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Chlorinated Polyvinyl Chloride (CPVC) Resin and Compound Plants in Thailand Began Operations in Earnest
Jun 30, 2015

SEKISUI CHEMICAL CO., LTD

-Meeting increased demand for heat-resistant pipes in India and the Middle East
-New environmentally-friendly compound products

 

Sekisui Chemical Co., Ltd. (President: Teiji Koge, hereinafter called "Sekisui Chemical") has completed construction of both the chlorinated polyvinyl chloride (CPVC) plant (hereinafter called the "resin plant")*1 and the CPVC compound*2 plant (hereinafter called the "compound plant") on the Hemaraj Eastern Industrial Estate in Map Ta Phut, southeast Thailand, and both started operations in earnest this month.

As well as selling the CPVC compound as the "Durastream" brand, it is planned to expand sales of mainly the raw materials for heat-resistant pipes in India and the Middle East, where construction demand is expanding, using the environmentally-friendly compound products developed anew by Sekisui Chemical.

*1: The resin plant is a joint venture with America's Lubrizol Corporation (See 5. (1) below)
*2: 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.

 

CPVC Compound

→

Main Application: Heat-resistant pipes

 

 

CPVC Compound

 

Main Application:
Heat-resistant pipes

 

 

2. Market Environment

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

 

3. Backgrounds

In February 2013, Sekisui Chemical came to promote the construction of a new resin plant using an agreement with the Lubrizol Corporation through the establishment of a CPVC resin manufacturing joint venture company in Thailand.

Further, Sekisui Chemical strengthened its CPVC resin production capacity at a group company, TOKUYAMA SEKISUI CO., LTD. (Hereinafter called “Tokuyama Sekisui”) in July 2013. (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.

In addition, Sekisui Chemical aims to achieve high quality and cost competitiveness through consistent production from CPVC resin to compounds, and so has established a production and sales company for CPVC compounds in Thailand, and has been promoting the construction of a new compound plant as well as the configuration of a sales system.

 

4. Future Business Development

1) New Products Brand

On the startup of the Thai plants on this occasion, Sekisui Chemical will globally roll out the company's new compound products as the "Durastream" brand.

Durastream

 

2) Sales Launch of New CPVC Compound Products

Generally, tin and lead compounds are used as stabilizing agents in the production of CPVC compounds. However, it is feared that tin and lead can negatively impact the environment and human health due to the way they are handled, and so Sekisui Chemical and Tokuyama Sekisui have been promoting the development of CPVC compounds that use stabilizing agents with no tin or lead.

In future, production will start at the newly-built Thai compound plant with the aim of expanding sales in India and the Middle East.

This will globally supply competitive, high-quality products.

 

5. Overview of the CPVC Resin and Compound Production and Sales Companies 

(1) CPVC Resin Production Company

 1) Company Name:  S  AND  L  SPECIALTY  POLYMERS  CO.,  LTD. 

 2) Date of Establishment: April 10, 2013(*3)

 3) Capital: 1700 million Thai baht
  (Investment ratio: Sekisui Chemical 51%, Lubrizol Advanced Materials(*4) 49%)

 4) Representative: CEO Yoshihiko Eguchi

 5) Principal Business: Production of CPVC

 6) Production Capacity: 30,000 metric tonnes / year
  (*Scheduled to increase to 40,000 tonnes / year in 2016. Expansion to approx. 60,000 tonnes is possible on site.)

 7) Address: Hemaraj Eastern Industrial Estate, Map Ta Phut, Rayong, Thailand

 8) Number of Employees: 59

*3: The joint venture company launched on May 20, 2014
*4: Lubrizol Advanced Materials is a 100% subsidiary company of the Lubrizol Corporation

 

S  AND  L  SPECIALTY  POLYMERS  CO.,  LTD. 

CPVC Resin Plant

Photos of CPVC Resin Plant

 

2) CPVC Compound Production and Sales Company

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

 2) Date of Establishment: December 19, 2013

 3) Capital: 476 million Thai baht 
  (Investment ratio: Sekisui Chemical 90%, Tokuyama Sekisui 10%)

 4) Representative: President Toshiya Yasunaga

 5) Principal Business: 

The manufacture and sale of CPVC compounds, and the sale of polyvinyl alcohol (PVA) resins and polyvinyl butyral (PVB) resins, etc.

 6) Production Capacity: 24,000 metric tonnes / year

 7) Address: Bangkok, Thailand (*Plant address is the same as for the resin plant)

 8) Number of Employees: 69

 

Photo of CPVC Compounds Plant

Photo of CPVC Compounds Plant

 

 

Press Contact

SEKISUI CHEMICAL CO., LTD.
Public Relations Group, Business Strategy Department
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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