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
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
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
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.