GACL, Dow join hands to invest Rs 6,000-mn

Ahmedabad: State-owned Gujarat Alkalies and Chemicals (GACL) has signed an agreement with Dow Europe GmbH to set up a 50:50 joint venture for manufacturing 2,00,000 tonne per annum (TPA) of chlorinated organics at Dahej (Gujarat). The JV will invest Rs Rs 600 crore on the project.

GACL will supply around 600 metric tonnes of chlorine per day to the JV company.

Dow produces chloromethane at four sites around the world with a total capacity of 5,00,000 metric tonnes per annum.

GACL board recently approved expansion projects worth Rs 1,200 crore.

As per the agreement, GACL will supply around 600 metric tonne of chlorine per day to the JV. The synergy of GACL and Dow will lay a strong foundation for mutual growth in future, said GACL, which is the largest caustic soda maker in the country.

Dow Europe GmbH is a wholly owned subsidiary of The Dow Chemical Company. Dow is a global leader in chemical industry and the largest supplier of chlorinated organic products. It currently produces chloromethane at four sites around the world with a total capacity of 5,00,000 metric tonne per annum. The JV company will primarily cater to the demand of the Saarc countries.

GACL has been aggressively expanding its capacity. Its board of directors has recently approved expansion projects worth Rs 1,200 crore.

Recently, a UAE-based entity had approached GACL for establishing a caustic soda plant there, for which GACL is carrying out a market survey.