Hanwha Chem to build $384m China PVC plant

14 January 2008 08:05  [Source: ICIS news]

SINGAPORE (ICIS news)--Hanwha Chemical, a South Korean chemicals maker, plans to build a won (W) 360bn ($384.2m) polyvinyl chloride plant (PVC) in eastern China for start-up at the end of 2010, a spokesman from its parent company said on Monday.

The project in Ningbo, Zhejiang province, would produce 300,000 tonnes/year of PVC to feed the city’s demand, he said, adding that the company completed its feasibility study and was waiting for government approval.

Feedstock units producing 500,000 tonnes of ethylene dichloride (EDC) and 300,000 tonnes of vinyl chloride monomer (VCM) would also be built at the Daxie economic development zone, the spokesman said.

Ethylene feedstock will be exported from its joint venture Yeochun NCC (YNCC) in South Korea while Yantai Wanhua Polyurethanes, a methyl di-p-phenylene isocyanate (MDI) maker, will provide chlorine, he added.

Although China’s PVC output, mainly in northern and western areas, has exceeded demand, logistics problems made it difficult for products to be transported to the east, the spokesman said.

It was also easier to get chlorine in China compared with the Middle East, where the company was looking at a second project for the production of polyethylene (PE), another key product, he added.

Hanwha was still in talks with its potential partner in Saudi Arabia, which has access to competitive gas feedstocks, the spokesman said.

($1=W937.05)


By: Florence Tan
+65 6780 4359



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