INEOS Acetyls ink an MoU with GNFC to gauge the production of a large-scale Acetic Acid plant in Bharuch, Gujarat

INEOS Acetyls and Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) have entered into an agreement to evaluate the development of a large-scale Acetic Acid production facility in Bharuch, Gujarat. The proposed plant is expected to have an annual production capacity of 600,000 tonnes, aiming to meet India’s rising demand for Acetic Acid. The project is anticipated to become operational by 2028.

This collaboration builds on a longstanding technology partnership of nearly 30 years between INEOS Acetyls, a prominent global producer of Acetic Acid, and GNFC, India’s sole domestic producer of the chemical. Together, they plan to establish a joint venture to manage the project, focusing on enhancing local supply chains and reducing the country’s heavy reliance on imports.

Currently, India imports approximately 85% of its Acetic Acid requirements. Pankaj Joshi, Managing Director of GNFC, emphasized that this venture aligns with the government’s ‘Make in India’ initiative, aiming to reduce foreign exchange outflows and boost downstream industries. He highlighted that domestically produced Acetic Acid would address existing market needs while supporting emerging demand across various sectors.

David Brooks, CEO of INEOS Acetyls, expressed enthusiasm about the partnership, describing India as a key market for the company’s growth. He noted that the new facility would significantly enhance local production capacity and strengthen the supply chain for Acetic Acid within the region.

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The proposed facility is expected to play a pivotal role in meeting India’s industrial requirements while fostering economic growth and reducing import dependency. Both companies aim to capitalize on this opportunity to support sustainable development in the Acetic Acid market.