INEOS Acetyls and Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) have signed an Memorandum of Understanding (MoU) to explore the feasibility to build a new world-scale acetic acid plant at GNFC's site in Bharuch, Gujarat, India. INEOS Acetyls is a producer of acetic acid globally and GNFC is the only current producer of acetic acid in India. The two companies have held a technology partnership for close to 30 years but will now establish a new joint venture which will manage bringing this project to market, currently forecast in 2028.
David Brooks, CEO INEOS Acetyls, commented: "We are delighted to make this announcement today, working with our partner GNFC on this new project. India is recognised as being a key growth market for our products over the coming years and this investment will increase much needed locally produced acetic acid, reducing the country’s reliance on imports.”
Pankaj Joshi, MD GNFC commented that India imports approximately 85% of its annual requirements of acetic acid. Domestication of acetic acid will serve existing demand and provide a required boost to other evolving downstream demands saving precious foreign exchange outgo.