Spanish chemical company Ercros is spending nearly €54 million to expand membrane chlorine capacity and replace its older mercury cell production. Between 2016 and 2017, Ercros will raise chlorine membrane capacity at Vilaseca, Spain, by 30,000 t/y and also increase capacity for sodium hypochlorite and hydrochloric acid. At the same time, a new plant with a chlorine capacity of 15,000 t/y will be constructed at Sabinanigo.

The company will also improve power reliability at Vilaseca and replace and update the existing caustic soda concentration unit and one PVC reactor. A longer term plan for the period 2018-2020 involves the expansion of trichloroisocyanuric acid (TCCA) capacity at Sabinanigo in addition to increasing production of pentaerythritol and molding compounds at Tortosa and Cerdanyola.

Ercros announced a major cutback in chloralkali capacity in January 2016 as a result of Covestro’s intention to close its MDI plant in Tarragona, Spain, by the end of 2017. Covestro is the largest consumer of chlorine from the Vilaseca plant. The new membrane production will partially replace the reductions outlined at that time.

“The new Ercros that will emerge will have a more balanced portfolio of customer-oriented products with higher added value,” Ercros said in a statement. It added that reduced dependence on electricity and chlorine-related products would reduce the current cyclicality of its EBITDA.

The investments will be 78% financed by cash flow and 22% by debt. Under EU legislation, mercury-based chloralkali production will be banned from November 2017.