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Establishment of New Chlorinated Polyvinyl Chloride (CPVC) Compound Production and Sales Company Decided for Thailand
Nov 12, 2013

SEKISUI CHEMICAL CO., LTD

SEKISUI CHEMICAL CO., LTD. (President: Naofumi Negishi, hereinafter called "Sekisui Chemical") has decided to establish a new chlorinated polyvinyl chloride (CPVC) compound*1 production and sales company in Thailand.

Previously, we have decided to establish a CPVC resin manufacturing joint venture company with the Lubrizol Corporation (hereinafter called "Lubrizol") in Thailand (Press release February 21, 2013). A compound production plant will be established within the same industrial park as the CPVC resin plant to take over part of the CPVC resin manufactured at the resin plant, and to manufacture CPVC compounds.

Sekisui Chemical aims to expand our share in the region by acquiring expanded demand throughout South Asia, ASEAN, and the Middle East through the establishment of this new CPVC resin and compound production base in Thailand. 

*1:CPVC compound is a substance made of CPVC mixed with additives necessary for the molding process of pipes etc.


 

1.CPVC Features and Applications

CPVC is a special type of polyvinyl chloride (PVC) with added chloride, and is mainly used as a raw material in pipes for supplying hot water, industry, and sprinklers, etc., which require heat resistance.

 

2.Market Environment

In recent years, the switch from metal to CPVC in pipes used in buildings such as homes and factories, etc., in the emerging countries of South Asia including India, and the Middle East has been progressing. In parallel, construction demand concomitant with economic growth is also booming. Concomitantly, demand for CPVC is growing every year, and solid expansion is also expected in the future.

 

3.Background to Establishment of CPVC Compound Production and Sales Company and Its Objectives

Sekisui Chemical strengthened its CPVC resin production capacity at a group company, TOKUYAMA SEKISUI CO., LTD. (Hereinafter called “Tokuyama Sekisui”) in July this year to cope with expanding global demand centered on Asia. (Production capacity increased from 33,000 metric tonnes to 40,000 metric tonnes per year.) In addition, Tokuyama Sekisui is advancing research into compound design technology, and striving to improve CPVC compound quality and to reinforce competitiveness.

Further, as described above, it was agreed with Lubrizol to establish a CPVC resin manufacturing joint venture company in Thailand, and to promote the preparations for the current establishment, and this joint venture company manufactures CPVC resin based on Sekisui Chemical's unique thermal chlorination technology.

The aim is to achieve high quality and cost competitiveness by establishing a new compound production plant in the same industrial park as the joint venture company, and to implement consistent production from CPVC resin to compounds. Further, a sales base will be established in Bangkok. In this way, it is planned to expand our share of the CPVC market in Asia and the Middle East. 

 

4.Overview of CPVC Compound Production and Sales Company (planned)

 

1)

Company Name: SEKISUI SPECIALTY CHEMICALS (THAILAND) CO., LTD.

 

2)

Date of Establishment: January 2014

 

3)

Capital: 480 million Thai baht

 

4)

Shareholder Configuration: Sekisui Chemical 90%, Tokuyama Sekisui 10%

 

5)

Principal Business: Production and sales of CPVC compounds

 

6)

Start of Production: January 2015

 

7)

Production Capacity: 24,000 metric tonnes / year

 

8)

Address:

(Plant) Hemaraj Eastern Industrial Estate, Map Ta Phut, Rayong, Thailand

 

 

 

(Head office and sales base) Bangkok, Thailand

 

9)

Number of Employees: Approximately 70 (Total at the plant, head office, and sales base)

 

5.Sekisui Chemical CPVC Resin Production Capacity

Construction is scheduled to start at the CPVC resin manufacturing joint venture company with Lubrizol in January 2014, and operations to start at the beginning of 2015 with a production capacity of 30,000 metric tonnes/year, but production capacity will be increased to 40,000 metric tonnes/year during the first half of 2016.
 

(Prospective) CPVC Resin and Compounds Production Base and Capacity Table

Production Base

Production Capacity (Metric tonnes/Year)

Notes

Japan


Tokuyama Sekisui Co., Ltd.
(Shunan, Yamaguchi Prefecture)
 

Resin

40,000

Expansion completed in July 2013

 Thailand


Joint venture company with Lubrizol
(Rayong Province)

 

Resin

30,000

At (scheduled) start of operation in January 2015
Scheduled to increase to 40,000 metric tonnes/year during the 1st half of 2016 


SEKISUI SPECIALTY CHEMICALS(THAILAND)
(Rayong Province)
 

Compounds

24,000

At (scheduled) start of operation in January 2015

 

6.Addendum

Approval by the relevant authorities of each country is a condition of establishing the CPVC resin manufacturing joint venture company, etc., described in this press release. 


 

***

*Reference:

 

Specialty Chemicals divisionlink

 

Agreement to Establish Joint Venture Company in Thailand to Manufacture Chlorinated Polyvinyl Chloride (CPVC)(Press release February 21, 2013)

 

Press Contact

SEKISUI CHEMICAL CO., LTD.
Corporate Communication Department, Public Relations Group
Fax: +81-(0)3-5521-0510


Disclaimer

This press release may contain forward-looking statements. Such forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements due to changes in global economic, business, competitive market and regulatory factors.
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