The leaders of the National Society of Electrolysis and Petrochemistry (SNEP) rub their hands. Benefiting from a positive growth in infrastructure projects and mining activities, the only producer of liquefied chlorine or PVC resin in Morocco confirmed in 2018 its operational performance on vinyl activity.
The subsidiary of Ynna Holding posted a turnover of MAD 585.1 million, up 2.8%. The electrolysis business, segment on which the company achieved a turnover of MAD 346.3 million, appreciated by 13.8%. The dynamic has had the effect of generating sales growth of 6.8%, amounting to 935.5 million dirhams.
“The favorable development of the regulation on anti-dumping measures on PVC imports combined with the dynamism of the sector in 2018 confirms us in the deployment of our development strategy”, explains Rachid Mohammadi, CEO of the main producer of products derived from the electrolysis in Morocco, during the presentation of the results.
The group claims a 65% market share of electrolysis products (chlorine, bleach, soda, hydrochloric acid) in front of imports that capture 21% or local producers (14%). The market share for vinyl products is 50%, equal to the import.
In 2018, Snep continued to implement its development plan initiated in 2017, with the installation of several components of its production tool for commissioning scheduled for 2020. The plan, which has a global envelope of MAD 430 million, is expected to reach an annual production capacity of 90,000 tons and 120,000 tons of PVC respectively in 2020 and 2022, against 70,000 tons in 2018.
“The increase of the production capacities of the three main fields of activity (PVC resin, caustic soda & PVC compound) aims at improving the market share and developing the export whose contribution to the turnover should reach 20% at 2024,” says DG Rachid Mohammadi.
This component is in line with four other strategic areas of its 2017-2022 plan, including the upgrading of equipment to improve productivity, and the development of higher value-added PVC compound, with opportunities, particularly in aeronautics, with a view to strengthening profitability or the gradual substitution of fuel oil by green energies (the wind turbine) in order to optimize costs. Since privatization, the group’s investments amount to 1.4 billion dirhams.
In terms of regulation, the end of 2018 was marked by the decision of the supervising ministry to accept the request for review of anti-dumping duties in force on imports of PVC from the United States, with deposit of anti-dumping duties in force during the period of investigation.