AkzoNobel and Atul to establish monochloro acetic acid JV in India
Dutch firm AkzoNobel and India-based Atul, a Lalbhai Group company, have signed an agreement to establish a manufacturing joint venture (JV) for production of monochloro acetic acid (MCA), a key raw material for crop protection and other chemicals.
Under the deal, the companies plan to install a MCA plant at Atul's facility in Gujarat, subject to the regulatory approvals.
Akzo Nobel, a producer MCA, has plants in the Netherlands, China, Japan and the US.
The proposed JV will use chlorine and hydrogen manufactured by Atul to produce MCA, taking advantage of the company's existing infrastructure and AkzoNobel's latest eco-friendly hydrogenation technology.
AkzoNobel Specialty Chemicals executive committee member Werner Fuhrmann said: "As a company, we are committed to achieving growth in India and this cooperation presents a unique opportunity for us to participate in the Indian MCA market."
It is expected that the proposed facility will mainly serve the Indian MCA market, as well as meet the captive requirements of Atul.
Atul chairman and managing director Sunil Lalbhai said: "We are extremely passionate about taking forward the 'Make in India' initiative led by our Honourable Prime Minister, Shri Narendra Modi, by bringing in state-of-the-art, eco-friendly technologies from world class companies."
AkzoNobel noted that its customers use MCA to produce thickening agents for the food, oil, mining, personal care and detergent industries.
MCA is also used in agrochemicals, adhesives, pharmaceuticals, thermo thermo stabilisers, surfactants and cosmetics.
Image: AkzoNobel MCA business general manager Rob Vancko Jr and Atul chairman and managing director Sunil Lalbhai at the signing of the letter of intent. Photo: courtesy of Akzo Nobel NV.