Dutch paints, coatings and specialty chemicals producer AkzoNobel has agreed to form a 50:50 joint venture with Indian chemicals manufacturer Atul for the production of monocloroacetic acid (MCA). The move follows a Letter of Intent signed in April by both companies to explore the venture’s feasibility.

Under the agreement, the partners will build an MCA facility at Atul’s site in Gujarat with an initial capacity of 32,000 t/y, although it will be designed for future expansion to 60,000 t/y. Atul will supply chlorine and hydrogen to the plant, which will use AkzoNobel’s eco-friendly hydrogenation technology.

Enough MCA will be produced to meet Atul’s captive requirements and AkzoNobel will market the excess, primarily in India. Atul is a leading global supplier of the herbicide 1,4-D, which uses MCA as a key raw material.

The investment remains subject to regulatory approvals and the signing of final agreements. Financial details were not disclosed.

An essential building block, MCA is used in a wide variety of chemicals and end-use applications including agrochemicals, adhesives, pharmaceuticals, thermo-stabilizers, surfactants and cosmetics.