Japan's Kaneka forms JV to build CPVC facility in Gujarat, India

06 December 2011 12:09  [Source: ICIS news]

TOKYO (ICIS)--Japanese chemical producer Kaneka Corp has entered into a joint venture agreement with India’s Meghmani Organics and Japan’s Mitsui & Co to build a chlorinated polyvinyl chloride (CPVC) production facility in the Indian state of Gujarat, the company said on Tuesday.

The agreement was signed on 6 October but the three companies could not meet earlier with the head of the state to receive approval to announce the forming of the venture as October is a festival month in India, a source from Kaneka said on the phone.

The new company, Trience Specialty Chemicals, will build a CPVC plant with an initial capacity of 20,000 tonnes/year following a feasibility study, with commercial production scheduled to start in 2014, Kaneka said.

The company is considering increasing the CPVC unit’s capacity according to demand trends, and total capital investment for the facility is estimated at yen (Y) 10bn ($129m) including such future upgrading, Kaneka added.

Kaneka has a 41% stake in Trience Specialty Chemicals, while Meghmani Organics and Mitsui & Co hold 39% and 20% shares respectively, according to Kaneka.

For more on PVC visit ICIS chemical intelligence

By: Tomomi Yokomura
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