S Korea's Hanwha aiming to become global top-10 PVC player
South Korea's Hanwha
Chemical Corp is planning to invest at least Won300bn
($256.3m/Euro210.1m) by 2007 to help build the company into one
of the world's top-ten polyvinyl chloride (PVC) producers, a
company spokesman said.
The spokesman said Hanwha expected to post Won1.2trn in annual
sales after expanding its PVC operations over the next three
years.
Hanwha is studying the feasibility of building new PVC plants and
lines, both in South Korea and China, but has yet to decide on
the locations or size of the facilities.
Hanwha has already announced that it is planning to shut down its
330 000 tonne/year vinyl chloride monomer (VCM) and 220 000
tonne/year PVC plants at Yeochun in October for maintenance and
limited debottleneckings, although the company has yet to decide
on the extent of these expansions.
The spokesman said the company has earmarked Won150bn for PVC
maintenance turnarounds over the next three years, Won120bn for
new PVC investments, Won 20bn for debottleneckings and Won50bn to
change the electrolysers in its chloralkali plants to the
ion-exchange membrane-cell route from the diaphragm route.
The spokesman said the planned expansion, mostly of its PVC
operations, was based on the belief that China's rapidly
increasing demand for PVC construction materials would continue
to boom and the closure of older PVC facilities in Europe and
North America would lead to a worldwide tightness in supply.
The company is planning to increase its PVC output by 20% by
2007. Currently it operates two PVC plants at Ulsan and Yosu with
a combined capacity of 500 000 tonne/year.
S Korea's Yeochon plans
SM expansion despite poor margins
South Korea's Yeochon NCC plans to proceed with its styrene
monomer plant expansion in October despite being dogged with poor
margins for the past two years, a source close to the firm said
Wednesday. Yeochon is slated to boost its plant capacity in
Yeochon to 285,000 mt/yr from 140,000 mt/yr during a 40-day
outage scheduled for Oct 20 through Nov 30. Another local SM
producer, Dongbu Chemical, has postponed its debottlenecking
project from October to early next year.
When Yeochon's expansion is complete, it would expect to sell
about 10,000mt of styrene per month in the spot market, compared
with 4,000mt currently.
The new styrene capacity would absorb Yeochon's benzene surplus,
and would even require it to buy a small quantity if the styrene
plant were to be run at full capacity through the year. Yeochon
typically sells two 3,000mt benzene spot cargoes per month.
The firm would remain an ethylene net seller even after the
styrene debottlenecking, the source added.
Hanwha Acquires AZDEL, Inc. from SABIC Innovative Plastics, PPG Industries
Hanwha Living & Creative (L&C) Corporation announced today that it has finalized the acquisition of AZDEL Inc., a 50/50 joint venture of SABIC Innovative Plastics (formerly GE Plastics) and PPG Industries. The acquisition of AZDEL will allow Hanwha to expand its offering of composite and advanced material solutions for the transportation and industrial segments. Terms were not disclosed.
Hanwha Living and Creative Corp. Established in Jul 1999
(100% owned by Hanwha Chemical)Products:Flooring, Window, Home Door, PVC Compound, Film & Sheet, GMT, EPP, Upholstery, SMC, Conpanel,
Hanex, Decor Sheet, etc
AZDEL Inc.
manufactures high performance thermoplastic composites designed
for both interior and exterior applications across many different
industries. Major segments served include automotive, heavy
truck, recreational vehicles, industrial, and other
transportation applications.
“We’re thrilled to add this leading
brand to our world-class portfolio of products,” said Woong Jin Choi, chief
executive officer, Hanwha L&C Corporation. “The acquisition of AZDEL is
another step along our path for global expansion and will
position us as a premier supplier of composite and high
performance material solutions to the transportation and
industrial segments.”
Mr. Hee-Cheul Kim, who currently serves as the vice president,
Auto & Industrial Material Division, has been named the chief
executive officer for AZDEL Inc. Melanie Cook, currently AZDEL,
Inc. president, will remain in her role. AZDEL will continue to
operate with its headquarters in Lynchburg, Virginia, USA and
sell its products under the AZDEL brand.
Going forward, AZDEL has entered into a long-term strategic
supply arrangement with SABIC Innovative Plastics and PPG
Industries, whereas SABIC Innovative Plastics
will supply thermoplastic resins to AZDEL and will continue to
work with AZDEL through a joint development agreement to bring
new innovative products to the industry. In the same way, PPG will
continue to supply fiberglass reinforcement materials to AZDEL under a
long-term supply agreement.
Hanwha and AZDEL are complementary, bringing a variety of
different products and technology to the combined business. “We are very excited to be part of
Hanwha, which already offers a broad range of technologies and
services to the transportation and industrial segments. Hanwha is
a good strategic fit for AZDEL and our expertise is an excellent
foundation for further growth in the composites sector,” said Cook. "Our customers
will benefit greatly from the global presence and the R&D
resources that Hanwha brings to the table.”
Hanwha L&C Corporation was represented by Takenaka Partners
LLC as the advisor.