Sekisui Chemical and Lubrizol to create CPVC JV in Thailand
Sekisui Chemical and Lubrizol will initialise a joint venture (JV) company in Thailand, in order to produce chlorinated polyvinyl chloride (CPVC), which is used as a raw material in pipes for supplying hot water, industry and sprinklers.
The move follows the decision of both companies to set up new overseas production bases to strengthen their CPVC production capacity.
Set up in the latter half of 2013, the JV facility is expected to help both companies to meet expanding demand in Asia and global customer needs.
The proposed plant will attract an investment of $50m and will have a manufacturing capcity of 30,000 metric tonnes per annum (mtpa).
The facility, which is expected to be upgraded to 60,000mtpa by the end of 2016, is scheduled to commence production by the end of 2014.
Sekisui Chemical will hold a 51% stake in the proposed JV company, while wholly-owned subsidiary of Lubrizol, Lubrizol Advanced Materials, will have 49%.
Lubrizol Advanced Materials president Eric Schnur said this is a significant step in expanding Lubrizol's CPVC business.
"And with the construction of this new manufacturing facility, we are better positioned to support their future business growth," Schnur added.