APLA ’08: Economy delays Brazil PVC expansion

16 November 2008 15:56  [Source: ICIS news]

RIO DE JANEIRO (ICIS news)--Brazilian polyvinyl chloride (PVC) producer Braskem has delayed its plans to expand capacity due to an uncertain demand outlook, a source close to the company said on Sunday.

Braskem had planned to expand its PVC plant in Bahia by 250,000 tonnes/year in 2010, but that has been pushed back to 2011, the source said on the sidelines of  the 28th Latin American Petrochemical Annual Meeting (APLA),

Darkening economic conditions curtailed investment in Brazil’s housing market and infrastructural projects, weakening demand for PVC and other construction materials, the source said.

Those delays could also derail plans to expand chlor-alkali production in Brazil, the source said. Chlorine is a major feedstock of PVC, and its co-product caustic soda is still in very high demand.

“No one knows what to do with the chlorine, and it seems wiser to not expand production until we know how the market will react to what is happening in the economy,” the source said.

PVC producers in Brazil include Braskem and Solvay.

The 28th edition of the conference opens on Sunday and ends on Tuesday.

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By: Greg Holt
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