China Hopes to Top Worldwide PVC Producers by 2010

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Researched by Industrial Info Resources (Sugar Land, Texas)--China's steady investment in the Chemical Processing Industry (CPI) continues to increase, and one sector that represents a large share is polyvinyl chloride (PVC) resins. Since May 2007, Industrial Info Resources has identified 13 PVC projects in China that are planned to begin construction in 2008. The combined total investment value (TIV) for these new plants and units amounts to an estimated $1.3 billion in project spending.

The projects are evenly spread out over eight provinces: Guangxi (1), Guizhou (1), Henan (1), Jilin (1), Nei Mongol (2), Sichuan (3), Xinjiang (2), and Yunnan (2). Nei Mongol, also known as Inner Mongolia, will have the largest investment with $500 million being poured into the province. Sichuan Hanlong Group Company Limited (Chengdu, China) is planning a 1 million-metric-ton-per-year grassroot PVC plant in Baotou, Nei Mongol. This will be one of the largest PVC plants in the world, requiring an investment of approximately $450 million. The second plant planned for Nei Mongol is sponsored by Inner Mongolia Haiji Chlor-alkali Chemical Company (Wuhai, China) and will produce 240,000 metric tons a year of polyvinyl chloride at a cost of $50 million. Chengda Engineering Corporation of China (Chengdu, China) is performing the engineering for this unit addition.

The Sichuan Province has the most planned PVC projects to begin construction in 2008 with a combined capacity of 610,000 metric tons a year. The total cost for these three units will be $165 million. All three are expected to begin production by 2010.

China's increase in PVC production can be attributed to an increase in plastic product producers in China and the need for more domestically produced product. The Chinese government has relaxed some business laws allowing an increased level of private ownership and investments, helping to spur industrial development in the country. Large-scale industrial production has also grown, leading the charge in this sector ranging from construction products to electronics to toys to packaging applications. It is estimated that by 2009, China will have a mega-surplus of PVC and in 2010 will be a net exporter of the chemical. This will cause producers worldwide to rethink their production and marketing PVC resins and plastic product producers will probably be receiving a majority of their PVC from China, whether directly or indirectly from third-party sellers.

Industrial Info Resources (IIR) is the leading marketing information services company for the industrial process, heavy manufacturing and energy-related markets throughout the world. For more than 24 years, IIR has provided accurate and timely intelligence through products such as plant and project information databases, focused market databases, industry forecasting, key industry contacts, industry and territorial map products, direct marketing services and applications, and daily industry news.