Brazil-based Unipar Carbocloro, South America's second-largest producer of polyvinyl chloride (PVC), said it completed a chlorine-soda and derivatives capacity expansion in the third quarter.
With the expansion concluded in July, Unipar's Santo Andre plant in Brazil's Sao Paulo state increased liquid chlorine capacity to 189,000 metric tonnes (t)/yr from 160,000 t/yr. Unipar's caustic soda capacity increased to 213,000 t/yr from 180,000 t/yr, while hydrochloric acid capacity rose to 129,000 t/yr from 37,000 t/yr.
The company's plants average installed production capacity reached 81pc in the third quarter, down from 83pc in the same period of 2022.
During the quarter, Unipar approved a $200mn program to replace mercury and diaphragm technologies with membrane at its Cubatao plant, also in Sao Paulo. The move was aimed at modernizing and streamlining the unit's chlorine/soda production process, focusing on sustainability and efficiency, the company said.
Financial results
Unipar's third quarter profit declined to R191mn ($38.9mn), down from R198mn in the third quarter last year, on lower domestic demand, competition from imports, lower international prices and higher power costs.
Caustic soda prices in the international market fell by 56pc from a year earlier, while PVC dropped by 54pc in the period. The decline in caustic soda prices can be attributed to a drop in international demand throughout 2023, while PVC prices tumbled because of the product's poor demand throughout 2022 and 2023.
Argentina is still facing a severe economic crisis and high inflation, which hampers demand. The country will hold a second round of presidential voting on 19 November.
Unipar's third quarter revenue fell to R1.37bn, with PVC responsible for 47pc of the total, down from R1.94bn a year earlier, when PVC also represented 47pc of the total.
