Tuticorin to spend $7.6m on feedstock solution

08 January 2008 02:48  [Source: ICIS news]

SINGAPORE (ICIS news)--India’s Tuticorin Alkali Chemicals and Fertilisers (TAC), plans to spend Indian rupees (Rs) 300m ($7.6m) on additional equipment to solve the feedstock carbon dioxide (CO2) problem at its soda ash plant in Tamil Nadu, a company executive said on Tuesday.

“The CO2 plants will be installed by our operations department over the next 12 to 18 months. Hopefully, this will enable our soda ash plant to avoid shutdowns in the future due to feedstock shortages,” the executive added.

He said that the company was purchasing soda ash from domestic Indian makers to fulfil its current backlog of orders.

Indian domestic prices of soda ash softened by Rs200/tonne to Rs12,300/tonne ex-works (EXW) for the week ended 4 January as producers lowered their offers to compete with imports of soda ash into the country, according to global chemical markets intelligence service ICIS pricing.

TAC’s soda ash facility was shut down in May due to a lack of feedstock from its parent company Southern Petrochemical Industries Corp (SPIC).

Numerous delays in restarting the plant resulted and no starting date has been set for 2008.

TAC’s soda ash plant produces 110,000 tonnes/year of soda ash and 105,000 tonnes/year of ammonium chloride.

Other major producers of soda ash in India include Tata Chemicals and Gujarat Heavy Chemicals.

($1 = Rs39.31)

By: Hong Chou Hui
+65 6780 4359

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