Mitsubishi to make India major production base

Haldia, Aug 26: Mitsubishi Chemical Corporation(MCC) is planning to make India a major production base for purified terephthalic acid (PTA) by expanding capacity at its subsidiary MCC PTA India Corporation Private Limited with the setting up of its second facility at Haldia at a cost of Rs 1700 crore by April 2008.

''As part of the policy of expanding business in a growing market MCC has promoted its PTA business at Japan, South Korea, Indonesia and India. The expansion in India and construction of the 6,00,000 KT plant at China envisages the growing potential in those markets,'' T.

Niikuni, managing executive-chemical derivatives MCC said while unveiling the foundation for the second phase of expansion here.

''The demand for PTA in India is expected to reach an annual growth rate of 10 per cent or more. With the abolition of quota for textile products under the WTO in January 2005 export volumes from India to Europe and America are also expected to grow steadily,'' he said.

The phase II expansion of 8,00,000 tonnes at Haldia would take the total production capacity in the plant to 12,70,000 tonnes from 4,70,000 tonnes at present, Niikuni said.

Speaking on the occasion West Bengal Chief Minister Buddhadeb Bhattacharjee said the second phase of expansion with Rs 1700 crore investment would make the project the largest Japanese FDI in India.

MCC initially invested Rs 1475 crore to set up its first plant with 3,50,000 tonne capacity, which was later hiked to 4,70,000 tonnes capacity.

The chief minister said the state's industrial promotion agency WBIDC would participate in the second phase expansion project with Rs 18 crore investment and minor stake in the MCC subsidiary MCC PTA India Corporation Private Limited.

UNI