Lubrizol is planning a four-year, $400 million (MM) global expansion of its chlorinated polyvinyl chloride (CPVC) resin and compounding manufacturing sites. The company says that the expansion efforts will provide it the necessary manufacturing capabilities to readily supply global demand while positioning its CPVC business for future growth.
With continued strong global demand for the companys CPVC compounds, Lubrizols expansion efforts will be divided into two phases. Phase 1 is scheduled to be operational by the end of 2014, with a total capacity of 85,000 metric tons of CPVC resin and 100,000 metric tons of CPVC compound. Total investment for Phase 1 is estimated at approximately $200 MM.
Phase 1 includes the previously announced construction of a new CPVC resin and compounding facility in the US. Initial resin capacity will be 55,000 metric tons, and compound capacity will be 65,000 metric tons, with a total investment of $125 MM.
This phase will also see Lubrizol build a new CPVC compounding plant and warehouse in India. The $40 MM total investment for this project includes an initial capacity of 35,000 metric tons. The sites that are under final consideration are located in Gujarat and Maharashtra.
The final plank of Phase 1 is a previously announced joint investment in a CPVC resin manufacturing facility in Thailand. Initial capacity will be 30,000 metric tons, with a total investment of $50 MM, subject to receipt of all necessary government approvals.
Phase 2 is targeted to be operational by the end of 2016. It will add 85,000 metric tons of CPVC resin and 100,000 metric tons of CPVC compound, with total additional investment of approximately $200 MM. Phase 2 will also include the consideration of sites in the US and India that would allow for an additional 55,000 metric tons of resin capacity and 65,000 metric tons of compound capacity.
Another part of Phase 2 would be the expansion of the Phase 1 India compounding plant, adding 35,000 metric tons of capacity. Total additional investment for this action would be $15 MM. Phase 2 will also see the expansion of the Phase 1 joint investment plant in Thailand, adding 30,000 metric tons of resin capacity. The total additional investment is estimated to be $50 MM.