BASF, Adani Evaluate EUR2 Billion Acrylics Investment in India
January 17 2019 - 5:19AM
Dow Jones News
By Nathan Allen
BASF SE (BAS.XE) and Adani Enterprises Ltd. (512599.BY) have
signed a memorandum of understanding to evaluate a 2 billion euro
($2.28 billion) joint investment in acrylics production in India,
the companies said Thursday.
The investment would be BASF's largest investment in India to
date, and a feasibility study should be completed by the end of
2019, the companies said in a joint release.
The two companies would create a joint venture in which BASF
would hold a majority stake, with the plan to develop an integrated
production site in the port of Mundra, in India's Gujarat
province.
BASF and Adani said the site would include production plants for
several upstream acrylic products and potentially other downstream
products.
Output from the plants would be destined for the Indian market,
predominantly for the local construction, automotive and coatings
industries, the companies said.
Rapid expansion of India's middle class has led the country to
import large quantities of petrochemicals, depleting its
foreign-exchange reserves. The joint venture should help meet some
of this demand and reduce the country's reliance on imports, Adani
Group Chairman Gautam Adani said.
Write to Nathan Allen at nathan.allen@dowjones.com
(END) Dow Jones Newswires
January 17, 2019 05:04 ET (10:04 GMT)
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