Tata Chemicals-led TCEL approves ₹655 Crore investment

13 Nov 2024 , 09:19 AM

Tata Chemicals Ltd has announced a £60 Million (roughly ₹655 Crore) capital investment to develop a new pharmaceutical-grade sodium bicarbonate factory in Northwich, United Kingdom.

Tata Chemicals Europe Ltd’s board has approved the plant, which will have an annual production capacity of 180,000 tonnes and is expected to treble TCEL’s pharmaceutical-grade sodium bicarbonate output in the UK. Construction is anticipated to commence in 2025, with production scheduled for 2027. The investment will be funded via a combination of internal accruals and debt options.

The new factory will use a proprietary technology that combines carbon dioxide extracted from energy generation emissions, in line with sustainability aims and satisfying pharmaceutical companies’ growing need for high-grade sodium bicarbonate used in medications and haemodialysis.

As part of the restructuring process to support this new investment, TCEL’s board has approved the discontinuation of chemical production at its loss-making Lostock plant, which is planned to occur by the end of January 2025, subject to necessary employee consultation. The Lostock factory generated around ₹1,200 Crore, or 8% of Tata Chemicals’ revenue in the previous fiscal year.

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