Xinjiang Tianye (Group) Co. Ltd., one of China's largest plastic processors that also has a vertically integrated business structure, is beefing up PVC production.
In addition to its existing annual capacity of 705.5 million pounds, the firm is finishing up a project to add another 882 million pounds to be available by midyear, said a Xinjiang Tianye spokeswoman at APPLAS, held Nov. 29 to Dec. 2 in Shanghai.
The Shihezi-based company makes coal-based PVC via calcium carbide and acetylene.
``At least two-thirds of the PVC produced in China is based on coal,'' the spokeswoman said. ``That's why coal-based PVC gets to set the market price.''
The firm also processes about 265 million pounds of resin annually to manufacture plastic products, mostly irrigation equipment. To take advantage of its increasing PVC production capacity, it also has begun trial production of PVC profiles.
Xinjiang Tianye is listed on the Shanghai Stock Exchange through its subsidiary, Xinjiang Tianye Holdings Co. Ltd., which reported sales of 2.8 billion yuan ($379 million) and net profit of 227 million yuan ($30.7 million) in the first nine months of this year.
The coal-based PVC overcapacity in China apparently has not affected Xinjiang Tianye's margins. The Chinese government is enforcing regulations to force smaller, less-efficient firms that are heavy polluters out of the market.
Xinjiang Tianye is leading the industry in reducing and recycling exhaust. It also is implementing a dry-process technology to make acetylene from calcium carbide. Compared with the more mature hydro-process technology, the dry process requires less water, which is scarce in Xinjiang, an area of rugged mountains and desert basins.
``The dry process reduced the use of water by 80 percent,'' the company said.