Mitsui to set up manufacturing unit in Rajasthan

Mitsui Prime Advanced Composites India has announced a manufacturing facility for polypropylene compounded resin, with support from the Rajasthan State Industrial Development & Investment Corporation (RIICO) at Japanese Investment Park, Neemrana "� Phase III, in Rajasthan.

The Bhoomi Poojan of Mitsui Prime Advanced Composites India, a wholly-owned subsidiary of the multinational Japanese company Mitsui Chemicals Inc, was performed today.

The unit, with an initial capacity of 15,000 tonnes per annum (tpa), will supply polypropylene compounded resins used for manufacturing bumpers, panels, pillars, etc., for four wheelers to major car manufacturers across the country. The unit will be operational from the first quarter of 2009.

On the occasion, Kuldeep Ranka, managing director, RIICO, said, "The entry of reputed Japanese companies like Mitsui will boost the emergent auto sector in Rajasthan and accelerate the state's economic growth."

Junichi Nakagawa, managing director of Mitsui Chemicals' petrochemicals business, said, "India's burgeoning auto sector provides us an excellent opportunity...."

Last year, in an MoU signed between the RIICO and JETRO (Japanese External Trade Organization), RIICO had committed to reserve industrial land for Japanese investors in Neemrana for the auto component sector in order to enhance Japanese investments in the state.

In August this year, Nissin Brakes India announced a new manufacturing unit near the same venue.

In Bhiwadi, 40 km from Neemrana-Phase III, RIICO has already provided about 600 acres to Honda Siel Cars India Ltd (HSCIL) to set up its second manufacturing plant.

The presence of automobile majors like Ashok Leyland, Eicher, and Honda Siel Cars in the region has facilitated the growth of the manufacturing sector in Rajasthan in a major way.

About 70 auto component units, including prominent players like Caparo Fasteners, Climate System, Federal Mogul Goetze, Hi-Tech Gear, Ocap Chassis, Amtek India, Balkrishan Tyres and Continental Engines, are also present in the Bhiwadi region.

The RIICO is also the sole government agency in Rajasthan involved in the development of land for industrial enterprises.

Large, medium and small-scale projects get an easy access to a ready-to-use base with supporting infrastructure facilities in industrial areas developed and managed by the RIICO.

Mitsui Chemicals Inc is a multinational company with a turnover of around $15 billion and has business interests in Japan, Europe, China, Southeast Asia and the USA. The company mainly deals in performance materials, petro and basic chemicals and functional polymeric materials.

The unit being set up will be the manufacturing base of Mitsui Chemicals Group in India. Mitsui Chemicals will hold 80 per cent equity and the remaining will be held by its subsidiary, Prime Polymers Company of Japan.