Global chlorine capacity is poised to see considerable growth over the next five years, potentially increasing from 83.03 million tonnes per annum (mtpa) in 2018 to 87.04 mtpa in 2023, registering a total growth of 5%, says GlobalData, a leading data and analytics company.
The company’s report, ‘Global Chlorine Industry Outlook to 2023 – Capacity and Capital Expenditure Forecasts with Details of All Active and Planned Plants’ reveals that around 39 planned and announced plants are scheduled to come online, predominantly in Asia and Europe, over the next five years.
Chlorine capacity in Asia is expected to increase from 48.35 mtpa in 2018 to 51.29 mtpa in 2023, at an average annual growth rate (AAGR) of 1.2%. Among the countries in the region, China will add capacity of around 1.34 mtpa by 2023. Major capacity addition will be from the plants, Xinjiang Zhongtai Chemical Company Urumqi Chlorine Plant and Hubei Yihua Chemical Industry Xinjiang Chlorine Plant, with a capacity of 0.98 mtpa and 0.89 mtpa, respectively by 2023.
Vinuthna Bidar, Oil and Gas Analyst at GlobalData, says: “In terms of number of projects, of the 39 planned and announced projects globally, Asia accounts for more than half of the number, with 23 planned and announced projects. With growing economies such as China and India, the region is expected to add major capacity additions of 2.43 mtpa. Together, China and India are accounting for more than 80% of Asia’s chlorine capacity additions.”
GlobalData identifies North America as the second highest in terms of chlorine capacity addition in the global chlorine industry. It is expected to increase from 14.62 mtpa in 2018 to 15.21 mtpa in 2023, at an AAGR of 0.8%. Most chlorine capacity additions are from the US, with capacity of around 0.59 mtpa by 2023. Major capacity addition will be from the plant, Westlake Chemical Corporation Lake Charles Chlorine Plant, with a capacity of 1.27 mtpa by 2023.
Within Europe, chlorine capacity is expected to increase from 12.21 mtpa in 2018 to 12.42 mtpa in 2023, at an AAGR of 0.4%. Among countries, Spain will add the capacity of 0.16 mtpa by 2023.
The Middle East follows among the global regions in terms of chlorine capacity additions and it is expected to increase from 3.16 mtpa in 2018 to 3.32 mtpa in 2023, at an AAGR of 1.0%. United Arab Emirates leads in the Middle East, contributing around 0.16 mtpa by 2023.
Chlorine capacity in Africa is expected to increase from 0.75 mtpa in 2018 to 0.83 mtpa in 2023, at an AAGR of 2.1%. Egypt is forecast to be the top country in the region with capacity additions of 0.07 mtpa by 2023.
Xinjiang Zhongtai Chemical (Group) Co Ltd, Shin-Etsu Chemical Co Ltd and East Hope Group Co Ltd are the top three companies globally in terms of planned and announced capacity additions over the outlook period.
The report also states that the three highest planned and announced global chlorine capacity addition plants in the outlook period are ‘Xinjiang Zhongtai Chemical Company Baicheng Chlorine Plant’ in China, ‘Shintech Plaquemine Chlorine Plant 2’ in the US, and ‘East Hope Group Shulinzhao Chlorine Plant’ in China with capacities of 0.71 mtpa, 0.59 mtpa and 0.32 mtpa, respectively.