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| March 10, 1997 |
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| Business Plans for PTA (High-Purity Terephthalic
Acid) in India |
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| Mitsubishi Chemical Corporation |
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Mitsubishi Chemical Corporation (Head Office: Chiyoda-ku, Tokyo, President:Akira
Miura) is entering the final stage of formalizing business plans for PTA (High-Purity
Terephthalic Acid) in India.
A Memorandum of Understanding (MOU) concerning a joint venture was concluded with
West Bengal Industrial Development Corporation Limited (WBIDC) on Feb. 11th,Mitsubishi
Chemical's partner in India. This memorandum confirmed that Mitsubishi Chemical
will provide 51% or more of the capital for the new venture, with 5% of the capital
being provided by WBIDC. Currently, applications have been submitted to the proper
government authorities for establishment of the new company in India. Many companies
other than Mitsubishi Chemical WBIDC have expressed interest in investing in the
new company, including a number of trading companies.
Plans call for construction of the plant to begin in September this year at a
site in Haldia, West Bengal, with completion scheduled for 1999. The majority
of the yearly production capacity of 350 thousand tons will be sold in India,
but a portion will be exported.
The current demand for PTA in India is approximately 500 thousand tons. Its main
applications are textiles, PET bottles and film. Future growth is predicted to
be extremely high, with demand increasing by approximately 20% per year. This
project has been created in response to strong demand from customers.
The global demand for PTA continues to grow, with especially high growth exhibited
in India and China which have high rates of economic growth. The market for PTA
in India is projected to reach 1 million tons by the end of 1999 when the production
facilities covered by this project are completed. Mitsubishi Chemical is confident
that the new company will represent a strategical element in its PTA business.
| For further information, please contact |
| Mitsubishi Chemical Corporation, |
| Public Relations Dept., |
| Tel: [+81] 3-3283-6274 |
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