AkzoNobel Joint Venture India
Thursday, April 28, 2016
AkzoNobel and Atul have signed a Letter of Intent to explore the feasibility of setting up a manufacturing joint venture for the production of monochloroacetic acid (MCA) in India.
The two companies plan to install a world scale MCA plant at Atul's facility in Gujarat, subject to the necessary regulatory approvals, building on Atul's status as a leading supplier of crop protection chemicals (which uses MCA as a key raw material) and AkzoNobel's leading global position in MCA, with plants in the Netherlands, China, Japan and the US.
The intended joint venture will use chlorine and hydrogen manufactured by Atul to produce MCA, taking advantage of Atul's existing infrastructure and AkzoNobel's latest eco-friendly hydrogenation technology. The proposed facility will mainly serve the Indian MCA market, as well as meeting the captive requirements of Atul.
"As a company we are committed to achieving growth in India and this cooperation presents a unique opportunity for us to participate in the Indian MCA market," said Werner Fuhrmann, AkzoNobel's Executive Committee member responsible for Specialty Chemicals.
Added Sunil Lalbhai, Chairman and Managing Director of Atul: "We are extremely passionate about taking forward the 'Make in India' initiative led by our Honourable Prime Minister, Shri Narendra Modi, by bringing in state-of-the-art, eco-friendly technologies from world class companies."
MCA is an essential building block in the chemical industry and is used in a wide variety of chemicals. For example, AkzoNobel's customers use MCA to produce thickening agents for the food, oil, mining, personal care and detergent industries. The product is also used in agrochemicals, adhesives, pharmaceuticals, thermo stabilizers, surfactants and cosmetics.