INEOS Acetyls signs non-binding agreement with Indian company which may lead to increased production of vital chemical

INEOS Acetyls is considering building a new world-scale plant in India to increase production of a chemical used in cooking, cleaning, medicine and food. The acetic acid plant would be built in partnership with Gujarat Narmada Valley Fertilizers & Chemicals Ltd at its site in Bharuch, Gujarat.

The two companies, which have enjoyed a technology partnership for almost 30 years, have now signed a non-binding agreement to explore the possibility of the new plant and formed a joint venture to help make it happen by 2028.

“We are delighted to be working with our partner GNFC on this new project,” said David Brooks, CEO of INEOS Acetyls. “India is recognised as being a key growth market for our products over the coming years.”

The plant would be capable of producing 600,000 tonnes of acetic acid each year and, more importantly, help India to reduce its reliance on imports.

“We currently import 85% of the acetic acid we need,” said Pankaj Joshi, managing director of GNFC, which is the only current producer of acetic acid in India.

Increasing production of acetic acid will help India in its desire to see more products stamped with ‘Made in India’. David said INEOS’ investment would increase that much-needed locally-produced acetic acid.

INEOS Acetyls is currently the leading producer of acetic acid globally. It has eight production sites across Europe, the US and Asia. Its UK Saltend Chemicals Park site in Hull is the largest producer of acetic acid, acetic anhydride and ethyl acetate in Europe, and INEOS Acetyls America has been a leading supplier of acetic acid and acetic anhydride to North and South America for more than 45 years.