Solvay and Russian partner are studying the feasibility of building PVC complex

Solvay has begun a feasibility study into polyvinyl chloride (PVC) production in Russia, with local joint venture partner Nikos Group. The two firms last year started up a 50:50 PVC compounding operation, called Soligran, with 40 000-45 000 tonne/year of capacity at Tver, 170km north of Moscow.

The study is looking at an integrated complex for ethylene, chlorine and two PVC plants at Volgograd, where Nikos already operates VCM and PVC production. A spokesman for Solvay said the complex could cost €500m and see the first phase, with one 200 000 tonne/year PVC unit, completed by 2008. The second PVC plant could be operational by 2012, he added.

The feasibility study is expected to be complete by the middle of this year. Various aspects are under study, including financing, feedstocks and profitability.

Soligran is currently producing rigid PVC compounds for window profiles and cladding and soft compounds for shoes. It plans to add cable compounds to the mix this year. It was set up in 2003 and originally planned to install compounding capacity at both Tver and Volgograd.

Nikos is a private, diversified financial and industry group and had sales of $200m in 2002. Solvay operates PVC capacity in Europe through Solvin, its 75:25 joint venture with BASF, and has five PVC compounding facilities in Europe as part of its Benvic business unit, in Belgium, Italy, France, Spain and Russia. A fifth unit in Brazil, a joint venture with Dacarto, brings total compounding capacity to 350 000 tonne/year.