German plastics additives manufacturer Baerlocher is spending $30 million to double production capacity at its Indian subsidiary by 2021.

The company, which regards itself as India’s largest producer of PVC stabilizers, said the investment “demonstrates its commitment to the buoyant Indian plastics industry,” supporting its growth and allowing plastics processing industry customers to make the transition towards sustainable calcium-based stabilizer systems for all PVC applications.

Baerlocher has been active in India since acquiring the plant at Dewas, near Indore in the state of Madhya Pradesh, from National Peroxide in 1999.

The first phase of the expansion, which also includes a new warehouse, will lead to an “immediate increase” in its lead- and calcium-based stabilizer production capacity, the company said. The project is currently in the final phase of construction and due to be commissioned by mid-2019.

A recent purchase of land adjacent to the current facility will provide the base for the next phase, which will see construction of a new plant dedicated exclusively to producing calcium-based stabilizers and metal stearates. A research and development laboratory is also part of the investment.

The expansion plans show that Baerlocher is committed to its customers and supports the government’s “Make in India” campaign, said Jayen Modi, managing director of Baerlocher India. The company sees demand for PVC in India growing annually at an estimated 7-8%, driven by growth in the agricultural and infrastructure sectors.