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India : MOMENTIVE, KANORIA joins forces on new phenolic plant
Publish Date : 29-Oct-2013
Momentive Specialty Chemicals Inc., currently declared that it has inked a non-binding Memorandum of Understanding (MOU) with Kanoria Chemicals & Industries Limited ("Kanoria") for forming a joint venture ("JV") which would build a new phenolic specialty resins plant in India at Kanoria's existing production facility at Visakhapatnam, Andhra Pradesh.
As per the contract, for a cash consideration, in Visakhapatnam, Kanoria would transfer its existing manufacturing facility to its partner, while Momentive would offer technology that supports its specialty phenolic resins, formaldehyde and hexamine businesses, and present concern in India, to the JV. It is envisioned that both parties would have equal (50%) ownership of the JV.
"We are pleased to have the opportunity to partner with Kanoria, a leading manufacturer of chemical intermediates in India," said Craig O. Morrison, Chairman, President and CEO. "India is a critical market for specialty chemicals and the MOU represents another example of our commitment to strategically invest in the region."
"The end markets for specialty phenolics and formaldehyde continue to grow rapidly in India and the proposed JV would leverage the proven approach of combining technology and application development with world-class manufacturing expertise," said R. V. Kanoria, Chairman and Managing Director, Kanoria Chemicals.
Further, MoU is just an initiative taken to form the contemplated JV, outlining the main principles around which the JV should be structured, though both parties are committed to further pursuing this transaction.
