Kem One/Chemplast Sanmar jv for CPVC in India

PVC maker Kem One is partnering with Chemplast Sanmar, a PVC manufacturer in India, to establish Kem OneChemplast, a 50:50 a joint venture. Located in India, the future plant will provide a domestic answer to the increasing demand for chlorinated polyvinyl chloride (CPVC), especially for the building sector.

The new facility, for which approvals are in the process of being obtained, will come up at a coastal location at Karaikal, Puducherry, India. The project which is being set up at an estimated cost of Rs. 325 crores will have technology from Kem One and a capacity of 22,000 tonnes/year of CPVC resins. It will also manufacture CPVC compounds.

Kem One is the second largest producer of PVC in Europe. Mainly located in France, it has 1,300 employees and an annual turnover of EUR800 million. Its eight industrial sites manufacture a wide range of PVC resins, caustic soda and chlorine derivatives.

It builds on its knowledge of chlorochemicals and vinyl products inherited from a century-old history. By starting CPVC resins and compounds production in the 1970’s in Europe Kem One says it has a strong expertise in CPVC industrial process. With this partnership with Chemplast Sanmar, Kem One is expanding its footprint in the fast growing Indian market.

Chemplast Sanmar, which will celebrate its Golden Jubilee in May 2017, is the flagship company of the Sanmar Group. It is a major manufacturer of PVC resins, caustic soda, chloromethanes, refrigerant gas and industrial salt. The addition of CPVC (a special type of PVC with added chlorine) would add to its already strong position in the Indian chemicals industry.

The Sanmar Group, of which Chemplast Sanmar is a constituent, has had a record number of joint-ventures in India. Some of these partnerships, which were established over 40 years ago, are still running successfully.

CPVC is mainly used as a raw material to produce pipes and fittings for supplying water which requires heat resistance, pressure resistance and high tolerance for water treatment.

In recent years, there is a switch from metal to CPVC in pipes used in buildings in India, and in parallel, overall construction demand has also been witnessed. CPVC can also be used for industrial applications which require a high level of chemical resistance and for sprinklers. The demand for CPVC is expanding significantly and will continue to grow rapidly in India. The manufacturing joint venture company will thus provide the domestic answer to the Indian customers’ needs that is currently being met through imports.

The establishment of the manufacturing joint venture company mentioned above as Kem One Chemplast will be subject to approval from the competent authorities.