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Speciality Chemicals KCI and Momentive Sign Cooperation Agreement
Kanoria Chemicals & Industries (KCI) has recently signed a non-binding Memorandum of Understanding (MoU) with Momentive Specialty Chemicals (Momentive Specialty Chemicals) with the aim of forming a Joint Venture (JV) for manufacture and sale of specialty phenolic resins, Formaldehyde and Hexamine...
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(Picture: Momentive)
New Delhi/India - The JV Company, as per the MOU, will construct a new phenolic resin plant at KCI’s existing production facility at Vishakhapatnam, Andhra Pradesh. In addition, for a cash consideration, KCI would transfer its currently existing manufacturing facility in Visakhapatnam to the proposed JV, while Momentive Specialty Chemicals would provide technology supporting its specialty phenolic resins, Formaldehyde and Hexamine businesses, as well as its current business in India, to the JV. It is envisioned that both parties would have equal (50%) ownership of the JV. The companies would work to identify and evaluate additional growth opportunities for specialty chemicals in such vertical markets as automotive, industrial and construction.
“The end markets for specialty phenolics and Formaldehyde continues to grow rapidly in India and the proposed JV would leverage the proven approach of combining technology and application development with world-class manufacturing expertise,” said R.V. Kanoria, Chairman & Managing Director, Kanoria Chemicals & Industries Ltd.
“India is a Critical market for Speciality Chemicals”
“We are pleased to have the opportunity to partner with KCI, a leading manufacturer of chemical intermediates in India”, said Craig O. Morrison, Chairman, President and CEO, Momentive Specialty Chemicals. “India is a critical market for specialty chemicals and the MoU represents another example of our commitment to strategically invest in the region with our strategic JV partner”.
As the market leader for Formaldehyde and Hexamine in India, KCI brings extensive knowledge of the Indian market. Momentive Specialty Chemicals is the global leader in thermoset resins with facilities in over 30 countries, and brings significant technological expertise and international exposure.
(ID:42434918)
:quality(80)/images.vogel.de/vogelonline/bdb/1607400/1607403/original.jpg "Specialty chemicals are materials manufactured on the basis of the unique performance or function and provide a wide variety of effects on which many other sectors and end-use products rely.")
:quality(80)/images.vogel.de/vogelonline/bdb/1795900/1795979/original.jpg "Under the MOU, Dow will provide its material science and application development expertise to Lucro who will develop and manufacture the film structures.")