Essar Chemicals Ltd, part of Essar Group, and leading French chemical company Arkema have announced the signing of a memorandum of understanding (MoU) 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, a company release said.
The new world-scale production plant would come on stream in 2010. It would be located at Vadinar in Gujarat, 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 Arkema's Acrylics Business Unit.
According to Essar Group Director Anshuman Ruia, "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 Oil's 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 Indian chemical market to both companies."