GNFC inks pact with INEOS of UK for new acetic unit in India

21 Nov 2024 , 08:51 AM

Gujarat Narmada Valley Fertilisers & Chemicals Ltd (GNFC) announced on Wednesday (20 November) that it has signed a memorandum of understanding (MoU) with INEOS Acetyls International Ltd, UK, to investigate the feasibility of building a world-scale, 600kt acetic acid plant at GNFC’s site in Bharuch, Gujarat, India.

INEOS Acetyls is the world’s leading producer of acetic acid, whereas GNFC is the only current manufacturer in India. The two corporations have had a technology cooperation for nearly 30 years, but will now form a new joint venture (JV) to bring this project to market, which is currently expected in 2028.

In order to do this, GNFC and INEOS Acetyls International established a joint venture in India. According to the agreement signed on November 20, 2024, each partner will own 50% of the shares in the joint venture. The joint venture intends to build and run a world-scale acetic acid plant in India, as well as establish a cooperative marketing structure for product sales and distribution.

Both GNFC and INEOS will have governance rights, including the appointment of directors and reserved items such as share subscription and capital structure modifications. While the MoU provides a structure, the JV agreement will be finalised at a later date. Following the equity investment, the joint venture will become a GNFC affiliate firm.

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