Essar, France's Akrema plan acrylics JV in Guj

Essar Chemicals may form a joint venture with French chemical company Akrema to set up a acrylic acid production facility in Gujarat.

The two companies have signed an memorandum of understanding (MoU) to study the feasibility of forming a 50:50 joint venture for production and commercialisation of acrylic acid and esters, Essar said in a statement.

Essar is planning to supply propylene to the proposed plant at Vadinar in Gujarat from its oil refinery nearby. The plant is expected to start operations by 2010.

"Essar Group is firmly on the path of expanding value chain in all their businesses and entry into this business would further enhance potential of Essar Oil's refinery from where main feedstock propylene will be supplied for acrylic complex," Anshuman Ruia, director, Essar Group, said.

The unit should be the first acrylic acid plant to be built in India and would serve the fast growing acrylic market in this part of the world. Its location would be suitable to supply to both the Indian and Asian markets, Henri Dugert,
acrylics business unit group president, Akrema said.