Hanwha Chemical to Build PVC Plant in China

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Researched by Industrial Info Resources (Sugar Land, Texas)--South Korean plastics group Hanwha Chemical Corporation has announced plans to invest about $360.68 million to build a polyvinyl chloride (PVC) plant in Ningbo in eastern China's Zhejiang Province. The plant's main products will be vinyl chloride monomer (VCM) and ethylene dichloride (EDC). China's government has approved the project, which is expected to go into production in 2010. Its annual production capacity of VCM is expected to be 300,000 metric tons and 500,000 metric tons of EDC.

The Hanwha group also announced that it has set up another subsidiary company, Hanwha L&C Czech s.r.o. in the Czech Republic. The subsidiary's products include plastic flooring materials, interior automotive parts, construction material and PVC compounds.

The Hanwha group will also invest about $18 million to build a plant in southern Thailand. This plant's main product will be alkali soluble resin (ASR). ASR and emulsion are used as the raw materials of watercolor paints and water-based inks.

The Chinese branch Hanwha Chemical was founded in 2002 to support the company's business development in China and promote cooperation with possible sales partners. Hanwha Chemical is a major worldwide petrochemical company that produces both organic and inorganic chemicals.

Hanwha Chemical, owned 44% by the Hanwha group, is known as the third-largest producer of low-density polyethylene (LDPE) in Asia with a capacity of 375,000 tons per year. It can also produce almost 400,000 metric tons of linear LDPE and 600,000 metric tons of VCM every year.

Last year, Hanwha Chemical's year-over-year profit in the fourth quarter decreased 8.8%, mainly because of high feedstock prices and slowing demand. However, the company's profit rose 46.5% compared with last year, and sales increased 12%. The company is Korea's leader in the development of new business areas, including CMP slurry, water-soluble resin and energy-efficient conductive balls.

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