Clariant and India Glycols Form Renewables JV
Clariant and India Glycols Limited (IGL) are forming a joint venture for renewable ethylene oxide (EO) derivatives. To support production, IGL has entered into long-term supply agreement for EO made from bio-ethanol as well as further utilities.
The companies said they expect the JV, to be owned 51% by Clariant International and 49% by IGL, to become a leading supplier of renewable materials to the rapidly growing consumer care market in India and neighboring countries.
“This opportunity to partner with India Glycols is an important step in Clariant’s journey to strengthen our core portfolio, while adding value with sustainability. It enhances the capacity of our Industrial and Consumer Specialties business in India and beyond, whereas the access to renewable ethylene oxide broadens our global offering to customers and this makes Clariant a leader in “green” ethylene oxide derivatives”, said CEO Conrad Keijzer.
Under the terms of the agreement, IGL will contribute its renewable bio-EO derivative business to the JV, which comprises a multipurpose production facility that includes an alkoxylation plant in Kashipur, Uttarakhand.
In return, Clariant will contribute its local Industrial and Consumer Specialties business in India, Sri Lanka, Bangladesh and Nepal, as well as an (undisclosed) net cash payment for majority ownership in the venture.
Christian Vang, global head of Clariant’s business unit Industrial & Consumer Specialties, said the Swiss company sees “opportunities for profitable growth based on strong local organic demand as well as the global megatrend for renewable products.”
Author: Elaine Burridge, Freelance Journalist
