US chlor-alkali producer PPG to acquire Equa-Chlor

21 March 2011 15:50  [Source: ICIS news]

HOUSTON (ICIS)--US chlor-alkali producer PPG Industries will buy Washington-state based Equa-Chlor's manufacturing operations, including a chlorine plant and tank railcars, PPG said on Monday.

The deal is expected to close during the first half of 2011. Financial details were not disclosed.

“With the acquisition of Equa-Chlor, PPG’s chlor-alkali and derivatives business will gain a strategic foothold in the western United States, in addition to improving our ability to supply key customers throughout the country,” said Michael McGarry, PPG senior vice president of commodity chemicals, in a news release.  

PPG intends to acquire Equa-Chlor’s manufacturing operations in Longview, Washington, the company said. The facility produces 220 tons/day of chlorine.

The acquisition also includes Equa-Chlor’s railcars for PPG’s existing fleet, which would enable PPG to reduce overall transportation costs in the US given Equa-Chlor’s location in the Pacific Northwest.

Equa-Chlor produces chlorine, caustic soda and hydrochloric acid.

PPG manufactures chlor-alkali and derivative products in the US in Louisiana and West Virginia. PPG also has a facility in the city of Beauharnois in Quebec, Canada and operates through a majority-owned subsidiary in Kaohsiung, Taiwan.

PPG’s caustic production in Lake Charles, Louisiana, has a listed capacity of 1.27m tonnes a year.

Its Natrium, West Virginia, facility has a listed caustic soda capacity of 250,000 tonnes.

Other US chlor alkali producers include Dow Chemical, Formosa Plastics, Georgia Gulf, Olin, OxyChem and Shintech.

($1 = €0.70)

Paul Hodges studies key influencers shaping the chemical industry in Chemicals and the Economy
For more on the chlor alkalis, visit ICIS chemical intelligence

By: Ruth Liao
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