Paints and specialty chemicals firm Akzo Nobel N.V. (AKZA.AE) said Thursday it and India's Atul Ltd. are exploring the feasibility of setting up a manufacturing joint venture to produce monochloroacetic acid, which is used in a wide variety of chemicals.

The Amsterdam-based company, which lists Dulux, Sikkens, Interpon and Eka among its brands, said two companies plan to install a plant at Atul's facility in Gujarat, subject to the necessary regulatory approvals.

The intended joint venture will use chlorine and hydrogen manufactured by Atul to produce monochloroacetic acid, taking advantage of Atul's existing infrastructure and AkzoNobel's latest eco-friendly hydrogenation technology.

Monochloroacetic acid is an essential building block in the chemical industry and is used to produce thickening agents for the food, oil, mining, personal care and detergent industries. It is also used in agrochemicals, adhesives, pharmaceuticals, thermo stabilizers, surfactants and cosmetics.

-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

(END) Dow Jones Newswires

April 28, 2016 06:14 ET (10:14 GMT)