RIL to commission SM Dyechem unit by March

Reliance Industries will commission the newly acquired mono-ethylene glycol (MEG) division of SM Dyechem Ltd by March 2005, just within three months of taking over the plant.

The plant at Kurkumbh near Pune, with a capacity of 80,000 tonne per annum, has been shut since 1996 following the company's inability to pay its dues to secured creditors.

Nikhil Meswani, executive director, Reliance Industries, said the "glycol unit will be commissioned within the next three months and will produce MEG from industrial alcohol". All the other facilities of Reliance produce MEG from naphtha or natural gas.

Meswani was speaking on the sidelines of a three-day Chemtech 2005 International conference here today.

Reliance is the world's fifth largest producer of mono-ethylene glycol (MEG) having a capacity of 8,32,000 tonne per annum including IPCL's units as well as the 80,000 tonne per annum capacity of MEG from the newly acquired glycol unit from SM Dyechem.

Recently, Reliance Industries in a press release had indicated that it will utilize the produce from SM Dyechem's glycol unit for internal consumption at its polyester units at Patalganga and will also cater to the local demands in the western region.

Besides, Reliance will feed the domestic market through the MEG unit of SM Dyechem and use capacities of IPCL to export MEG in the global market.

Reliance is already a major exporter of glycol, poly propylene and polyethylenes to China. The export to China has touched $ 700 million and promises to grow further.