India's Alpha mulls Saudi Arabia plastic investment

19 September 2007 16:41  [Source: ICIS news]

MUMBAI (ICIS news)--India’s Alpha Group has signed a memorandum of understanding (MoU) with DevCorp International to conduct a feasibility study for setting up a plastics processing unit in Saudi Arabia, a company official said on Wednesday.

"We are expecting the final report of the study in about four months and hope to commission our plant in Saudi Arabia by October 2008," Alpha Group executive director Kamal Agarwal told ICIS news.

The cost of the project is expected to be around Indian rupees (Rs) 2bn ($49.6m), he added.

The group is also looking for local partnership and is seeking a majority stake in the venture, Agarwal said.

The company is looking at manufacturing polyethylene (PE) bottles and speciality films, which include shrink and stretch films, he added.

"We would be exporting most of our products to Europe and America," he said.

The company has not identified any potential feedstock suppliers for its project yet, Agarwal said.

Saudi Basic Industries Corp (SABIC), PetroRabigh and Dow Chemical are among the major raw material providers in the region, he added.

($1 = Rs40.28)

By: Isha Jha
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