China's Huayi to start up Inner Mongolia PVC JV in 2007

24 February 2005 02:45  [Source: ICIS news]

SHANGHAI (CNI)--China's Shanghai Huayi Group and its local partner are expected to bring onstream their calcium carbide-based 400 000 tonne/year polyvinyl chloride (PVC) unit and a chlor-alkali facility in Erdos, Inner Mongolia, in the middle of 2007, a source close to the project told CNI on Thursday.

 

CNI's sister publication Asian Chemical News (ACN) was earlier told by the local partner, Elion Resources, that the project would start up in 2006. Huayi and Elion have formed a 48:52 joint-venture company called Yili Chemical for the project.

 

However, the source said that the 2006 timeframe was not achievable as the partners were still seeking quotes from contractors.

 

CNI understands that some staff from Shanghai Chlor-Alkali & Chemical (SCAC), which is partly owned by Huayi, will manage the project because of their company's experience with PVC production. 

 

In addition to 400 000 tonne/year of PVC, the project will also produce 360 000 tonne/year of caustic soda. The project has been approved by the Chinese government.

 

The source added that the project also included the construction of a power plant. As a result, the plant will not be affected by potential electricity price hikes in Inner Mongolia.

 

The Chinese government raised electricity prices in Sichuan and Hunan provinces earlier this month, in a move to link power prices to rising coal costs. The hikes are expected to be implemented in other provinces as well at a later date.

By: Clara Tan
+65 6780 4359

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.

Printer Friendly