Gujarat Chemicals, Dow to set up organics plant in IndiaApril 16th, 2008 - 8:32 pm ICT by admin
Gandhinagar, April 16 (IANS) The state-owned Gujarat Alkalis and Chemicals Ltd (GACL) and Dow Europe, a unit of Germany based Dow Chemical Co, announced Wednesday the forming of a joint venture for an organics plant in the state. The Rs.6 billion chlorinated organics products (chloromethane) plant to be located at Dahej in south Gujarat is being tipped as a special chemical hub by the Gujarat government.
The agreement for the construction, operation and ownership of the manufacturing facility for the project was inked in the state capital.
The financial closure for the project will be completed by the end of this year and the project will start operations in 2011.
The plant will manufacture 200,000 tonnes of chloromethane a year, according to officials.
The joint venture will have a fifty-fifty shareholding partnership. GACL will supply about 600 tonnes of chlorine per day to the joint company.
The synergy of GACL and Dow’s strengths will lay a strong foundation for mutual future growth, both partners believe.
Dow Europe is a wholly owned subsidiary of the Dow Chemical Company and is a global leader in chemical industry and largest supplier of chlorinated organic products.
Dow’s best-in-class process technology to produce chloromethane will help minimize production of hazardous carbon tetrachloride. The joint venture company will primarily cater to the demand of Saarc countries.
Speaking on the agreement Michael Gambrell, executive vice president, of Dow said: “Being here in India, and understanding the growth prospects for both our companies, as well as this region, is very exciting.”
The state minister for energy and petrochemicals Saurab Patel said: “The new investment through this joint venture will give a push to the down stream users in the pharmaceuticals, paints and grease removal, refrigerant and solvent sector by making raw materials available at more competitive rates and bringing valuable forex to the country.”
“We are happy to be associated with Dow to work on this project, which will help the country achieve its commitments as part of the Montreal Protocol, to which India is a signatory,” said Manjula Subramaniam, chairperson of GACL and chief secretary of the state.
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