WASHINGTON, D.C., Sept. 20 -- The International Finance Corporation (IFC) has signed an agreement with Vinythai Public Company Limited to finance a US$506 million poly-vinyl chloride (PVC) facility in Thailand. PVC is a major commodity plastic. IFC's financing consists of two loans for a total of US$45 million, and a third loan of US$70 million, which has been syndicated with participant banks. The syndicated loan was underwritten by four leading international banks -- Generale Bank, Banque Indosuez, Deutsche Bank and Kredietbank -- with an additional seven international banks taking participations. The facility is being built in two phases, both funded by IFC. Phase I was completed in July 1992 and produces PVC from imported vinyl chloride monomer (VCM) with a nameplate capacity of 135,000 metric tonnes per year. Phase II, which consists of a VCM plant and a chlorine plant, is expected to begin production in November 1995. VCM, made from chlorine and ethylene, is used solely in the production of PVC. The fac
ility will meet increased domestic demand for high-quality petrochemicals and will comply with Thailand's environmental standards and stringent World Bank guidelines. PVC consumption in Thailand has grown by 18 percent annually over the past six years. Vinythai's production will primarily serve the country's domestic market. The project sponsors are Solvay S.A. of Belgium, the third-largest PVC producer in the world, and the Charoen Pokphand Group (CP Group), the largest conglomerate in Thailand. "The investment in Vinythai demonstrates IFC's continuing strong support for the development of the petrochemical sector in Thailand," said Mr. Jean-Philippe Halphen, Director of IFC's Chemicals, Petrochemicals, and Fertilizers Department. IFC is a member of the World Bank Group and is the largest multilateral source of equity and loan financing for private sector projects in developing countries.
