Gita Holdings, the Swiss-based fund that has agreed to buy polyvinyl chloride producer Vinyls Italia, plans to increase production capacities and modernize facilities at two of the Italian company's sites, as per Platts. Gita will invest at least € 300 million (US$406 mln) to increase combined PVC capacity at Porto Marghera and Porto Torres to 475,000 tpa with chlorine capacity rising to 360,000 tpa, caustic soda capacity to 395,000 tpa and ethylene dichloride capacity to 500,000 tpa in the next 6 years. The Swiss fund has agreed to buy and restart Vinyls Italia assets at Porto Marghera, Porto Torres and Ravenna, all of which were halted in May 2009 when the company went into liquidation. The assets are owned by Italian oil major Eni and its chemical subsidiary Syndial. Gita, which will form an Italian-based company to manage the operation, could not be reached for comment.
The company is targeting an increased PVC production capacity of 475,000 tpa at the two sites, up from an existing capacity of 265,000 tpa. It will also modernize the chlor-alkali plant at Porto Marghera to more efficient and EU-compliant membrane technology, at the time increasing output to 160,000 tpa from 140,000 tpar. It also intends to increase vinyl chloride monomer production at Porto Torres. No modernization plans for Ravenna were outlined. The company and unions have a timetable of between two and four months for restarting production at the sites. Production of PVC and other petrochemicals would be adjusted to market needs.
With the construction sector at a low ebb due to the economic cycle as well as the seasonal winter downturn, PVC producers have been looking to increase prices this month to stave off negative margins caused by large contract price increases for ethylene.
25-Jan-11 
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