Chemplast Sanmar operated its 65,000 ton PVC plant below full capacity last year, producing 10,000 tons of PVC resin. This shortfall in production was caused by unavailability of ethylene di chloride (EDC), a key raw material. The company is currently adding 2,00,000 tons to its existing capacity, expected to go onstream in June 2008. This expansion makes it inevitable for the company to ensure availability of raw materials at all times, for which few plans are on the cards.
The company's recently-commissioned jetty at Karaikal would enable the company to import ethylene and convert it into EDC. Typically, the price difference between imported EDC and that produced from imported ethylene works out to around US$150/ton, leading to a saving of around Rs 50 crore.