Global speciality chemicals major Lubrizol Corporation’s CPVC compounding plant at Dahej in Gujarat will begin production from tomorrow (Friday), the company announced here on Thursday.

This will be the company’s first world-class plant to manufacture chlorinated polyvinyl chloride (CPVC) compounding plant. Ground breaking ceremony for this plant was held in 2014.

With a capacity to manufacture nearly 55,000 tonnes of compounds annually, the company has invested over $50 million (Rs.325 crore) on this facility, located in a 100,000 sq.m. area in the chemical park complex of Gujarat Industrial Development Corporation (GIDC), Eric Schnur, President, Lubrizol Advanced Materials, said here.

This is part of the $200 million (Rs.1,300 crore) investment announced by Lubrizol in 2013, which included the opening up of a resin manufacturing plant at Rayong, Thailand and an expansion facility at Louisville, Kentucky, USA, he said.

Manoj Dhar, Head, TempRite Engineered Polymers, South Asia, said the CPVC market size in India is nearly 85,000 to 90,000 tonnes annually, worth $200 million. Lubrizol is a market leader in this segment.