20 February 2013
Details
Sekisui Chemicals and
The Lubrizol Corporation
agreed to establish a joint venture company in Thailand
to manufacture chlorinated polyvinyl chloride (CPVC)
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CPVC features and applications
- CPVC is a special type of polyvinyl chloride
with added chloride and
is mainly used as a raw materials in
pipes for supplying hot water, industry
and sprinklers and etc.,
which requires heat resistance.
CPVC Market Environment
- In recent years, Demand for CPV is increasing every year due to
* the switch from metal to CPVC in pipes
used in buildings such as home and factory and etc.,
in the emerging countries of South East Asia
including India and The Middle East
* growth in construction industry driven by economic growth
then solid expansion is expected.
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Backgroud of cooperation : Sekisui and The Lubrizol
Both companies
- has been faced with the necessity to strengthen
global CPVC production capacity centered on Asia and
- shared the same views on reducing investment risks
which led to the agreement to establish
the manufacturing joint venture company.
In addition Thailand was chosen as a location because of
* its close proximity to area of demand and
* FTA benefit
For CPVC compound, both companies will respectively
procure the same amount of CPVC
from the joint venture company,
which meets specific requirements of each company.
Each company will establish its own new production site
in Asia and sales activities are to be conducted independently.
About CPVC compound
CPVC compound is a substance made of CPVC
mixed with additvies necessary for the
molding process of pipes and etc.
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Overview of the planned joint venture company
Location Hemraj Eastern Industrial Estate,
Map Ta Phut, Rayong, Thailand
Business Production of chlorinated polyvinyl chloride
(CPVC)
Investment US $50 million
Ownership 51 % by Sekisui
49 % by Lubrizol Advanced Materials
Production capacity and operation schedule
Phase 1 initial capacity 30,000 tons per year
by the end of 2014
Phase 2 doubling capatity to 60,000 tons pery year
by the end of 2016
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