Kem One and Chemplast Sanmar in Indian PVC JV

Kem One, a former subsidiary of French chemicals group Arkema, is to form a polyvinyl chloride (PVC) joint venture with Chemplast Sanmar, boosting its footprint in the fast-growing Indian market. The companies will each take a 50% share in the new company called Kem One Chemplast and will jointly invest in a new chlorinated PVC plant (CPVC) using technology from Kem One.

The facility, which will cost an estimated $48 million, will be built at Karaikal, Puducherry, India, and will produce 22,000 t/y of CPVC resins, as well as some CPVC compounds. Kem One said approvals for the project are currently being obtained.

Demand for CPVC, which is used mainly to produce pipes and fittings for water supply, is expanding significantly and will continue to grow rapidly in India, the French vinyls company said. The new plant will provide a domestic source of supply for Indian customers that currently rely on imports.

According to chemical information provider ICIS, Indian PVC imports grew by nearly 16% in the 2015-2016 fiscal year to nearly 1.6 million t, surpassing domestic production and accounting for more than half of the country’s demand which was 2.7 million t.