ZAT chemicals not to go ahead with building PVC plant

One of the country's largest chemical plants, Zaklady Azotowe Tarnow (ZAT) will not go ahead with the construction of a polyvinyl chloride (PVC) plant, which is one of the basic products of the firm. "The reason for the decision lies in the failure of a 10-year contract for the supply of vinyl chloride used for the production of polyvinyl chloride from Oriana of Ukraine which is part of the Russian concern Lukoil." an informer wishing to remain anonymous told Puls Biznesu. Vinyl chlorine supplied from Oriana did not meet appropriate quality requirements and ZAT was forced to buy the material abroad at a very high price. "So now ZAT is buying the vinyl chloride at a higher price from the one at which it can sell already produced polyvinyl chloride." adds the informer. To make the situation worse the plant has already spent over zl. 40 million on the construction of the facility at the Tarnow plant which was supposed to be completed in two to two and a half years, after which ZAT would have been able to produce 100,000 tons of polyvinyl chloride annually. (Puls Biznesu, p. 5) A.Z.