MUMBAI (ICIS)--India’s IG Petrochemicals Ltd (IGPL) plans to set up a greenfield 80,000 tonnes/year phthalic anhydride (PA) plant in western Gujarat state, it said in a statement.
The company’s board of directors approved the setting up of the Indian rupees (Rs) 6bn ($82m) chemical complex at Gujarat which will contain the PA line and other derivative plants, it said in the filing on the Bombay Stock Exchange (BSE) on 9 February.
The new plant will commence operations in three years, the company said, adding that it planned to raise funds for the new project through internal accruals and loans.
The new PA capacity will help IG Petrochemicals meet increasing demand in downstream products like paints, plasticizers¸ polyvinyl chloride (PVC), unsaturated polyester resins etc, IGPL said in its statement.
“The demand for PA in the domestic market is expected to increase due to government focus on infrastructure spending and demand growth led by good GDP growth in India,” it added.
The company began commercial production at its 53,000 tonnes/year brownfield manufacturing facility (PA-4) at Taloja in western Maharashtra state on 29 December 2020.
Post expansion IGPL currently produces around 222,110 tonnes/year of PA, 8,000 tonnes/year of Maleic Anyhdride (MA) and 1,300 tonnes/year of benzoic acid and 8,400 tonnes/year of plasticizers at its Taloja complex as per the company website.
($1 = Rs 72.83)