Gatchalian-led Mabuhay Vinyl gets BOI incentives

Gatchalian-led Mabuhay Vinyl Corp. (MVC), manufacturer of hydrochloric acid and sodium hypochloride, has been given incentives by the Board of Investments (BOI) for its P565-million expansion project in Iligan City.

The listed company is the only manufacturer of caustic soda and liquid chlorine in the country.

Caustic soda is used as a raw material in the manufacture of soaps, detergents, textiles and paper. It is also used in water softening and treatment, refining petroleum products, and washing beer and softdrink bottles while liquid chlorine is used as a bleaching agent by paper and textile industries, drinking water purification, and water treatment.

The steady increase in the price of caustic soda in the international market has prompted MVC to embark on an expansion project. The Phase 2 project of MVC is expected to produce 24,000 metric tons per year of caustic soda, 50,000 metric per ton of hydrochloric acid and 5,500 metric per ton per year of liquid chlorine.

The Phase 2 will be ready for commercial operation on June 2008 and is expected to generate almost 200 new jobs. The project, classified as pioneer based on the magnitude of investments, is registered as an expanding producer.

The project is under the Department of Trade and Industry’s (DTI) retention, expansion and diversification (R.E.D.) program, an inclusion in the 2006 Investment Priorities Plan. The RED program refers to activities of existing investors that are encouraged for retention, expansion and diversification.

The project is expected to help meet the increasing domestic demand for chlor-alkali chemicals in the country.

The approved project involves the use of the modern ion exchange membrane (IEM) technology, n-BiTAC, which was co-developed by Chlorine Engineers Corp., and Tosoh Corp. of Japan.

The new technology involves the use of ultra low power, slat and steam consumption which will help reduce cost making the plant more competitive. Also, the IEM process was rated to be at par with the best technologies in the world.

MVC manufactures and distributes basic and intermediate chemicals and has more than 40 years of experience in the business of chemical production.

MVC is the biggest domestic producer of caustic soda, and together with its subsidiary, Philippine Resins Industries Inc., is the biggest domestic producer of PVC resins. It also enjoys a dominant position in the local hydrochloric acid and chlorine markets.

The company produces four basic and intermediate chemicals with a wide range of industrial and household applications. Included within the chlor-alkali group of products are the following: caustic soda; hydrochloric acid; liquid chlorine; sodium hypochlorite.