The completed plant is expected to produce around 400,000 tonnes of VCM/PVC (vinyl chloride monomer/polyvinyl chloride) from EDC (ethane dichloride) per year. It will also make full use of the company's proprietary EDC cracking technology in the production process and is due for completion by August 2005.

Under the terms of the contract, Technip will supply the license, basic and detailed engineering, supply key equipment and materials and provide technical assistance for construction and commissioning of the plant. The project will be undertaken by Technip's engineering centre based in Kuala Lumpur.

Cangzhou Cang Hua Chemical Industry had previously used Technip before to build its 120,000 tonnes per year VCM unit in 1997.