INEOS Acetyls and Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) have signed a Memorandum of Understanding (MOU) to explore the feasibility of building a new, world-scale acetic acid plant in Bharuch, Gujarat, India.
The proposed plant will have a capacity of 600kt per year. The collaboration marks the next step in their long-standing partnership, which has lasted nearly 30 years.
A joint venture (JV) will manage the venture and bring the project to market, with production expected to begin by 2028.
Strategic Importance for India’s Acetic Acid Production
INEOS Acetyls, a global player in acetic acid production, joins forces with GNFC, which is currently the sole producer of acetic acid in India.
David Brooks, CEO of INEOS Acetyls, expressed excitement about the project, highlighting India as a key growth market.
He noted that this investment will enhance local production of acetic acid, reducing India’s dependence on imports.
Reducing Import Reliance
Currently, India imports around 85% of its annual acetic acid requirements. Pankaj Joshi, Managing Director of GNFC, emphasized that the JV would support India’s “Make in India” initiative by domestically producing acetic acid.
The project is expected to meet the current demand and significantly boost evolving downstream industries. It will help save foreign exchange by reducing reliance on imports.
Conclusion
This collaboration represents a significant step towards strengthening India’s manufacturing capabilities. It also aims to reduce reliance on foreign imports for critical chemicals, such as acetic acid.
As per the press release, the upcoming JV will play a crucial role in the country’s industrial growth. It aligns with India’s long-term economic goals.
