23 September 2013 00:00 [Source: ICB]
Hindustan Organic Chemicals Ltd (HOCL) is seeking a joint venture partner for its proposed new chemical production complex – its third at Rasayani – in India’s western Maharashtra province, a government official said.
The company, which is majority owned by the Indian government, will contribute $16m that it raised through bond issuance, as well as its 500 acres of land at the site for the plant, to the joint venture, the official from India’s Ministry of Chemicals and Fertilizers said.
Capacities of the production lines and financial details of the project would be firmed up after the selection of a partner.
Large Indian government-owned chemical companies or multinational chemical firms with access to the latest technology would be the preferred partners, the official said.
HOCL’s Rasayani site has two chemical complexes that currently produces formaldehyde, nitrobenzene, aniline, nitro toluene and hydrogen peroxide, the official said.
At Kerala in southern India, the company is considering doubling its 25,000 tonne/year phenol/acetone production capacity, the official said.
Expansion of the phenol/acetone is necessary to achieve higher economies of scale since HOCL’s facility has been having intermittent operations because of intense competition posed by imports, the official said.
The company has been losing share in the domestic market since March 2012, when India lifted its anti-dumping duties on phenol/acetone imports from US, South Korea and Taiwan, the official said, citing that imports are generally cheaper, the official said.
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