30 September 1996 00:00 [Source: ACN]
TAMILNADU Petroproducts Ltd (TPL) has formed a joint venture with Ciba India to manufacture epoxy resins at Manali, near Madras.
TPL will supply epichlorohydrin to the epoxy resin facility and will double its current 10 000 tonne/year capacity to meet the 15 000 tonne/year demand for epoxy resins. It plans to launch a Euro convertible bond issue to finance the expansion.
The venture, Petro Araldite, will produce 25 000 tonne/year of epoxy resins, partly for captive use in the formulation of Araldite adhesive by 51%-owned Ciba subsidiary, Hindustan Ciba-Geigy.
The Rs600m (US$16.8m) project will be financed by equity. Ciba India, a fully owned subsidiary of Ciba-Geigy, will hold 74% of the company, and TPL 26%.
The facility is expected to start production by August 1998.
Indian demand for epoxy resins is estimated at 8000 tonne/year and is growing at 10%/year. Petro Araldite plans to export product to Ciba group companies worldwide as well as supply the local market.
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