Asia is set to lead the global vinyl chloride monomer (VCM) industry capacity additions with a share of 84% by 2027, by gaining capacities from new-build and expansion projects between 2023 and 2027, according to GlobalData, the data and analytics company.
GlobalData’s latest report, Vinyl Chloride Monomer (VCM) Industry Installed Capacity and Capital Expenditure (CapEx) Market Forecast by Region and Countries Including Details of All Active, Planned and Announced Projects to 2027, shows that the total VCM capacity of new-build and expansion projects in Asia is expected to be 4.86 million tonnes per annum (mtpa) by 2027. The high demand for VCM in sectors, including the construction industry, is a key factor for the growth of the VCM industry in Asia.
Nivedita Roy, Oil and Gas Analyst at GlobalData, comments: “For the upcoming new build projects, the region is expected to add a capacity of 4.11mtpa from four planned projects, whereas, for the expansion of the existing VCM projects, the region is expected to add a capacity of 0.76mtpa from four planned and announced projects.”
India and China are the key countries in Asia in terms of VCM capacity additions. The main capacity addition in India will be from a planned project, Mundra Petrochem Mundra Vinyl Chloride Monomer (VCM) Plant with a capacity of 2mtpa. It is expected to commence production of VCM in 2026.
Nivedita concludes: “In China, the capacity contribution will be from a planned project, Shenhua Yulin Vinyl Chloride Monomer (VCM) Plant, with a capacity of 0.51mtpa. It is expected to come online in 2023.”