Essar Chemicals inks MoU with Arkema

Ahmedabad, Jan 22 | Updated: Jan 23 2007, 05:54am hrs
Essar Chemicals Ltd, part of Indias Essar Group and Arkema, a leading French chemical company, have announced the signing of a Memorandum of Understanding to study the feasibility of a 50-50 joint venture in India for the production and commercialisation of Acrylic acid and esters.

For Arkema, this will be in line with its strategy to further develop its acrylics business especially in the fast growing regions. For Essar, the venture would signify adding value to streams coming out of its world class oil refinery recently commissioned in India.

The new world-scale production plant would come on stream in 2010. It would be located at Vadinar in Gujarat Province on Indias north-west coast, downstream from the recently commissioned Essar refinery, using propylene as feedstock.

This unit will be the first acrylic acid plant to be built in India and would serve the fast growing acrylics market in this part of the world. Its location would be ideal to supply both the Indian and the Asian markets, comments Henri Dugert, group president of Arkemas acrylics business unit. Anshuman Ruia, director, Essar group, said Essar group is firmly on the path of expanding value chain in all their businesses and entry into this business would further enhance potential of Essar Oils refinery from where main feedstock propylene will be supplied for acrylic complex. Joining hands with Arkema, one of the premier companies in the world in this business, will provide strategic leverage in the Indian chemical market to both companies.

A world-class chemical concern, Arkema combines three strategically related, integrated businesses: vinyl products, industrial chemicals and performance products.

With operations in more than 40 countries and 18,400 employees, the company reported revenue of 5.7 billion euro in 2005.