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Vendor News
Dow Europe and GACL sign agreement
Gandhinagar, Gujarat
Dow Europe GmbH (Dow)—a wholly owned subsidiary of the Dow Chemical Company—and
Gujarat Alkalies and Chemicals Limited (GACL)—a company promoted by Government
of Gujarat, has announced the signing of a joint venture agreement (JVA) in
the presence of the Honourable Chief Minister of Gujarat, Narendra Modi, for
the construction of a chloromethanes manufacturing facility with the capacity
of 2,00,000 TPA in Gujarat. "The joint venture will go a long way in strengthening
Gujarat as a sustainable pioneer of chloromethanes product manufacturing and
services," said Modi.
This agreement will help the pharmaceutical industry as chloromethanes are used
as intermediates in the production of fluorocarbons and fluoropolymers, and
as solvents in pharmaceutical manufacturing, metal cleaning/degreasing, and
other chemical processing applications. GACL will supply feedstock and power
and lease land to the JV, while Dow will license its production technology and
marketing and sales expertise. The JV also allows Dow and GACL to complete a
study, begin work on definitive agreements and work towards financial closure
which is estimated to be completed by late 2008. Estimated to be operational
in 2011, the new production unit would be located at Dahej, Gujarat, on the
western coast of India. The parties will form a 50/50 JV company to manage local
permitting processes.
"As GACL and Dow form a JV company and enter into negotiation of the definitive
agreements for this project, we do so against the all-important backdrop of
sustainability," said Michael R Gambrell, Executive Vice President, Basic
Chemicals and Plastics, Dow. "The new investment through this JV will give
a push to the down stream users in the pharmaceuticals, refrigerant and solvent
sector by making raw materials available at more competitive rates and bringing
valuable forex to the country," said Saurabhbhai Patel, Minister Of State
for Energy and Petrochemicals, Government Of Gujarat.
"We are happy to be associated with Dow to work on this project, which
will help the country to achieve its commitments as a part of the Montreal Protocol,
to which India is a signatory," said Dr Manjula Subramaniam, Chairperson,
GACL, and Chief Secretary, the Government of Gujarat. She further informed that
the association of GACL with Dow would result in various business avenues for
the State.
"Dow's best-in-class process technology to produce chloromethanes will
help to minimise production of carbon tetrachloride (CTC). The JV will also
be able to convert the total CTC production, not only from this facility, but
CTC produced in India, into a valuable product, a major breakthrough for India's
chemical industry," said Gambrell. "Keeping with Dow's 2015 Sustainability
Goal to Contribute to Community Success, we are contributing Rs 75 lakh to purchase
the equipment to provide clean drinking water to over 10,000 residents of three
neighboring villages of Jolwa, Suva and Vadadla by using Dow technology. We
plan to offer this facility to other neighboring villages in the months to come,"
he continued.
The JV will market its products primarily to countries who are members of the
South Asian Association for Regional Cooperation (SAARC).
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