Dow Europe to set up India plant with Gujarat Alkalies

16 April 2008

Dow Europe GmbH (Dow), the wholly owned European subsidiary of Dow Chemical Company, has signed a  joint venture agreement with the Gujarat-government promoted Gujarat Alkalies and Chemicals Ltd (GACL), to manufacture 200,000 metric tons of chloromethanes per year at Dahej in Gujarat.

Representatives from the two companies signed an agreement in Gandhinagar today to build a new manufacturing facility and said that they expected to achieve financial closure for the project later this year.

The plant, to be jointly owned and operated by the two companies, is scheduled to start production in 2011 at an estimated investment Rs600 crore.

Once the plant becomes operational GACL will supply approximately 600 MT of chlorine feedstock per day from its existing plant at Dahej,  while Dow will license its production technology, sales and marketing network for sales to SAARC countries. GACL will also make land available for the venture.

GACL is the largest maker of caustic soda with a combined 412,500 tonnes per annum capacity. It has two units located at Vadodara and Dahej in Gujarat, both of which are integrated facilities for manufacturing caustic soda, chlorine, hydrogen gas, hydrochloric acid, chloromethanes, hydrogen peroxide, phosphoric acid, potassium hydroxide, potassium carbonate, sodium cyanide, sodium ferrocyanide, aluminium chloride, poly aluminium chloride, CPW.

The Dahej unit also has 90 MW captive power plant, which will also supply power to the new facility.