AGC to Expand Vinyl Chloride Monomer Capacity for PVC Production

EXTON, Pa., May 17, 2016 – AGC Asahi Glass (AGC), one of the world-leading manufacturers of glass, chemicals and high-tech materials, announces that it has decided to further increase the production capacity of vinyl chloride monomer (VCM) at P.T. Asahimas Chemcal (ASC), one of its consolidated subsidiaries in Indonesia. ASC has recently completed facility enhancement, which includes the capacity increase of VCM production to 800,000 tons from 400,000 tons, and the new production facilites started operations in the first quarter of 2016. As an additional capacity enhancement measure, ADC will increase its VCM production capacity to 900,000 tons in 2018 through the debottlenecking and productivity improvement in existing facilities.

VCM is used mainly as a raw material for the production of polyvinyl chloride (PVC). The PVC market in Southeast Asia continues to demonstrate an annual growth rate of around 5%, and remains favorable particularly in businesses related to infastructure development. Under such circumstances, the demand for VCM exceeds the supply in the region. Following the facility enhancement completed recenlty, AGC has decided to further increase the production capacity of VCM to 9000,000 tons in an effort to respond to the brisk demand in the Southeast Asia. The volume increase from the two-phased capacity enhancement will be allocated for the exports to Phu My Plastic and Chemical CO., which is AGC’s consolidated subsidiary in Vietnam, and other customers in Southeast Asian countries, as well as for the domestic PVC prodcution at ASC.

Under the management policy AGC plu, the AGC Group has set a priority on its Chlor-Alkali and PVC business in Southeast Asia. In Order to enhance its competitveness in the reion and increase the makert share in Southeast Asia, the AGC Group will proactively take measures for capacity increase that come in line with the supply and demand situatio in the region.