Reliance, DuPont Polyester sign MoU
By Our Corporate Bureau | 11 Mar 2002
Mumbai: Reliance Industries Ltd (RIL) has signed a memorandum of understanding (MoU) with DuPont Polyester Technologies (DPT) to license the revolutionary resin technology, known as NG-3, from DuPont, an RIL press release said.
RIL said it will expand its existing Relpet polyester packaging resin (PET) capacity of 80,000 tonnes per year to 300,000 tonnes per year by building the worlds first plant based on the NG-3 process.
This new world-scale plant will be located alongside the existing facility for Relpet at Hazira and will have a capacity of 220,000 tonnes per year. Reliance is already the second-largest polyester yarn and fibre producer in the world, with a capacity of 925,000 tonnes per year. With this new plant for Relpet, the total capacity of RIL for polyester yarn, polyester fibre and polyester packaging resin will exceed 1.2 million tonnes per year.
The new plant will employ NG-3, the newest generation process from DuPont, uniquely designed to produce high-molecular-weight PET resin for the fast-growing bottle market. End uses include packaging for brand-name carbonated soft drinks and bottled drinking water, the demand for which is growing worldwide at an exponential rate.
The new range of Relpet products from the DuPont NG3 technology will deliver to RIL customers the twin benefits of shorter moulding cycle times and a lower energy consumption in the production of bottles. The final consumer, both in India and abroad, will also benefit, as the higher purity of the basic resin and lower levels of acetaldehyde will translate into a taste advantage.
RIL expects that initially a significant volume of Relpet made from the new plant will be exported to major overseas distribution and marketing networks. This will go a long way in building Indias image as an exporter of high technology, value-added products.
Reliance is well-known for the strength of our vertical integration, which enables us to make Relpet literally from crude oil, and makes us therefore one of the most reliable producers of PET. We now add to that strength this new plant, the first of its kind in the world, which will deliver unique benefits of cutting-edge technology to our customers - whether in India or abroad, says RIL president (polyester sector) Subodh Sapra.
Says DuPont Polyester Technologies director Robert W Graham: As DuPont and Reliance have had a strong relationship for more than 20 years, RIL is the natural partner for us to introduce our new NG3 technology. We are sure that this will further strengthen our relationship and enable RIL to enhance its position as a world leader in polyester.
The Reliance group is Indias largest business house with total revenues of Rs 62,000 crore (US $13.2 billion), a cash flow of over Rs 6,800 crore ($1.5 billion), a net profit of over Rs 4,400 crore ($950 million) and exports of Rs 9,370 crore ($2 billion). The group has total assets of Rs 55,000 crore ($11.8 billion). The groups activities span textiles, synthetic fibres, fibre intermediates, petrochemicals, oil and gas production, financial services, refining, power, insurance, telecom and infocom initiatives.
During 2002, DuPont is celebrating its 200th year of scientific achievement and innovation - providing products and services that improve the lives of people everywhere. Based in Wilmington, DuPont delivers science-based solutions for markets that make a difference in peoples lives in food and nutrition, healthcare, apparel, home and construction, electronics and transportation.
Relpet is a registered trademark of RIL.
