28 November 2012 15:19 [Source: ICIS news]
LONDON (ICIS)--A joint venture between Evonik and Indian company Gujarat Alkalies and Chemicals Limited (GACL) to develop a hydrogen peroxide-to-propylene oxide (HPPO) facility in India has been scrapped over a failure to agree ownership stakes, a spokesperson for the Germany-based producer said on Wednesday.
The two companies signed a memorandum of understanding (MoU) in January 2011 to develop a HPPO facility in Dahej, Gujarat.
Under the terms of the agreement, GACL was to construct a propylene oxide (PO) facility, while Evonik was to build a hydrogen peroxide plant. GACL was then to acquire a licence from Evonik and engineering firm Uhde to use the HPPO process to produce PO.
However, the plans were scrapped after the parties failed to reach an agreement on shareholdings in the joint venture, Evonik said.
“Both Evonik Industries and Gujarat Alkalies and Chemicals Limited (GACL), an Indian chemical company, intended each to build a facility: Evonik, a new hydrogen peroxide plant, and GACL, a propylene oxide plant,” the spokesperson said.
“In the negotiations that followed, both companies could not agree on how the shares would be distributed over the common joint venture, so the negotiations were cancelled,” she added.
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