26 September 2011 12:35 [Source: ICIS news]
LONDON (ICIS)--Hungary’s BorsodChem has reached a partnership agreement with ?xml:namespace>
The plant, to be operational in Kazincbarcika at the end of 2012, would use hydrochloric acid (HCl), a by-product of isocyanates production, it added.
Chemical production and distribution company Donau Chemie would make an initial investment of €6m ($8.16m) to establish the water treatment chemicals plant, creating around 20 new jobs, BorsodChem said.
As part of the partnership agreement, BorsodChem has also hired Donau Chemie to handle and distribute the HCl which, it noted, would be produced in increased volumes with the start-up of its new toluene di-isocyanates (TDI) plant.
BorsodChem selected Donau Chemie for the long-term handling of its HCl in an international competitive tender that attracted several offers after it was initiated in 2010, the company said.
“This partnership agreement is of great importance for BorsodChem to secure a stable operation of its enlarged production facilities,” said Wolfgang Buchele, CEO of BorsodChem.
“In Donau Chemie we have found a partner who has broad experience in the production of water treatment chemicals as well as in the distribution of HCl. The new water treatment chemicals investment at Kazincbarcika will create new jobs in an area of high structural unemployment,” he added.
“Our extensive experience in an oversupplied HCl market in central and eastern Europe ensures that we will fully perform according to BorsodChem’s expectations,” said Franz Geiger, CEO of Donau Chemie.
Although most of BorsodChem’s HCl would be distributed via Donau Chemie, BorsodChem said it would continue to directly sell around 30,000-40,000 tonnes of HCl annually in the central and eastern European market.
($1 = €0.74)
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