03 February 2010 07:44 [Source: ICIS news]
By Priya Jestin
MUMBAI (ICIS news)--India’s JBF Industries Ltd and state-owned Oman Oil plan to begin operations at their new joint venture 1.2m tonne/year purified terephthalic acid (PTA) plant in Oman in three years, a source with the Indian company said on Wednesday.
JBF Industries had signed an initial agreement with Oman Oil for the plant, which would be built at a total cost of around $680m (€490m), the source said, but did not give details regarding the joint-venture ratio.
"The agreement is still in the initial stages. Once we complete the formalities, it shouldn’t take much time to set up the plant and begin operations," the source said.
"The new plant would take around 30-36 months from today [Wednesday] to be ready to begin operations," the source added.
The new plant will be located close to the Oman Aromatics complex at the industrial port city of Sohar, on the north east coast of Oman. This region was chosen because of the abundance of raw materials and cheap energy, the source said.
Oman Aromatics would supply feedstock paraxylene to the new plant, the source added.
JBF Industries plans to market product from the new plant in the Gulf Cooperation Council (GCC) countries, the source said, adding that a major part would be sold in the United Arab Emirates (UAE) and Oman.
"If there is any requirement for PTA in India and we have products available, we may think of sending it to India later," the source said.
At present the company did not have any plans of importing to India in the near future, the source added.
JBF Industries is a Mumbai-based synthetic yarn and polyester chips manufacturer.
($1 = €0.72)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|