SPIC to invest $200mn in Jordan

Chennai-based Southern Petrochemical Industries Corporation (SPIC) will invest $200 million to double the manufacturing capacity of its Jordanian venture.

Indo-Jordan Chemicals Company, a 52:35 JV between SPIC, holding the majority stake, and Jordan Phosphate Mines Company, manufactures phosphate that are exported to India.

"The JV proposes to double its capacity from the existing 2.5 lakh metric ton per annum for which the company would make an investment of $200 million," A C Muthiah, chairman of SPIC,  said. The financing is being arrranged through a consortium of Jordanian banks, he added.

The combined export revenue after the new unit is commissioned would go up to $160-180 million from the existing $80-90 million, he said.

Babu Verghese, managing director of SPIC,  said the company would tie-up for the necessary funds by the end of Q2FY08. "Thereafter, it will take two years for the new plant to go on-stream," he said.

The company is also planning to manufacture food-grade and tech-grade phosphoric acid, Verghese said.