With a view to using hydrogen chloride generated out of the pyrolysis of ethylene dichloride (EDC) in the manufacture of PVC, Chemplast plans to install an oxychlorination facility at Mettur at an estimated cost of Rs.25 crore. This would give Chemplast a cost advantage in manufacture of EDC and consequently PVC and this process change will further enhance the company’s ability to better manage environment issues.
As a part of this investment, the company has negotiated to buy the existing oxychlorination plant from National Organic Chemical Industries Limited (NOCIL) which is not in use now. The company has already entered into an agreement with NOCIL for this purpose. Chemplast will dismantle NOCIL’s oxychlorination plant presently located at Thane, Mumbai and install it at its Mettur factory.
The project envisages further investments on an ethylene purification system, nitrogen and refrigerant packages and other utilities. The project, expected to be commissioned in about fifteen months’ time, will enhance Chemplast’s competitive positioning in addition to its environment and cost advantages.