Solvay monomers move into China
4 Nov 2004
Solvay has signed a license agreement to supply its proprietary vinyl chloride monomer manufacturing technology to the China-based firm of Singpu Chemical Industries.
A new plant, constructed in Taixing in Jiangsu Province, will be set up to manufacture the product. It is scheduled to be operational in the first half of 2006, with an annual production capacity of 200 kilotons.
In addition to the manufacturing technology, Solvay will also provide Singpu Chemical with engineering services, technical assistance as well as equipment.
The Chinese market for vinyl polymers has grown by an average of 15% over the past five years and is expected to reach a total volume of some 7 million tons of PVC in 2004 - which accounts for almost one quarter of the world market. This spectacular growth has been met, for the most part, by increased imports. As demand is set to continue rising, China is expected to curb its current deficit through a significant number of capacity expansion plans in its domestic vinyl production chain.
Singpu Chemical Industries - a 100% subsidiary of Singapore-based Singpu Chemicals - is a major chemical producer in Jiangsu province, the People's Republic of China (PRC).
The financial terms of the agreement were not disclosed.
