks with Tosoh for a PVC plant outside Shanghai that is set to start up after 2005.
By: Clara Tan
+65 6780 4359
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