TPC plans Vietnam expansion with $424m PVC unit

17 May 2007 13:53  [Source: ICIS news]

BANGKOK (ICIS news)--The largest polyvinyl chloride (PVC) maker in the region Thai Plastic and Chemicals (TPC) plans to link up with Vietnam Chemical Corporation (Vinachem) to build a $424m plant in the country with combined capacity of 895,000 tonnes/year, a company spokesman said on Thursday.

 

The new Vietnam-based facility would produce 345,000 tonnes/year of vinyl chloride monomer (VCM), 300,000 tonnes/year of ethylene dichloride (EDC) and 250,000 tonnes/year of chlor alkali, he told ICIS news.

 

The move is the latest in TPC's plans to expand its operations in Vietnam. Last year, the company said it would buy a 43% stake in Phu My Plastic and Chemicals (PMPC) from PetroVietnam Oil and Gas Co but the deal was never completed.

 

PMPC, 50% owned by Petroleum Nasinal Phd (Petronas), produces 100,000 tonnes of PVC resin per year.

 

"We cannot conclude the deal yet," the spokesman said. "We are still in negotiations with Petronas."

 

TPC wanted to boost production at the plant to 300,000 tonnes/year, the spokesperson said. To do so, the company would transfer some machinery to Vietnam, he added.

 

TPC announced last month its first-quarter net profits dropped 62% from the same period last year to Bt257m ($7.7m), due to the higher costs of raw materials ethylene and ethylene dichloride.

 

TPC is 65%-owned by Siam Cement Group, Thailand's largest industrial conglomerate.

 

($1 = Bt33.26)

 

 

By: Daniel Ten Kate
+65 6780 4359

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