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Mitsubishi Chemical has new hardened PVC sheeting
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American Pipe Corp. The purchase of the Borden unit is expected to increase Westlake’s share of the N American market from 5% to 8%. Plastics News, 22 Aug 2002 (Website: http://www.plasticsnews.com)
Puerto Rico’s Vassallo starting Florida production Industrias Vassallo Inc (which makes PVC pipes and fittings) has invested $1 M in turning its 200,000 sq ft distribution centre in Lake Wales, FL into a production unit for making kayaks, water tanks and flowerpots. The company has installed a rotational moulding machine and hired 15 new workers. In Nov 2001 Vassallo began production of wood composites and is aiming to make annual sales of $120 M by 2005. For the year to 30 Jun 2002 Vassallo’s rotational moulding business posted sales of $3.9 M. The company expects its overall sales in the year to 30 Jun 2003 to reach $60 M (compared with $46 M in the previous year). Plastics News, 16 Aug 2002 (Website: http://www.plasticsnews.com)
Tosoh expects 31% higher group midterm operating profit, but below target For Apr-Sep 2002, Tosoh Corp expects to post a group operating profit of Yen 9.5 bn, up 31% but Yen 2.5 bn short of its initial projection, due to higher material costs and slow improvement at a vinyl chloride subsidiary. The firm’s move to turn Organo Corp into a subsidiary helped midterm sales to rise 11% to Yen 225 bn, as did brisk sales of polyethylene and other petrochemicals. Group pretax profit for the period is predicted at Yen 6.5 bn, a rise of 33%, and the firm expects to break even on a net basis. For the full fiscal year ending Mar 2003, group operating profit is expected to reach Yen 27 bn, a rise of 73%. Nikkei Net, 30 Aug 2002 (Website: http://www.nni.nikkei.co.jp/)
CertainTeed plans window fabrication plant In early 2003 CertainTeed Corp’s new 210,000 sq ft vinyl window unit in
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P O LY V I N Y L C H L O R I D E
Lebanon, IN will go into production. Construction work on the unit began on 15 Aug 2002. Initially the new unit will employ 120 people but the figure should rise to 250 by 2008. The Lebanon city authorities have granted the unit a 10-year tax abatement and are also to provide training grants and tax credits. For 2001 CertainTeed’s extruded products business registered sales of $734 M, with 3000 employees. Plastics News, 16 Aug 2002 (Website: http://www.plasticsnews.com)
Qilu meets with severe challenges During 2001 and 1H 2001 Qilu Petrochemical Co Ltd, a subsidiary of Sinopec, recorded a loss of almost RMB Yuan 1.5 bn. The company has an asset value of RMB Yuan 24.8 bn. It can process 8.0 M tonnes/y crude oil and produce 500,000 tonnes/y ethylene. It accounts for 7.5% of Sinopec’s crude oil production and 16% of its ethylene capacity. Almost 1 M tonnes/y of chemical products can be produced by its downstream units. Between 2001 and 2005 Qilu aims to invest RMB Yuan 6.0 bn to expand and build chemical projects. RMB Yuan 4.6 bn is to be used to expand ethylene capacity. Completion is expected during 2004 when the company will have a capacity to produce 370,000 tonnes/y PVC, 40,000 tonnes/y LLDPE, 50,000 tonnes/y PP, 140,000 tonnes/y styrene and 200,000 tonnes/y ionmembrane caustic soda.
termites, mould and corrosion. The walls give both thermal and acoustic insulation, since the concrete is mixed with polystyrene. Odebrecht hopes to export the system to Asia, Africa, the Middle East and Central and South America, including 30,000 units in Costa Rica, Guatemala and Venezuela, and 250,000 classrooms in Angola. Gazeta Mercantil, 4 Sep 2002 (Website: http://www.gazeta.com.br)
Firm finds success with plastics shield for electronic devices Shielding For Electronics Inc’s Form/Met plastics shields (designed to offer protection from electromagnetic interference and radiation emissions) are currently being tested by mobile phone manufacturers. The shields consist of a glycol modified polyethylene terephthalate, PVC or polycarbonate film coated on one or both sides with aluminium. Demand for Form/Met shields has increased by 100% + compared with 2001. The use of Form/Met shields removes the need for component painting or plating. The shield can be used on 95% of existing electronic products. Shielding for Electronics Inc (SFEI) employs 40+ people in Mauston, WI and 10 in Sunnyvale, CA. Plastics News, 5 Aug 2002 (Website: http://www.plasticsnews.com)
Mitsubishi Chemical has new hardened PVC sheeting
China Chemical Reporter, 26 Jul 2002, 13 (21), 6
INNOVATION AND NEW PRODUCTS Houses are in kit form The Casaforte construction system, produced by Rio Grande do Sul statebased Medabil Tessenderlo is to have technical and commercial management provided by Construtora Norberto Odebrecht. The Medabil system uses PVC, concrete and steel to produce houses in kit form and provides resistance to fire, humidity,
For its fiscal 2002 (ends 31 Mar 2002), the Functional materials & plastic-based products division of Mitsubishi Chemical Corp (MCC) has reported sales of Yen 331.9 bn (–3.5% on fiscal 2001) and operating income of Yen 11.2 bn (–43.4%). Lower demand for public works projects and information technology hampered operations during the year. MCC also faced difficulties in polyester film owing to the information technology downturn and a sluggish US economy. Among several highlights of 2001, Mitsubishi Plastics Inc started marketing its HISHI PLATE 101FM series of hardened PVC sheeting for industrial applications. The new product has superior fire-resistance.
OCTOBER 2002
F O C US
O N
In the following month, that subsidiary developed a new type of movable partition with photocatalyst coating. Mitsubishi Chemical Annual Report 2002, 30 Jul 2002, 14-15 (Mitsubishi Chemical Corp, 5-2, Marunouchi 2-chome, Chiyoda-Ku, Tokyo 100-0005, Japan. Tel: +81-33283-6111. Fax: +81-33283-5874. Website: http://www.m-kagaku.co.jp)
P O LY V I N Y L C H L O R I D E
50,000-100,000 tonnes/y using the calcium carbide process. However expansion plans for producers with a capacity of 100,000-200,000 tonnes/y will not be seen until 2003. China Chemical Reporter, 26 Jul 2002, 13 (21), 22
PVC in China: some trade figures Modifier with a touch Eliokem is offering a powdered acrylic elastomer, called Sunigum, for creating elastomeric polymers. The product, which provides heat and UV resistance, can be applied with polyolefins, PVC, polyurethanes, copolyesters and styrenics, including ABS. Sunigum can be used in products such as gaskets for glazing products instrument panel skin and cable jacketing. European Plastics News, Sep 2002, 29 (8), 46
PVC IN CHINA, INDIA AND JAPAN Medical glove production base starts construction in China RMB Yuan 50 M has been invested by Zhangjiagang Top Glove Co Ltd over the last 12 years to establish facilities for the production of medical gloves in China. A further $10 M is now to be invested by the joint venture company in 12 more PVC glove production lines with capacity for 1.5 bn gloves/y. All products will be exported, generating an export value of $28 M and sales of RMB Yuan 230 M. China Chemical Reporter, 26 Aug 2002, 13 (24), 7
PVC drops back in China after touching high in 1H 2002 The main features affecting the PVC market in China during 2H 2002 are discussed. These include the global economic situation, increased market consumption, the price of crude oil and raw material imports. China intends to expand capacity for PVC producers with a current capacity of
OCTOBER 2002
During 2001 China produced 10.7 M tonnes of the five major generalpurpose synthetic resins including 2.87 M tonnes of PVC (up 8.73% over 2000). Between Jan-May 2002 output totalled 1.26 M tonnes. China increased its capacity for producing these five resins by 22.47% to 11.67 M tonnes in 2001. China has a capacity to produce 2.54 M tonnes/y PVC. Imports of PVC by China increased by 32.63% in 2001 to 1.916 M tonnes. During Jan-May 2002 imports of pure PVC rose by less than 1% compared to the same period in 2001. China’s apparent consumption of PVC increased by 17.77% during 2001 to 5.376 M tonnes. Imports of ethylene dichloride increased by 48.57% in 2001 to 48,100 tonnes. Imports of vinyl chloride monomer rose by 46.1% to 68,700 tonnes. Between Jan-May 2002 imports of ethylene dichloride fell by 41.7% to 115,800 tonnes compared to Jan-May 2001 and imports of vinyl chloride monomer rose by 52.56% to 395,600 tonnes. A table details the production and consumption of PVC in China in 2000, 2001 and Jan-May 2002. China Chemical Reporter, 26 Jul 2002, 13 (21), 20
Demand for rigid vinyl to drive growth in PVC business in India; Finolex to forward integrate. The PVC market in India has been growing at around 13% since 1992 with unexpected 16% growth during 2001-2002. In India, the demand for rigid products has surpassed the flexible ones in line with global trends. The Indian PVC industry has to compete with poor infrastructure and expensive and unreliable power cuts. However, PVC has not been faced by serious inter-polymer substitution from other commodity materials like PET, HDPE and PP. There is also no antiPVC campaign. The demand for flexible products is sluggish with
stagnation in the end-user segment. On the other hand demand for rigid PVC products particularly pipes is expected from the distribution of water for agriculture. Overcoming water scarcity and the increasing water usage in India are factors helping the PVC market. Presently, India is a net importer of PVC and this would continue until the inception of a new project. Finolex Industries Ltd (Finolex), the Pune-based PVC producer, has identified forward integration into finished products as a growth strategy. As part of forward integration, the company has started manufacturing PVC pipes there by increasing the captive consumption of PVC to 50,000 tonnes from 20,000 tonnes and plans to take this consumption to 75,000 tonnes in the near future. PVC capacity of Finolex has increased to 130,000 tonnes as against the whole Indian industry’s capacity of 788,000 tonnes. Chemical Weekly, 13 Aug 2002, 47 (51), 112-114
PVC in Japan The article reviews the Japanese PVC business in 2001. The Japanese PVC industry has overcapacity, with plants capable of 2.574 M t/y, despite extensive consolidation and a net reduction of 300,000 t. Government figures suggest the industry made total losses of Yen 10 bn/y, and has done so every year in recent years. In 2001, Japanese PVC production declined to 2.195 M t/y (8.5% down on 2000), with domestic demand of 1.521 M t/y (down 9.4%). Exports of PVC resin to China and elsewhere declined by 9.7% to 697,758 t/y, but imports increased by 238% to 26,537 t/y. (On average, synthetic resin exports of all types fell by only 6.6%, with thermosetting resins among the worst affected). Exports of PVC compound remained very small, while imports increased 137% to 8,174 t/y. Exports of PVC board, film, sheet, foil and tape combined reached 59,634 t/y (8.9% down on 2000) and imports of the same group of products increased by 7.2% to 23,238 t/y. PVC pipe and tubing exports declined by 11%, despite increases in the corresponding figures for polypropylene and polyethylene. Japan Chemical Week, 1/8 Aug 2002, 43 (2182), 8-9
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American Pipe Corp. The purchase of the Borden unit is expected to increase Westlake’s share of the N American market from 5% to 8%. Plastics News, 22 Aug 2002 (Website: http://www.plasticsnews.com)
Puerto Rico’s Vassallo starting Florida production Industrias Vassallo Inc (which makes PVC pipes and fittings) has invested $1 M in turning its 200,000 sq ft distribution centre in Lake Wales, FL into a production unit for making kayaks, water tanks and flowerpots. The company has installed a rotational moulding machine and hired 15 new workers. In Nov 2001 Vassallo began production of wood composites and is aiming to make annual sales of $120 M by 2005. For the year to 30 Jun 2002 Vassallo’s rotational moulding business posted sales of $3.9 M. The company expects its overall sales in the year to 30 Jun 2003 to reach $60 M (compared with $46 M in the previous year). Plastics News, 16 Aug 2002 (Website: http://www.plasticsnews.com)
Tosoh expects 31% higher group midterm operating profit, but below target For Apr-Sep 2002, Tosoh Corp expects to post a group operating profit of Yen 9.5 bn, up 31% but Yen 2.5 bn short of its initial projection, due to higher material costs and slow improvement at a vinyl chloride subsidiary. The firm’s move to turn Organo Corp into a subsidiary helped midterm sales to rise 11% to Yen 225 bn, as did brisk sales of polyethylene and other petrochemicals. Group pretax profit for the period is predicted at Yen 6.5 bn, a rise of 33%, and the firm expects to break even on a net basis. For the full fiscal year ending Mar 2003, group operating profit is expected to reach Yen 27 bn, a rise of 73%. Nikkei Net, 30 Aug 2002 (Website: http://www.nni.nikkei.co.jp/)
CertainTeed plans window fabrication plant In early 2003 CertainTeed Corp’s new 210,000 sq ft vinyl window unit in
4
P O LY V I N Y L C H L O R I D E
Lebanon, IN will go into production. Construction work on the unit began on 15 Aug 2002. Initially the new unit will employ 120 people but the figure should rise to 250 by 2008. The Lebanon city authorities have granted the unit a 10-year tax abatement and are also to provide training grants and tax credits. For 2001 CertainTeed’s extruded products business registered sales of $734 M, with 3000 employees. Plastics News, 16 Aug 2002 (Website: http://www.plasticsnews.com)
Qilu meets with severe challenges During 2001 and 1H 2001 Qilu Petrochemical Co Ltd, a subsidiary of Sinopec, recorded a loss of almost RMB Yuan 1.5 bn. The company has an asset value of RMB Yuan 24.8 bn. It can process 8.0 M tonnes/y crude oil and produce 500,000 tonnes/y ethylene. It accounts for 7.5% of Sinopec’s crude oil production and 16% of its ethylene capacity. Almost 1 M tonnes/y of chemical products can be produced by its downstream units. Between 2001 and 2005 Qilu aims to invest RMB Yuan 6.0 bn to expand and build chemical projects. RMB Yuan 4.6 bn is to be used to expand ethylene capacity. Completion is expected during 2004 when the company will have a capacity to produce 370,000 tonnes/y PVC, 40,000 tonnes/y LLDPE, 50,000 tonnes/y PP, 140,000 tonnes/y styrene and 200,000 tonnes/y ionmembrane caustic soda.
termites, mould and corrosion. The walls give both thermal and acoustic insulation, since the concrete is mixed with polystyrene. Odebrecht hopes to export the system to Asia, Africa, the Middle East and Central and South America, including 30,000 units in Costa Rica, Guatemala and Venezuela, and 250,000 classrooms in Angola. Gazeta Mercantil, 4 Sep 2002 (Website: http://www.gazeta.com.br)
Firm finds success with plastics shield for electronic devices Shielding For Electronics Inc’s Form/Met plastics shields (designed to offer protection from electromagnetic interference and radiation emissions) are currently being tested by mobile phone manufacturers. The shields consist of a glycol modified polyethylene terephthalate, PVC or polycarbonate film coated on one or both sides with aluminium. Demand for Form/Met shields has increased by 100% + compared with 2001. The use of Form/Met shields removes the need for component painting or plating. The shield can be used on 95% of existing electronic products. Shielding for Electronics Inc (SFEI) employs 40+ people in Mauston, WI and 10 in Sunnyvale, CA. Plastics News, 5 Aug 2002 (Website: http://www.plasticsnews.com)
Mitsubishi Chemical has new hardened PVC sheeting
China Chemical Reporter, 26 Jul 2002, 13 (21), 6
INNOVATION AND NEW PRODUCTS Houses are in kit form The Casaforte construction system, produced by Rio Grande do Sul statebased Medabil Tessenderlo is to have technical and commercial management provided by Construtora Norberto Odebrecht. The Medabil system uses PVC, concrete and steel to produce houses in kit form and provides resistance to fire, humidity,
For its fiscal 2002 (ends 31 Mar 2002), the Functional materials & plastic-based products division of Mitsubishi Chemical Corp (MCC) has reported sales of Yen 331.9 bn (–3.5% on fiscal 2001) and operating income of Yen 11.2 bn (–43.4%). Lower demand for public works projects and information technology hampered operations during the year. MCC also faced difficulties in polyester film owing to the information technology downturn and a sluggish US economy. Among several highlights of 2001, Mitsubishi Plastics Inc started marketing its HISHI PLATE 101FM series of hardened PVC sheeting for industrial applications. The new product has superior fire-resistance.
OCTOBER 2002
F O C US
O N
In the following month, that subsidiary developed a new type of movable partition with photocatalyst coating. Mitsubishi Chemical Annual Report 2002, 30 Jul 2002, 14-15 (Mitsubishi Chemical Corp, 5-2, Marunouchi 2-chome, Chiyoda-Ku, Tokyo 100-0005, Japan. Tel: +81-33283-6111. Fax: +81-33283-5874. Website: http://www.m-kagaku.co.jp)
P O LY V I N Y L C H L O R I D E
50,000-100,000 tonnes/y using the calcium carbide process. However expansion plans for producers with a capacity of 100,000-200,000 tonnes/y will not be seen until 2003. China Chemical Reporter, 26 Jul 2002, 13 (21), 22
PVC in China: some trade figures Modifier with a touch Eliokem is offering a powdered acrylic elastomer, called Sunigum, for creating elastomeric polymers. The product, which provides heat and UV resistance, can be applied with polyolefins, PVC, polyurethanes, copolyesters and styrenics, including ABS. Sunigum can be used in products such as gaskets for glazing products instrument panel skin and cable jacketing. European Plastics News, Sep 2002, 29 (8), 46
PVC IN CHINA, INDIA AND JAPAN Medical glove production base starts construction in China RMB Yuan 50 M has been invested by Zhangjiagang Top Glove Co Ltd over the last 12 years to establish facilities for the production of medical gloves in China. A further $10 M is now to be invested by the joint venture company in 12 more PVC glove production lines with capacity for 1.5 bn gloves/y. All products will be exported, generating an export value of $28 M and sales of RMB Yuan 230 M. China Chemical Reporter, 26 Aug 2002, 13 (24), 7
PVC drops back in China after touching high in 1H 2002 The main features affecting the PVC market in China during 2H 2002 are discussed. These include the global economic situation, increased market consumption, the price of crude oil and raw material imports. China intends to expand capacity for PVC producers with a current capacity of
OCTOBER 2002
During 2001 China produced 10.7 M tonnes of the five major generalpurpose synthetic resins including 2.87 M tonnes of PVC (up 8.73% over 2000). Between Jan-May 2002 output totalled 1.26 M tonnes. China increased its capacity for producing these five resins by 22.47% to 11.67 M tonnes in 2001. China has a capacity to produce 2.54 M tonnes/y PVC. Imports of PVC by China increased by 32.63% in 2001 to 1.916 M tonnes. During Jan-May 2002 imports of pure PVC rose by less than 1% compared to the same period in 2001. China’s apparent consumption of PVC increased by 17.77% during 2001 to 5.376 M tonnes. Imports of ethylene dichloride increased by 48.57% in 2001 to 48,100 tonnes. Imports of vinyl chloride monomer rose by 46.1% to 68,700 tonnes. Between Jan-May 2002 imports of ethylene dichloride fell by 41.7% to 115,800 tonnes compared to Jan-May 2001 and imports of vinyl chloride monomer rose by 52.56% to 395,600 tonnes. A table details the production and consumption of PVC in China in 2000, 2001 and Jan-May 2002. China Chemical Reporter, 26 Jul 2002, 13 (21), 20
Demand for rigid vinyl to drive growth in PVC business in India; Finolex to forward integrate. The PVC market in India has been growing at around 13% since 1992 with unexpected 16% growth during 2001-2002. In India, the demand for rigid products has surpassed the flexible ones in line with global trends. The Indian PVC industry has to compete with poor infrastructure and expensive and unreliable power cuts. However, PVC has not been faced by serious inter-polymer substitution from other commodity materials like PET, HDPE and PP. There is also no antiPVC campaign. The demand for flexible products is sluggish with
stagnation in the end-user segment. On the other hand demand for rigid PVC products particularly pipes is expected from the distribution of water for agriculture. Overcoming water scarcity and the increasing water usage in India are factors helping the PVC market. Presently, India is a net importer of PVC and this would continue until the inception of a new project. Finolex Industries Ltd (Finolex), the Pune-based PVC producer, has identified forward integration into finished products as a growth strategy. As part of forward integration, the company has started manufacturing PVC pipes there by increasing the captive consumption of PVC to 50,000 tonnes from 20,000 tonnes and plans to take this consumption to 75,000 tonnes in the near future. PVC capacity of Finolex has increased to 130,000 tonnes as against the whole Indian industry’s capacity of 788,000 tonnes. Chemical Weekly, 13 Aug 2002, 47 (51), 112-114
PVC in Japan The article reviews the Japanese PVC business in 2001. The Japanese PVC industry has overcapacity, with plants capable of 2.574 M t/y, despite extensive consolidation and a net reduction of 300,000 t. Government figures suggest the industry made total losses of Yen 10 bn/y, and has done so every year in recent years. In 2001, Japanese PVC production declined to 2.195 M t/y (8.5% down on 2000), with domestic demand of 1.521 M t/y (down 9.4%). Exports of PVC resin to China and elsewhere declined by 9.7% to 697,758 t/y, but imports increased by 238% to 26,537 t/y. (On average, synthetic resin exports of all types fell by only 6.6%, with thermosetting resins among the worst affected). Exports of PVC compound remained very small, while imports increased 137% to 8,174 t/y. Exports of PVC board, film, sheet, foil and tape combined reached 59,634 t/y (8.9% down on 2000) and imports of the same group of products increased by 7.2% to 23,238 t/y. PVC pipe and tubing exports declined by 11%, despite increases in the corresponding figures for polypropylene and polyethylene. Japan Chemical Week, 1/8 Aug 2002, 43 (2182), 8-9
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