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| Chemplast Sanmar Ltd |
| Chemplast acquires Caustic Soda facility at Karaikal |
| Chemplast Sanmar Limited has acquired the Caustic
Soda/ Chlorine manufacturing facility of Kothari Petrochemicals Limited
located at Karaikal in the Union Territory of Pondicherry. This strategic
acquisition was completed on 1st August 2003. The facility can be
operated to produce 100 tons per day (TPD) of caustic soda. |
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| A view of the Karaikal facility |
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| Using the chlorine available at the Karaikal
plant, Chemplast is implementing a project to manufacture Ethylene
Di-chloride (EDC), the basic feedstock for the manufacture of
PVC. Initially basing its manufacture of EDC on imported alcohol,
Chemplast will in time switch over to importing ethylene, which
will require the setting up of a Main Terminal Facility (MTF)
near the plant site. The project, estimated to cost close to
Rs.200 crore, will be set up in stages and fully completed in
the first quarter of 2005. However, the benefit of captive chlorine
at low cost is now available to the company’s PVC division. |
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| The strategic decision to set up a shore based EDC
facility using imported ethylene will ensure availability of EDC on
a sustainable basis at an appropriate cost. This will also enable
the company to move away from using alcohol whose availability and
price are subject to domestic vicissitudes. |
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Senior Chemplast officials seen at a puja to
mark the inauguration of the Karaikal office. P U Aravind,
V Ramesh, and S Venkatesan . |
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| V Ranganathan, P U Aravind and S B Prabhakar
Rao. In the background is P Vasudevan, legal consultant. |
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