Hungary's BorsodChem will not allow PVC plant to close - CEO

04 March 2011 16:11  [Source: ICIS news]

PRAGUE (ICIS)--Hungary's BorsodChem has guaranteed that its 365,000 tonne/year polyvinyl chloride (PVC) plant will not be closed even if the search for a buyer or joint-venture partner for the facility proves fruitless, the company's CEO said on Friday.

The PVC unit would remain an important part of BorsodChem's production chain because it recycled hydrochloric acid, a byproduct of the company's manufacturing of isocyanates in Kazincbarcika, northern Hungary, CEO Wolfgang Buchele said.

"BorsodChem never had, and also today does not have, an intention to close down PVC. BorsodChem does not necessarily have to own PVC by itself. However, PVC is in any case valuable due to the synergy with the isocyanate production," he added.

In June last year, BorsodChem widened its attempt at finding an investment solution for its PVC business by inviting not just potential buyers but possible joint-venture partners to take a look at the plant.

Since February, BorsodChem has been owned by China's Wanhua Industrial Group.

In Poland, PKN Orlen is considering going ahead with a second attempt at selling its subsidiary Anwil, which has a 435,000 tonne/year PVC plant as well as a nitrogen fertilizer business.

Unlike with last year's abandoned divestment to Poland's Zaklady Azotowe Pulawy (ZAP), the two segments might be offered separately, it added.

Analysts said that the central and eastern European PVC market is well supplied.

For more on PVC visit ICIS chemical intelligence

By: Will Conroy
+44 20 8652 3214

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