The Hindu : Business : CFL in talks with Mitsui for JV

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Friday, Dec 02, 2005

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CFL in talks with Mitsui for JV

Special Correspondent

Decision on ammonia unit location shortly

NEW DELHI: Coromandel Fertilisers is in talks with Japanese firm Mitsui & Co to set up a joint venture for ammonia production as part of its efforts aimed at backward integration.

"We are trying to set up a 0.5 million tonne capacity plant through a joint venture with Mitsui," CFL Chairman A. Vellayan told media persons after the formal signing of the joint venture here for the manufacture of phosphoric acid.

He said Mitsui and CFL would have equal stake in the proposed joint venture. While the talks were in preliminary stages, the two companies were in the process of detailing the requirements, including the location of the proposed new ammonia production plant.

"A complete picture on the new venture will emerge within the next six months", Mr. Vellayan said adding that the decision to set up the JV for ammonia production was the logical way forward as CFL had been importing the chemical from Mitsui.

On the proposed phosphoric acid project, Mr. Vellayan said it would be a tripartite joint venture with Gujarat State Fertiliser Corporation and Tunisian fertiliser company, Groupe Chimique Tunisien. The unit would be located in Tunisia.

CFL and its Indian partner GSFC will have 15 per cent stake each while the Tunisian company GCT will hold 70 per cent stake in the Tunisian JV. Mr. Vellayan, however, ruled out involving another Indian partner for its JV with Mitsui.

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