India/China: Chemicals Production Cabb Group Restructures Asian Production Sites

Fine chemicals specialist Cabb announced that the group will be strategically realigning its production in Southeast Asia.

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Sulzbach/Germany — As such, effective July 27, 2017, the group is selling its Indian production site for monochloroacetic acid to local family company Anugrah, who have been active in the Indian and Southeast Asian market for monochloroacetic acid since 2001. The production site in Ahmedabad uses crystallization technology to manufacture standard quality MCA for local markets.

The Group is also investing around € 5 million in expanding the capacity of its high-purity MCA plant in Jining, China. This is an overall increase of a third on the original € 15 million invested in establishing the plant.

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According to the company, the plant in Shandong province, which began operation in spring 2016, is one of the most modern MCA production facilities in Southeast Asia. From its optimal location, it supplies both local customers and multinationals in the greater Beijing and Shanghai regions.

“We’re continuing to strategically develop our Acetyls Business Unit into a market leader for high purity monochloroacetic acid and its derivatives, which we primarily supply to international brand manufacturers in industries such as personal care and food,” comments Cabb’s CEO Peter Vanacker.

“To do this, we’re creating the ideal industrial structure with large integrated sites based on leading-edge technology. Selling the more traditional production site in India and expanding our highly modern plant in China are important steps in implementing this strategy. With its new owner Anugrah, the previous Cabb India is becoming part of an established and respected company in the local market.”

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