Akzo Nobel and Atul to set up Indian MCA partnership Joint Investment in MCA Production

Akzo Nobel and Atul have announced their intention to jointly invest in the production of monochloroacetic acid (MCA) in India, which will include setting up a world class MCA plant at Atul's facility in Gujarat.

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The partnership will build on Atul's status as a global supplier of the herbicide 2,4-D (which uses MCA as a key raw material), and Akzo Nobel's position in MCA markets, with plants in the Netherlands, China, Japan and the US. The investment is subject to regulatory approvals and signing of final agreements. Each partner will hold a 50 % stake.

The partnership will use chlorine and hydrogen manufactured by Atul to produce the MCA, taking advantage of both Atul's existing infrastructure and thehydrogenation technology supplied by its new partner. From an initial annual capacity of 32 kilotons at start-up, the plant has been designed for future expansion to 60 kilotons. The plant will produce enough MCA to meet the captive requirement of the Indian company; AkzoNobel will market the rest of it, primarily in India.

MCA is an essential building block in the chemical industry and is used in a wide variety of chemicals. Customers use MCA to produce thickening agents for the food, oil, mining, personal care and detergent industries. The product is also used in agrochemicals, adhesives, pharmaceuticals, thermo-stabilizers, surfactants and cosmetics.

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