TCI Sanmar

Sep 20, 2011 (AsiaPulse via COMTEX)      History

India's Sanmar Group to invest US$1.3bn for expansion in Egypt

Indian chemicals maker TCI Sanmar will invest US$1.3 billion to produce 275,000tonnes of caustic soda annually, and 400 thousand tonnes of poly vinyl chloride (PVC) at its plant in Egypt, India's Ambassador to Egypt says.

ソーダ能力で 2.75 lakhとの記載 275千トン

"The Indian company will implement an integrated project to produce 2,75,000 tonnes of this solid (caustic soda) annually and 400thousand tonnes of PVC in Port Said Governorate at a total investment of US$1.3 billion," Indian Ambassador to Egypt R Swaminathan said in a statement.

TCI Sanmar, the Chennai-based Sanmar Group's Egyptian arm, is the biggest caustic soda producer in Egypt, he added.

Swaminathan noted that Egypt, after the January 25 revolution, has emerged as an investment destination and a safe haven for many investors and countries.

"Some Indian companies plan to expand their investment in Egypt in the chemicals domain in the period to come," he said.

Sanmar Group had acquired Trust Chemical Industries LLC (now TCI Sanmar Chemicals SAE) in South Port Said, Egypt, in March 2007.

The plant has production facilities for the manufacture of caustic soda, chlorine and hydrogen.

The Sanmar Group is a leading manufacturer of PVC resins, caustic soda, chlorochemicals, refrigerant gas, industrial salt and PVC piping systems.

Chemplast Sanmar 
over forty years old and the flagship company of The Sanmar Group—is a major manufacturer of PVC resins, Caustic Soda, Chlorochemicals, Refrigerant gas, Industrial Salt and PVC piping systems.
The manufacturing facilities are located at Mettur, Panruti, Cuddalore, Vedaranyam and Ponneri in Tamil Nadu, Shinoli in Maharashtra, and Karaikal in the Union Territory of Puducherry.

Greenfield Project At Cuddalore : The recent commissioning of a greenfield PVC project at Cuddalore, Tamil Nadu, has been a major step forward for the Group. The facility commissioned in September 2009 has an annual capacity of 170,000 tons, the largest chemical project to come up in the state of Tamil Nadu for well over a decade. Chemplast Sanmar’s aggregate capacity of 235,000 tons makes it one of the largest PVC players in India.

At Chemplast, integration—forward and backward—is the key. The basic feedstock for its PVC plant at Mettur, alcohol and chlorine, come from its industrial alcohol plant at Panruti and its own chloralkali facilities at Mettur and Karaikal.

The Chlorochemicals Division of Chemplast, itself the result of backward integration by the Group, manufactures a wide range of products using a highly integrated manufacturing process. These downstream products are either chlorine derivatives or chlorine users in the production process.

The salt needed for chlorine manufacture is supplied by salt fields Chemplast owns at Vedaranyam. The power-intensive electrolysis process of manufacturing chlorine is served by Chemplast’s own power plant.

Chemplast Sanmar has re-entered the PVC pipes business it exited decades ago, through the acquisition of Trubore Piping Systems at Ponneri, near Chennai. After the addition of a greenfield pipes facility at Shinoli, Maharashtra, its capacity rose to 56,000 tpa of a wide range of pipes that includes pressure pipes, casing and screen pipes, SWR pipes, plumbing pipes and conduits. The business is supported by a strong sales team and a well distributed dealership network spread across numerous states.

All this makes Chemplast one of the most integrated chemical plants in the country with a closed manufacturing loop. Its product range falls into six distinct Groups — PVC Resins, Caustic Soda / Chlorine, Chlorinated Solvents, Refrigerant Gases, Silicon Wafers and Trubore Piping Systems.

Chemplast has thus played a pioneering role in the field through its ingenious choice of feedstock and manufacturing processes, and efficient, eco-friendly practices. Its constant development of environment-friendly production processes has reduced the consumption of valuable natural resources.

The Sanmar Group acquired Trust Chemical Industries LLC (now TCI Sanmar Chemicals S.A.E.), in South Port Said, Egypt, in March 2007 (for $275 million), committing substantial resources to expand its operations in the vinyl chain.
It provides the Group’s chemicals business a unique combination of scale, vertical integration and global presence.
Situated at the mouth of the Suez Canal, TCI Sanmar fits neatly into the Group’s chemicals business.
The modern plant has production facilities for the manufacture of caustic soda, chlorine and hydrogen and uses environment-friendly membrane cell technology in the production process.
The prospects for scale-up at TCI Sanmar are extremely positive with projects planned for integrated production facilities to manufacture PVC. The State of art plant's location – only three km from the mouth of the Suez Canal at the tip of the Mediterranean Sea – is a distinctive advantage as it facilitates easy passage of goods. The Group's experience in integrated chemical operation will facilitate successful commissioning and operation of PVC manufacturing facilities in Port Said, Egypt.

TCI Sanmar is the largest producer of Caustic Soda in Egypt. The 7% growth per annum in the demand for PVC provides an excellent opportunity to cater to Egypt's domestic market besides exporting PVC to the attractive neighbouring markets.

With the combined capacities of the Indian and Egyptian facilities, the Sanmar Group will be among the largest 10 producers of PVC in the world.

TCI's plant at Port Said will produce 275,000 tonnes of caustic soda, and 235,000 tonnes of chlorine. The chlorine will be used to produce 400,000 tonnes of Vinyl Chloride Monomer, feedstock for PVC that Chemplast produces.

Half the production of VCM is to be brought to Cuddalore, where Chemplast is putting up a Rs 520-crore, 200,000-tonne PVC plant.    170,000 tonsが正しい。



Trust Chemical Industries purchases PVC and VCM facilities

Trust Chemical Industries (TCI) signed an agreement with Solvin to purchase the 180 KT/Year PVC and 160 KT/year VCM facilities for relocation from Ludwigshafen, Germany to Port Said, Egypt. TCI has a caustic soda plant based on membrane technology with a capacity of 200,000 tonnes per annum, which started operations a little over a year ago and are now putting up EDC, VCM and PVC manufacturing plants at the same location. The sales and Purchase agreement was facilitated by Industrial Asset Management, a US company in the business of trading in used process plants. IAM was hired by Solvin to locate a buyer for these plants which were shut down in December 2005.

Solvin decided to close down their manufacturing facilities in December 2005 and appointed Industrial Asset Management LLC,a US company to locate a buyer for the plants for relocation to another part of the world. TCI from Egypt has signed a purchase agreement with Solvin on March 7,2007 at Ludwigshafen, Germany.

Chemplast Sanmar is acquiring the entire chemicals business of TCI from Mr. Ismail M. Ismail who presently owns 100% of the company. This acquisition is a strategic move for Chemplast for assured and cost-effective raw material supplies to its Indian operations.

TCI Sanmar Chemicals LLC (now TCI Sanmar Chemicals S.A.E) came into the Sanmar fold in March 2007 as Trust Chemical Industries, a caustic soda manufacturing facility located at Port Said, Egypt. Following the acquisition, Sanmar embarked on an ambitious capacity enhancements for caustic soda, chlorine, VCM and PVC for an investment commitment of US$886 million.