Kem One joins hands with Chemplast Sanmar to manufacture chlorinated polyvinyl chloride in India


Kem One partners with Chemplast Sanmar, one of the leading PVC manufacturer in India, within a joint venture. Located in India, the future plant will provide a domestic answer to the increasing demand of chlorinated PVC, highly prized in the building sector.

Kem One and Chemplast Sanmar have signed an agreement to establish Kem One Chemplast, a 50:50 joint venture to manufacture chlorinated polyvinyl chloride (CPVC). The new facility, for which approvals are in the process of being obtained, will come up at a coastal location at Karaikal, Puducherry, India. The project which is being set up at an estimated cost of Rs. 325 crores (about 48 MUSD) will have technology from Kem One and a capacity of 22,000 TPA of CPVC resins.  It will also manufacture CPVC compounds.

Kem One is the second largest producer of PVC in Europe. Mainly located in France, it has 1300 employees and an annual turnover of € 800 million. Its eight industrial sites manufacture a wide range of PVC resins, caustic soda and chlorine derivatives.

It builds on its knowledge of chlorochemicals and vinyl products inherited from a century-old history. By starting CPVC resins and compounds production in the 70’s in Europe Kem One has a strong expertise in CPVC industrial process. With this partnership with Chemplast Sanmar, Kem One is expanding its footprint in the fast growing Indian market.

Chemplast Sanmar, which will celebrate its Golden Jubilee in May 2017, is the flagship company of The Sanmar Group. It is a major manufacturer of PVC (polyvinylchloride) resins, caustic soda, chloromethanes, refrigerant gas and industrial salt. The addition of CPVC (a special type of PVC with added chlorine) would add to its already strong position in the Indian chemicals industry.

The Sanmar Group, of which Chemplast  Sanmar is a constituent, has had a record number of  joint-ventures in India. Its track record in joint-venture management has been among the best in the country.  Some of these partnerships, which were established over 40 years ago, are still running successfully. The long lasting success of these joint-ventures reflects Sanmar’s avowed commitment to protecting its partners' interests in all aspects. Kem One Chemplast will be another addition to this list of successful joint-ventures.

CPVC is mainly used as a raw material to produce pipes and fittings for supplying water which requires heat resistance, pressure resistance and high tolerance for water treatment.

In recent years, there is a switch from metal to CPVC in pipes used in buildings in India, and in parallel, overall construction demand has also been witnessed. CPVC can also be used for industrial applications which require a high level of chemical resistance and for sprinklers. The demand for CPVC is expanding significantly and will continue to grow rapidly in India. The manufacturing joint venture company will thus provide the domestic answer to the Indian customers’ needs that is currently being met through imports.

The establishment of the manufacturing joint venture company mentioned above as Kem One Chemplast will be subject to approval from the competent authorities.


Kem One joins hands with Chemplast Sanmar 28/02/17 - Document msword