South Korea’s LG Chem is studying whether to build a vinyl chloride monomer plant in China to complement its proposed ethylene dichloride plant in Australia, a company source has said. The VCM plant in China would be a primary outlet for the EDC produced in Australia. LG and Australia’s Cheetham Salt Ltd are to build a 300,000 mt/yr EDC joint venture plant at Gladstone in Queensland, to be on line by late 2005. The plant would also produce caustic soda as a by-product. The EDC plant is to source all its feedstock locally. LG and Cheetham decided to locate the plant at Gladstone due to the availability of cheap electricity and proximity to two large caustic soda consumers, namely Queensland Alumina and Comalco Alumina. LG is to have a 55% share in the USD 200 million EDC and caustic soda joint venture plant at Gladstone, and Cheetham Salt Ltd a 35% stake. The firms are seeking a third party to take up the remaining 15% share in the project.
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