MUMBAI (ICIS)--India’s KLJ Plasticizers (KLJ) is looking at starting up a new 100,000 tonne/year phthalic anhydride (PA) capacity at Jhagadia in western Gujarat state by 2023, a senior company official said.
This is part a planned greenfield integrated phthalate plasticizers and PA complex at the site, on which the company is investing about Indian rupees (Rs) 7bn ($96m), the official said.
The initial capacity for phthalate plasticizers would be 250,000 tonnes/year, which is also expected to commence operations by 2023.
KLJ may expand capacity at the new plant at a future date depending on the demand for its products, the official said.
“We are keeping provision for future expansion, but how much and when is still not known. This would certainly depend on the prevailing market conditions, once the initial capacity is in place,” the KLJ official said.
Based on the company’s submission to the Ministry of Environment, Forests & Climate Change dated August 2020, the planned complex will have a total PA capacity of 200,000 tonnes/year, and will be able to produce 7,100 tonnes/year maleic anhydride (MA) and a total of 480,000 tonnes/year of other plasticizers.
The planned PA unit at the Jhagadia complex will allow for backward integration, the company official said, adding that the plant’s output would be for captive consumption only, the KLJ official said.
Plasticizers are used in plastics or other materials to impart flexibility, softness, or other properties to the finished product. PA is used as a chemical intermediate in the production of phthalate plasticizers.
“Demand is now more or less back to pre-Covid levels, with an organic growth of 6-8% per year,” the company official said.
Once the new complex is ready, KLJ plans to move the production of phthalate plasticizers to Jhagadia and will produce phthalate-free plasticizers at its existing Silvassa complex, he added.
Silvassa is located in the union territory of Dadra & Nagar Haveli in western India.
The company currently has 330,000 tonnes/year of plasticizers capacity in Silvassa, producing both phthalate and non-phthalate plasticizers.
Once the new complex is established at Jhagadia with the PA capacity, it will be easier for the company to produce phthalate plasticizers at the new complex as it will be an integrated facility.
The company also plans to “add specialty products to its basket at the Silvassa plant to gainfully utilize the installed capacity”, the KLJ official said.
($1 = Rs 72.59)