Dutch chemical producer AkzoNobel has signed a Letter of Intent with integrated Indian chemical producer Atul to explore the feasibility of establishing a manufacturing joint venture for monochloroacetic acid (MCA) in India. The two companies said they plan to install a world scale MCA plant at Atul's facility in Gujarat, building on the Indian player's status as a leading supplier of crop protection chemicals that use MCA as a key raw material and the Dutch company’s leading global position in MCA with plants in the Netherlands, China, Japan and the US.

If the plans are successful, the joint venture would use chlorine and hydrogen manufactured by Atul to produce MCA, taking advantage of Atul's existing infrastructure and AkzoNobel's latest eco-friendly hydrogenation technology.

Output from the proposed facility would mainly supply the Indian MCA market, while at the same time meeting Atul’s captive requirements.

"As a company we are committed to achieving growth in India, and this cooperation presents a unique opportunity for us to participate in the Indian MCA market," said Werner Fuhrmann, AkzoNobel's executive committee member responsible for Specialty Chemicals.

For Atul, chairman and managing director, Sunil Lalbhai, said the company is “extremely passionate” about taking forward the country’s “'Make in India” initiative by bringing in “state-of-the-art, eco-friendly technologies from world class companies."