Haldia (West Bengal), Aug 26 (IANS) With the unveiling of the Rs. 17 billion second facility at this port town of West Bengal, Mitsubishi Chemical Corporation (MCC) is set to make India a major production base for purified terephthalic acid (PTA) by April 2008.
'As part of the policy of expanding business in a growing market MCC has promoted its PTA business in Japan, South Korea, Indonesia and India.
'The expansion in India and construction of the 600,000 KT plant at China envisages the growing potential in those markets,' T. Niikuni, managing executive, MCC, said.
He along with West Bengal Chief Minister Buddhadeb Bhattacharya Saturday laid the foundation for the second phase of expansion in Haldia, about 128 km from Kolkata in East Midnapore district. The first phase of the project was commissioned in 2000 by the MCC's Indian subsidiary MCC PTA India Corporation Private Limited.
'The demand for PTA in India is expected to reach an annual growth rate of 10 percent 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 800,000 tonnes at Haldia would take the total production capacity in the plant to 12,70,000 tonnes from 470,000 tonnes at present, Niikuni said.
Assuring all help to the company, Buddhadeb Bhattacharjee said the second phase of expansion makes the project the largest Japanese FDI in India.
MCC initially invested Rs. 14.75 billion to set up its first plant with 350,000 tonnes capacity, which was later hiked to 470,000 tonnes capacity.
The chief minister said the state-owned West Bengal Industrial Development Corporation would participate in the second phase expansion project with Rs. 1,800 million investment and minor stake in the MCC subsidiary MCC PTA India Corporation Private Limited.