Energy and engineering major Thermax has signed a technology purchase aggrement with US-based Georgia Pacific to procure from the latter technology to make speciality chemicals directed at the paper manufacturing industry in India and South East Asia.Atlanta, Georgia based $80 billion Georgia Pacific will supply technology for performance enhancing chemicals which find extensive applications in the paper industry. This technology license agreement will will enable Thermax to improve the competitive edge of its clients by improving productivity, reducing raw material costs and minimising plant down-time while enhancing quality and safety," M S Unnikrishnan, MD, Thermax said.The Rs 2200 crore Thermax has business relationships with a number of paper manufacturers as a supplier of boilers and performance chemicals. "This addition to its portfolio will increase the value added by the company to the clients' business, something that will reflect on the profitability of company," Unnikrishnan said.The agreement entiles Thermax to sell Georgia Pacific products to paper manufacturers in India as well as South East Asia. It will manufacture the chemicals at its facilities at Chinchwad, near Pune, Unnikrishnan said.Peter Williams, VP, Georgia Pacific, said: "The chemicals which will be manufactured by Thermax will - among other things - allow the pulp fibre to hold and integrate better, improve surface printability and wiping efficiency depending upon the kind of paper which is being made. Thermax will offer this expertise in combination with its own portfolio of technologies and products to offer a meaningful advantage to paper and paper product manufacturers in India and South East Asia."The technology agreement will be in force for seven years and Georgia Pacific will offer continuous upgradation to Thermax during this period besides offereing specific solutions to customise the product, Unnikrishnan said. He declined to disclose financial details of the deal including the fee Thermax would be paying Georgia Pacific.The indian industry produces 6 million tonne of paper and paper board annually, including newsprint, at 600-odd paper mills which together have an installed capacity of 8 million tonne. The estimated market for speciality paper chemicals in India is approximately Rs 390 crore and about Rs 1600 crore in the Asia Pacific region, he added.Thermax will import the chemicals for the first few months from Georgia Pacific and start making them here once the systems are stabilised. The South East Asia operations will be set up in Indonesia, Malaysia and Thailand in that order of preference. The company plans to set base in South East Asia. The operation, part of the company's internationalisation programme, should commence within 18 months, Unnikrishnan said.
