Chemplast Sanmar forms JV with France-based Kem One for chlorinated PVC

JV will invest Rs 325 crore to set up a chlorinated polyvinyl chloride (CPVC) plant in Puducherry

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Chemplast Sanmar facility

Rakesh Rao Mumbai

Last Updated : Mar 06 2017 | 4:06 PM IST

Chennai-based Chemplast Sanmar, one of the leading polyvinyl chloride (PVC) manufacturer in India, has formed a joint venture with French fim Kem One to set up a manufacturing facility for chlorinated polyvinyl chloride (CPVC) in Puducherry. With the JV, to be called Kem One Chemplast, will meet the growing demand for CPVC, a widely used material in building and construction sector, in the country.

The new facility, for which approvals are in the process of being obtained, will come up at Karaikal, Puducherry. 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 tonne per annum (TPA) of CPVC resins. It will also manufacture CPVC compounds.

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.

Kem One is the second largest producer of PVC in Europe. Mainly located in France, it has 1300 employees and an annual turnover of € 800 million. Its eight industrial sites manufacture a wide range of PVC resins, caustic soda and chlorine derivatives. By starting CPVC resins and compounds production in the 70’s in Europe Kem One 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, the flagship company of the Sanmar Group, 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.