India's leading specialty chemicals maker, Solaris Chemtech Industries Limited is planning to set up a potash facility in Canada in partnership with US-based global chemicals company Chemtura Corporation.
An arm of the $ 4 billion Avantha Group, Solaris will jointly explore potash deposits in Canada and supply it to its customers in Gujarat, sources close to the development informed.
"There is good amount of potash deposits in Canada. Solaris, jointly with Chemtura Group will explore the possibilities to mine potash and process it. For this, a potash processing facility will also be set up in Canada," said a company source privy to the development. Also, at the recently concluded Vibrant Gujarat Summit 2013 at Mahatma Mandir in Gandhinagar during 11-13 January, Craig Rogerson, president and CEO, Chemtura Group - USA had expressed the group's intentions to extend its association with Solaris Chemtech.
"We have joined partnership with Solaris Chemtech in Gujarat. We will extend partnership with the company for innovation and technology aspects," said Rogerson during his address at the valedictory session of the two-day VGS summit.
Chemtura Corporation had acquired bromine assets of Solaris Chemtech for around $142 million in November 2012. The acquisition includes two manufacturing facilities and a research and development centre in Gujarat.
"With better processing technology in Canada, potash recovery can be improved by 100 per cent. Currently, Indian processors operate at around 40 per cent recovery level, while that in Canada is around 80 per cent. This will give better viability of operations and cost benefit," said a source at Solaris Chemtech.
The structure of partnership or financial details were not revealed at present.
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"If factors like chemical composition, density of potash deposits and weather conditions remain favourable, we see promising potash supplies from this venture," informed a Solaris Chemtech official.
According to the government sources, Gujarat has a large number of potash consuming industry including fertiliser units. "Many alkali industries have flourished in Gujarat due to its prominent position in salt manufacturing. Meeting the requirement of these units will be a major challenge, considering limitations of potash reserves domestically. We have to look for overseas supplies," the government official said.
Solaris Chemtech manufacturers bromine and bromine chemicals, and technical grade phosphoric acid.