A Future without Chlorine? Industry Between Hope and Trepidation

Related Vendors

Glatt Ingenieurtechnik GmbH

Pörner Ingenieurgesellschaft mbH

ProMinent GmbH

Euro Chlor

CEFIC European Chemical Industry Council

Of Winners and Losers

Given the overcapacity in the industry and the comparable low production margins, it is questionable whether all of these plants will be converted. Can we expect to see a major shake-out? The insolvency of Kem One in early 2013 France may be an early sign of things to come. The French based PVC producer had to file for bankruptcy after splitting its up- and downstream operations. The firm is now, however, back in business under a new ownership of industrialist Alain Krassny and US private equity group Open Gate.

The Chlorine Race is on!

The battle for pole position is intensifying, particularly now that Ineos and Solvay have formed a chlorovinyls joint venture. This transaction between giants carried a substantial price tag – namely the divestiture of six production sites in a so called 'remedy package' – but the new joint venture is a global heavyweight which has many production assets favourably placed throughout Europe. Too many cooks can spoil the soup, but a master chef may now be in charge. Together, Ineos and Solvay could account for half of the European PVC business by 2018, thus also dominating much of the continent's chlorine production.

Are “grow or die” really the only two alternatives? Euro Chlor Chairman Steel rejects that argument. His approach is to encourage the association’s members in their efforts to boost efficiency. To do that however, the industry needs new ideas, innovate strengths, a dependable political framework and affordable energy costs

* The author is editor at PROCESS.

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