Gandhinagar, Gujarat, India - April 16, 2008
Dow Europe GmbH (Dow), a wholly owned subsidiary of The Dow Chemical Company, and Gujarat Alkalies and Chemicals Ltd (GACL), a company promoted by Government of Gujarat, announced today the signing of a Joint Venture Agreement (JVA) for the construction, operation and ownership of a 200 kilotons per year chloromethanes manufacturing facility in Gujarat, India. The agreement allows Dow and GACL to complete a study, begin work on definitive agreements and work towards financial closure which is estimated to be completed by late 2008. Estimated to be operational in 2011, the new production unit would be located at Dahej, Gujarat on the western coast of India. The parties will form a 50:50 joint venture company to manage local permitting processes.
“Being here in India, and understanding the growth prospects for both our companies, as well as this region, is very exciting. This is yet another example of our commitment to meeting the needs of our customers through establishing joint ventures with strategic partners, using an asset-light investment approach,” said Michael R. Gambrell, executive vice president, Basic Chemicals and Plastics for Dow. “As GACL – India’s largest chlor-alkali producer, and Dow –the world’s largest producer of chemicals and plastics and the world's largest supplier of chlorinated organic products and services, form a joint venture company and enter into negotiation of the definitive agreements for this project, we do so against the all-important backdrop of sustainability.”
“The new investment through this Joint Venture between Gujarat Alkalies and Chemicals Ltd. (GACL) and Dow Europe GmbH is a significant development. This will give a push to the down stream users in the pharmaceuticals, paints and grease removal, refrigerant and solvent sector by making raw materials available at more competitive rates and bringing valuable Forex to the country,” said Shri Saurabhbhai Patel, Minister Of State for Energy & Petrochemicals, Government Of Gujarat.
“We are happy to be associated with Dow to work on this project, which will help the country to achieve its commitments as a part of the Montreal Protocol, to which India is a signatory,” said Dr. Manjula Subramaniam, Chairperson, GACL and Chief Secretary, the Government of Gujarat. She further informed that the association of GACL with Dow would result in various business avenues for the State. “Dow’s best-in-class process technology to produce chloromethanes will help to minimize production of carbon tetrachloride (CTC). The JV will also be able to convert the total CTC production, not only from this facility, but CTC produced in India, into a valuable product, a major breakthrough for India’s chemical industry.”
“It also gives me pleasure to announce today that, in keeping with Dow’s 2015 Sustainability Goal to Contribute to Community Success, we are contributing Rs. 75 Lakh to purchase the equipment to provide clean drinking water to over 10,000 residents of three neighboring villages of Jolwa, Suva and Vadadla by using Dow technology. We plan to offer this facility to other neighboring villages in the months to come,” Gambrell continued.
Chloromethanes are used as an intermediate in the production of fluorocarbons and fluoropolymers, and as a solvent in pharmaceutical manufacturing, metal cleaning/degreasing, and other chemical processing applications. GACL will supply feedstock and power and lease land to the joint venture, while Dow will license its production technology and marketing and sales expertise. The joint venture will market its products primarily to countries who are members of the South Asian Association for Regional Cooperation (SAARC).
About Dow Europe GmbH
Dow Europe GmbH is a wholly owned subsidiary of The Dow Chemical Company. With annual sales of $54 billion and 46,000 employees worldwide, Dow is a diversified chemical company that combines the power of science and technology with the "Human Element” to constantly improve what is essential to human progress. The Company delivers a broad range of products and services to customers in around 160 countries, connecting chemistry and innovation with the principles of sustainability to help provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. References to “Dow” or the “Company” mean The Dow Chemical Company and / or its separate but consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com.
About GACL
Gujarat Alkalies and Chemicals Limited (GACL) was incorporated on 29th March, 1973 in the State of Gujarat by Gujarat Industrial Investment Corporation Limited (GIIC), a wholly owned company of Govt. of Gujarat, as a Core Promoter. GACL has two units located at Vadodara (Baroda) and Dahej , both in the State of Gujarat. It has integrated manufacturing facilities for Caustic Soda, Chlorine, Hydrogen Gas, Hydrochloric Acid, Chloromethanes, Hydrogen Peroxide, Phosphoric Acid, Potassium Hydroxide, Potassium Carbonate, Sodium Cyanide, Sodium Ferrocyanide, Aluminium Chloride, Poly Aluminium Chloride, CPW etc. Its manufacturing capacity for caustic soda is 412500 tonnes per annum and is the largest in India. The Dahej unit also has 90 MW Captive Power Plant (CPP) for regular and economical power supply. More information about GACL can be found at www.gacl.com.
For Editorial Information:
Jeannine Sohayda
The Dow Chemical Company
1-989-636-8485
David Winder
The Dow Chemical Company
1-989-638-0745
V. L. Vyas
Gujarat Alkalies & Chemicals Ltd
+91-9979890115
vlvyas@gacl.co.in
