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Stiles said: “In the next three years, although some new chlor-alkali capacity will be put into production in North America, the chlor-alkali production capacity caused by the rationalization of the manufacturer will decline even more.†The capacity of new caustic soda production in North America will exceed 2000 to 2011 2 million tons/year, but at the same time there will be 4 million tons/year of capacity cut in the rationalization process.
The reduction in supply may help strengthen the caustic soda market. The average annual growth rate of the caustic soda market is 0.8%. In 2007, the world consumed about 60 million tons of caustic soda.
Chlor-alkali production capacity in North America will decline by 6% over the next 3 years
At the 12th Asian Chlor-Alkali Conference in Bangkok, Thailand, Cristi L Stiers, the Dow Chemical company responsible for global chlor-alkali product marketing, said that continued weakness in demand and rationalization of business by manufacturers With the impact of configuration, chloralkali production capacity in North America may decrease by 6% over the next three years. The current North American chlorine production capacity is about 12.6 million tons/year, and by 2011 it will be reduced by about 760,000 tons/year.