By signing a contract with the company OAO Sayanskchimplast, the largest PVC producer in Russia, for the erection of a membrane electrolysis plant, C A C has completed another step of its strategy to position itself on the CIS market. The membrane electrolysis plant satisfies the latest technological criteria and will handle 150,000 tons of chlorine and 170,000 tons of caustic soda (NaOH) per year. It will serve as a replacement for the previous mercury electrolysis plant which is still in operation. The mechanical part of the overall project is scheduled to be completed by March 2006, while commissioning will be completed in August of the same year.
By doing so, C A C is actively continuing the activities of the former Lurgi Life Science GmbH, Chemnitz, specifically in this technological segment of re-vamping and expanding electrolysis plants that were erected for the most part as mercury or membrane electrolysis plants more than 30 years ago. These plants display significant wear and tear and no longer fulfill current interna-tional standards specifically in terms of technology, efficiency and ecology.
In addition to erecting the membrane electrolysis plant in Sayansk, C A C's scope of services include basic and detail engineering (for civil works, structural steel, heating and ventilation systems), project management, delivery, field erection supervision, startup support and training of plant personnel. The Sayanskchimplast project is being implemented as a joint international effort with electrolysis technology coming from Asahi Kasei, Japan, and adapted to the existing infrastructure by a Russian partner which is responsible for civil and erection services. In this regard, the Russian licensing authorities have specific requirements which envisage a special qualification process by the plant constructor before introducing this new technology. Financing for the components that are being imported from Japan and Germany was successfully organized by C A C in the form of a secured loan from Hermes. This provides both the customer and C A C with the security of knowing that the project will be completed on schedule.
The first plant that was erected with this technology in the territory of the for-mer Soviet Union was successfully completed by our company in Navoi, Uz-bekistan in 2001. This plant works optimally and to the utmost satisfaction of our customer.
Russia's PVC and downstream product market offers a lot of room for expan-sion. Forecasts anticipate that plastic consumption will increase by approx. 66% by the year 2007 when compared to 2003. Taking into account the target production of chlorine and caustic soda, the investments in the electrolysis plants are strategically important for the plastics industry as well as for the cellulose, textile and pharmaceutical industries (caustic soda). By maintaining close international partnerships, C A C has at its disposal modern technologies that reflect the specific requirements of the market.