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)
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Company Name: SEKISUI SPECIALTY CHEMICALS (THAILAND) CO., LTD. |
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Date of Establishment: January 2014 |
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Capital: 480 million Thai baht |
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Shareholder Configuration: Sekisui Chemical 90%, Tokuyama Sekisui 10% |
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Principal Business: Production and sales of CPVC compounds |
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Start of Production: January 2015 |
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Production Capacity: 24,000 metric tonnes / year |
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Address: |
(Plant) Hemaraj Eastern Industrial Estate, Map Ta Phut, Rayong, Thailand |
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(Head office and sales base) Bangkok, Thailand |
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Number of Employees: Approximately 70 (Total at the plant, head office, and sales base) |
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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.
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(Prospective) CPVC Resin and Compounds Production Base and Capacity Table |
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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.
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*Reference:
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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.