Argentina's top PVC producer to expand capacity

By Bob Moser
Correspondent

Published: June 27, 2014 3:04 pm ET
Updated: June 27, 2014 3:10 pm ET

Image By: PVC Tecnocom SA The capacity expansion for PVC Tecnocom SA will turn it into one of South America's two largest producers of PVC compounds.

Related to this story

Topics Materials, Machinery, South America

BUENOS AIRES, ARGENTINA — PVC Tecnocom SA, Argentina’s leading producer of PVC compounds, paneling and tubing, will debut 1,500 metric tons of new monthly production capacity in July, transforming it into one of the continent’s top two producers, the company’s commercial director told Plastics News during Argenplás. Founded in 1978 and based near Buenos Aires, the company generated roughly $100 million in sales in 2013, on par with 2012, via production of about 8.26 million pounds per month from three plants.

Exports total close to 1,000 metric tons per month, focused mainly in the Mercosul region, with Brazil accounting for 700 metric tons of PVC compounds, paneling and tube per month.

PVC Tecnocom’s current total production capacity is 4,000 metric tons per month, but in July the company should debut expansions which push that figure to 5,500 metric tons, making it the second largest producer of PVC compounds in Latin America, behind only Brazil’s Karina Ind. e Com. de Plásticos Ltda, said commercial director Eduardo Estevez.

“We invested roughly $1.8 million last year, and expect this expansion to produce big gains for PVC Tecnocom in the Latin American market,” Estevez said in an interview at Argenplás in Buenos Aires.

The family-owned company is now exploring commercial property options throughout Argentina for the potential purchase and construction of a new mega-plant that could meet or exceed the joint production capacity of all three existing PVC Tecnocom plants, under one roof.

At least 60,000 square meters of space is being sought, and the company has talked with local governments in at least three cities in recent months, said Estevez, who declined to specify locations of interest. If seen through, the project will take at least three to four years, he added, and it’s undecided whether PVC Tecnocom would sell its existing plant properties afterward, or continue operating them in addition to a new plant.

The company will likely need to finance as much as a third of the cost of such an acquisition and construction project, but with Argentinean private banks offering loans with adjustable interest rates of 30 percent or more, PVC Tecnocom will take its time studying all lending options, Estevez said. An international lender or private investment partner could be the best solution, he added.


Comments

Argentina's top PVC producer to expand capacity

By Bob Moser
Correspondent

Published: June 27, 2014 3:04 pm ET
Updated: June 27, 2014 3:10 pm ET

Post Your Comments


Back to story


More stories

Image

Windmöller & Hölscher looking to continued growth in China

July 21, 2014 3:40 pm ET

With 2013 global sales of 600 million euros, China has grown into an important export market for Windmöller & Hölscher KG, second only to the United...    More

Image

Material Insights: PE makers declare force majeure

July 21, 2014 1:53 pm ET

Plus, changes in PET bottle resin price, PolyOne closing facilities and CCP Composites gets bought.    More

Image

'Genericide' and plastic product trademarks

July 21, 2014 10:52 am ET

Covering the plastics industry, we're constantly interviewing sources who talk about products using the trademarked names.    More

China launches investments in Belarus

July 21, 2014 10:10 am ET

China is preparing to invest in a major bottle grade PET production project planned by the Belarus PET and polyester fibers producer...    More

Image

Thermoforming Technology Group adds Lyle Industries to its portfolio

July 18, 2014 2:48 pm ET

Thermoforming Technology Group LLC has expanded its thermoforming equipment presence with the acquisition of Lyle Industries Inc.    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events