MOSCOW (MRC) -- Lubrizol, an innovative specialty chemical company, is planning a four-year, USD400 million global expansion of its chlorinated polyvinyl chloride (CPVC) resin and compounding manufacturing sites, the company reported on its site.
With continued strong global demand for the company’s CPVC compounds, Lubrizol’s expansion efforts will be divided into two phases:
Phase 1 is to become operational by end of 2014 with the total capacity of 85,000 tonnes of CPVC resin and 100,000 tonnes of CPVC compound. The total investment in the project makes USD200 million.
Phase 1 includes the previously announced construction of a new CPVC resin and compounding facility in the United States. Initial resin capacity will be 55,000 tonnes and compound capacity will be 65,000 metric tonnes with a total investment of USD125 million.
Construction of a new CPVC compounding plant and warehouse in India is also a part of Phase 1. The total investment of USD40 million will include an initial capacity of 35,000 metric tonnes. The sites that are under final consideration are located in Gujarat and Maharashtra.
Besides, the previously announced joint investment in a CPVC resin manufacturing facility in Thailand is also included in Phase 1. Initial capacity will be 30,000 tonnes with a total investment of USD50 million and subject to receipt of all necessary government approvals.
Phase 2 is targeted to be operational by end of 2016. It adds 85,000 tonnes of CPVC resin and 100,000 tonnes of CPVC compound with total additional investment of approximately USD200 million.
Phase 2 includes an addition of 55,000 tonnes of resin capacity and 65,000 tonnes of compound capacity at the sites in the United States and India, which is under consideration at the moment. The total additional investment will be USD125 million.
Besides, it includes an expansion of the Phase 1 India compounding plant, adding 35,000 tonnes of capacity with total additional investment of USD15 million.
Phase 2 will also see the expansion of the Phase 1 joint investment plant in Thailand, adding 30,000 metric tons of resin capacity. The total additional investment is estimated to be USD50 million.
"Lubrizol is committed to ensuring product availability and quality for our global CPVC customers,” states Eric Schnur, president of Lubrizol Advanced Materials. “Through these global capacity expansion efforts, we will be in a strong position to meet global demand as well as better serve the needs of our existing and future customers to help them achieve their business success."
We remind that, as MRC wrote previously, 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 Lubrizol Corporation, a Berkshire Hathaway company, is an innovative specialty chemical company that apart from its production develops and supplies technologies to customers in the global transportation, industrial and consumer markets. Lubrizol’s advanced polymer technology delivers exceptional performance for the plumbing, fire sprinkler, industrial and other building and construction related applications. Lubrizol is providing innovative solutions for its customers’ high-performance application needs and remains committed to ongoing investment in its CPVC capabilities that support future growth.
MRC