10 April 2008 10:52 [Source: ICIS news]
TOKYO (ICIS news)--V-Tech Corp, Mitsubishi Chemical’s (MCC) Tokyo-based subsidiary, plans to reduce production and stop export of polyvinyl chloride (PVC) after it closed its PVC unit in Mizushima, ?xml:namespace>
The company also planned to upgrade and increase capacity at its PVC unit in
Most of the PVC and vinyl chloride monomer (VCM) produced at the Mizushima unit was primarily for exports, the chemicals firm added.
V-Tech had been exporting PVC to
However, a steady rise in the cost of production and freight rates as well as a strengthening of the Japanese yen against the dollar led to a decline in the profitability of PVC exports, it added.
Production costs were expected to rise further as the price of industrial salt, which had been stable until recently, was forecast to skyrocket after April, and rising naphtha and crude oil prices were also exerting pressure on the prices, the company said.
V-Tech also planned to make adjustments to the VCM unit and the electrolysis plant at Mizushima after it stopped production at the PVC unit, the company said.
V-Tech is a joint venture between MCC and Japanese chemical producer Toagosei, in which MCC holds an 85.1% share.
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