MOSCOW (MRC) -- IG Petrochemicals, an established market leader in Phthalic Anhydride (PA) in India, has announced a capital outlay of Rs 600 crore (USD82.6 million) to expand its PA capacity, according to Kemicalinfo.
Thus, the Board of IG Petrochemicals at its meeting held on 09 February 2021 approved the greenfield expansion of PA up to 80,000 MTPA & its Derivatives in Gujarat.
The capex will be financed through internal accruals and borrowings. The project will be completed within three years.
The company’s existing capacity is 220,000 MTPA with capacity utilization of 90%.
The company expects the demand for PA in domestic market to increase due to Govt. focus on Infrastructure spending and demand growth in downstream products like Paints, Plasticizers, Polyvinyl chloride (PVC), Unsaturated polyester resins (UPR) etc., led by good GDP growth in India.
As MRC reported earlier, India to renew antidumping duty on PA imports from Russia, removes Japan from ADD list. Latest ADD on Russian PA imports extends previous five-year period imposed in 2014; Japan removed after being deemed unlikely to resume dumping activities. The Directorate General of Trade Remedies (DGTR) of India on 5 January recommended continuing the ADD after its investigation showed that “there is likelihood of continuation or recurrence of dumping and injury if the existing ADDs are allowed to cease." he south Asian country’s previous five-year ADD on Russian PA imports expired in December 2020.
PA is used as a chemical intermediate in the production of phthalate plasticizers, saturated and unsaturated polyester resins. Phthalic anhydride is widely used in for the production of paints and varnishes and plasticizers for PVC products. In a small amount it is used in the manufacture of rubber products, tires. In addition, it is used in the light, pharmaceutical and electrical industries.
According to MRC's DataScope report, imports of suspension polyvinyl chloride (SPVC) into Russia totalled about 40,800 tonnes in 2020, down by 20% year on year. At the same time, exports decreased by 6%. December SPVC imports to Russia dropped to 0,600 tonnes from 1,600 tonnes in November. High PVC prices in foreign markets and a seasonal decline in demand in the previous two months had put a major pressure on import purchases of PVC from Russian companies.