Corporate News     22-Sep-09
Chemplast Sanmar sets up greenfield PVC plant at Cuddalore
At an investment of Rs 600 crore
Chemplast Sanmar, the flagship company of the Sanmar Group is a major player in the chemical industry in the State of Tamil Nadu. The company has set up a Greenfield 170,000 tonnes per annum PVC plant at SIPCOT Phase II in Semmankuppam, Cuddalore at an investment of Rs 600 crore. This is the only chemical project of such large scale that has come up in Tamil Nadu in the last 15 years. Together with the already existing capacity of 65,000 tonnes per annum at Mettur Dam, the total aggregate PVC capacity of the company now stands at 2,35,000 tonnes per annum, placing the company as one of the large PVC player in India.

State Industrial Promotion Corporation of Tamil Nadu (SIPCOT) has allotted 69.5 acres of land in their SIPCOT Industrial Phase II area in Sernmankuppam, Cuddalore on which the PVC plant has been set up. Vinyl Chloride Monomer (VCM), the raw material will be imported for producing PVC in the plant. Chemplast is one of the countrys leading chemical companies, manufacturing PVC using VCM for over four decades at Mettur. There are companies like DCW in Tuticorin, Reliance, Finolex etc., which also import and use VCM for manufacture of PVC. Chemplast Sanmar has constructed a Marine Terminal Facility (MTF) on the sea front near Chitrapettai village, Cuddalore, for facilitating the import of VCM. Tamil Nadu Maritime Board has also allocated an area of 7.56 acres on the sea front near Chitrapettai village on which the Port office and other infrastructure facilities have been set up. The imported raw material is being pumped from the berthed ships through sub-sea / land pipelines to the PVC plant.

The MTF is connected to the VCM storage tanks located in the plant area by sophisticated 'Pipe-in-Pipe' pipeline with attendant safety features, running a distance about 3.5 km (1 km under the sea and 2.5 km in the land area) including the crossing of Uppanar river. The material used for the pipe can withstand much higher pressures when ship unloading occurs. It is also suitably protected externally. There is thus enhanced safety to totally avoid any leakage. The pipeline in the land area is located in a corridor of approximately 30 meters width and is buried under the ground by 10 feet in concrete trenches. The company had shared the technical features of the project with various responsible bodies of the Government including the Tamil Nadu Pollution Control Board, The Ministry of Environment and Forests, New Delhi, The National Safety for Ports Committees, DC Shipping, etc. These agencies have scrutinized the project information and upon being satisfied about the inherent safety and environmental protection of the plant, have issued the necessary clearances. Chemplast Sanmar is grateful to the Government of Tamil Nadu, without whose support and guidance, the project could not have been completed.

The company made this announcement before the trading hours today, 22 September 2009.

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