(Yicai Global) Sept. 6 -- Zhongtai Chemical Co., a major Chinese chloralkali chemical maker, has partnered up with Jinhui Zhaofeng Energy to build a million-ton polyvinyl chloride plant in Baicheng county, Xinjiang Autonomous Region.
The two Xinjiang-based firms penned a letter of intent yesterday, Zhongtai said in a statement the same day. The pair will negotiate specific contract details, such as when to start work and how much each will invest in the factory, after carrying out due diligence and a feasibility analysis, the statement added.
There are abundant coal, salt and limestone resources in Baicheng, Zhongtai said. This will enable the two firms to produce a million tons of PVC, 1.5 million tons of calcium carbide and 800,000 tons of caustic soda each year, the firm added, saying it will also make coke, cement and liquefied natural gas.
Zhongtai has already built plants to produce 1.3 million tons of coke, a million tons of cement, 1.8 million tons of coal and 88,000 tons of LNG, the statement said.
PVC is the second-most common general-purpose plastic behind polyethylene, which is used in pipes, bottles and plastic bags. More than 80 percent of China-made PVC is done so using calcium carbide, which is created from a mixture of lime and coke. By partnering up, the firms believe they can leverage their respective strengths to develop the domestic chloralkali industry while enhancing their own bottom line.
Editor: James Boynton