MEXICO CITY — Mexican PVC and specialty chemicals maker Mexichem SAB de CV is increasing the capacity of its PVC paste-producing subsidiary Vestolit GmbH & Co. KG in Germany by 40,000 metric tons a year, it said May 29.
In a news release Tlalnepantla-based Mexichem said the investment will turn the Vestolit facility in Marl into “the largest single site for emulsion PVC.” Current production in Marl is 400,000 metric tons a year, according to Vestolit.
Mexichem said it will add a new production line, combining established polymerization technology with newly developed energy-efficient drying technology. But it did not say how much it is spending in the expansion. The company did not reply immediately to questions.
The investment will strengthen Vestolit's market position in ultra-low viscous PVC, Michael Träger, Vestolit's CEO, said.
Carlos Manrique, president of Mexichem Chlorine-Vinyl chain, which oversees Vestolit's operations, said the investment is part of Mexichem's global strategy to expand its asset base and focus on specialty products.
Mexichem agreed to buy Vestolit from investment company Strategic Value Partners (SVP Global) for 219 million euros in August. The European Commission approved the deal in November.
According to Mexichem's news release, Vestolit is Europe's only manufacturer of high-impact suspension PVC (HIS-PVC) for weather-resistant windows and is Europe's second-largest producer of PVC paste for floors and wallpapers, among others.