MUMBAI: Reliance Industries Ltd. (RIL) on Thursday signed a memorandum of understanding with the U. S. based specialty chemicals major, Rohm & Haas, for setting up an acrylic monomer complex at Jamnagar in Gujarat.

The latest iniitative coincides with reports that a top level RIL team is holding parleys with another North American chemical giant Nova for a possible joint venture for product manufacturing, a move that may lead to equity participation.

The two firms will explore the possibility of setting up a plant to make two lakh tonnes a year of acrylic acid, a Reliance Industries press release said.

Rohm & Haas Co is headed by India-born and IIT-Mumbai alumnus Raj Gupta as Chairman and CEO. The company is a global pioneer in the creation and development of innovative technologies and solutions for the specialty materials industry. Its technologies are found in a wide range of markets including building and construction, electronics, food and retail, household and personal care, industrial process, packaging, paper, transportation and water. The company has revenues of more than $8 billion.

Reliance is consolidating and expanding its chemical operations after prices of ingredients for packaging, detergents and adhesives rose 27 per cent last year. Chemicals make up about 45 per cent of RIL's earnings.

The MoU follows RIL's decision early this month to merge its petrochemical subsidiary IPCL with itself to consolidate operations of the two companies.

The materials from the new facility are intended to serve as building blocks for products for textile, paints and coatings, packaging adhesives, detergents and construction materials.

"Reliance and Rohm and Haas are committed to exploring the option to collaborate in downstream specialty polymers and chemicals in the Indian sub-continent,'' RIL said.

``While the key objective will be to serve domestic market needs, the complex can also export acrylic acid and derivatives,'' the release said.

The new facility is expected to spur development of super absorbent polymers, used primarily in the manufacture of baby diapers, it added. — PTI

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