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RIL commissions PTA and PET resin plants at Dahej

The PTA plant with a capacity of 1,150 KTA will increase RIL's total PTA capacity to 3.2 MMTPA

A man walks past a Reliance Industries Limited sign board installed on a road divider in Gandhinagar
BS Reporter Mu
Last Updated : Apr 10 2015 | 6:49 PM IST
Reliance Industries Limited (RIL) today commissioned two plants at Dahej, Gujarat— a Purified Terephthalic Acid (PTA) plant and a PET resin (Polyethylene Terephthalate) plant.

The PTA plant with a capacity of 1,150 kilo tonnes per annum (KTA) will  increase RIL's total PTA capacity to 3.2 million metric tonnes per annum (MMTPA) and global capacity share to 4%.

"The start-up of the new PTA plant at Dahej will take India closer to self-sufficiency in PTA, in line with the vision of Make in India," RIL said in a statement. India is the second largest producer of polyester with estimated production of 5.4 MMTPA. The Indian polyester market is growing at 8-10% annually. Indian market is currently deficit in PTA by over 1.5 MMTPA.

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Paraxylene, the key feedstock for the PTA plant, is sourced from Reliance’s Jamnagar refinery. The PTA plant is also forward integrated with a 650 KTA PET plant in the same complex.

The integrated operation will help in lower operating cost and capture full chain margins. "Another PTA plant of similar capacity is under construction at the same location. With these capacities, Reliance will be placed among the top five PTA manufacturers globally," RIL said.

Its PET resin plant consists of two lines with a combined manufacturing capacity of 650 KTA. This is one of the largest bottle-grade PET resin capacity at a single location globally. This consolidates Reliance’s position as a leading PET resin producer with a global capacity of 1.15 MMTPA. Current global effective PET resin capacity is estimated at 30 MMTPA.

The plant is equipped with state-of-the-art technology for consistent quality and reliable production capability. New capacity addition by Reliance will help the downstream bottle and packaging industry in meeting the increasing demand from India and the region.

"India is one of the fastest growing markets for PET packaging with demand growing by 15-20% annually. Purified Terephthalic Acid (PTA) and Mono Ethylene Glycol (MEG), the two feedstock for the new PET plant are available within the Dahej complex. This offers significant logistics advantages in the form of lower freight costs along with consistent product quality due to in-house raw material linkages," RIL said.

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First Published: Apr 10 2015 | 6:42 PM IST

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