EPCA '07: BP planning acetic acid JV in India

30 September 2007 11:50  [Source: ICIS news]

BERLIN (ICIS news)--BP Chemicals plans to build a new 650,000 tonne/year acetic acid plant in India in a joint venture, officials said on Sunday.

 

“India’s the largest democracy in the world, and growth there is more substantial than in other countries,” said Martin Robinson, director of business development and projects for BP Acetyls Asia.

 

Indian demand is currently around 500,000 tonnes/year. Demand for acetic acid is linked to growth in gross domestic product, which is strong, he said on the sidelines of the European Petrochemical Association (EPCA) meeting.

 

The Indian market has not developed in part because of a lack of availability of end-use products, he said.

 

“Indians will only paint if you put paint in the shops,” Robinson added.

 

The company hopes to announce by early 2008 that it has established a partnership to build a plant in India by the end of 2010.

 

India was an attractive location to look at investments, BP officials said, and the company is already a marketer in the area. India is the second fastest growing major economy in the world, with GDP of $1 trillion, according to Credit Suisse.

 

“It was clear if we want to be a part of that market, we need to act now,” Robinson said.

 

The plan is in line with BP’s global growth plan to establish itself as a market leader in acetic acid. The company expects to move people into India for key positions at the new acetic acid plant.

 

The BP group has a total workforce of about 1,400 people in India, of which 920 are employed by Castrol, and another 550 at Tata BP Solar.

By: Tracy Dulle
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