The Hindu : Business : Mitsubishi Chemicals to expand Haldia PTA facility

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Tuesday, Jan 10, 2006

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Business

Mitsubishi Chemicals to expand Haldia PTA facility

Special Correspondent

Board nod for Rs.1,665-cr. investment

KOLKATA: The board of directors of Mitsusbishi Chemicals Corporation (MCC), among the world's top ten chemical companies, has approved an expansion of the company's purified terephthalic acid (PTA) production facility at Haldia in West Bengal, Tokio Niikuni, Managing Executive Officer and COO, petrochemicals segment, MCC, said. Making this announcement, Mr. Niikuni said the new line would entail an investment of Rs. 1,665 crore, creating an annual capacity of eight lakh tonnes. The existing plant was commissioned in April 2000 at an investment of Rs. 1,475 crore through its Indian subsidiary MCC PTA India Corporation Private Ltd (MCPI). The initial capacity of 3.5 lakh tonnes was increased to 4.7 lakh tonnes through de-bottlenecking. Mr. Niikuni said the expansion decision was in due recognition of the plant's satisfactory performance. MCC is now Japan's largest investor in India.

Once the expansion project is completed (targeted by June 2008), the Haldia facility will become a major PTA production centre of the world. "Our target is to make this unit the largest capacity in a single line, capable of producing the best quality PTA in the world," Mr. Niikuni said.

With this expansion, MCPI will be able to cater to India's growing needs of polyester products such as fibre, PET bottle and films, according to Yoshihiro Ikegawa, Managing Directior, MCPI. He said that robust demand growth was envisaged for polyester products in India in view of the increase in India's share in textile exports after the abolition of the quota system.

Mr. Niikuni said the factors influencing the choice of Haldia as a destination were easy availability of land and industrial water, good port facilities for handling liquid cargo and availability of skilled resources. There was also strong support from the State government. He said technical personnel from MCPI had been deputed to impart training to the engineers of MCC's upcoming plant in China.

The new plant, which will come up on the present premises, will create additional employment of 1,000 people.

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