Perstorp has unveiled plans to invest in the construction of a new Pentaerythritol (Penta) production facility in Gujarat, India. Representatives from the Perstorp Executive Leadership Team, were joined by government officials, employees and selected guests at a groundbreaking ceremony for the new plant, which was held on November 6. The world scale, green-field Gujarat plant will produce Penta, including the renewable grades of Voxtar™, providing up to 60 percent reduced carbon footprint.
Construction of the Gujarat plant has started in October this year, with commercial production planned to start in Q1 2022. When fully operational, the site will employ 120 people. The investment will significantly expand Perstorp's Penta production capacity, designed to produce 40 KT of Penta per annum from 2022.
Penta has a vast range of application areas being an essential building block ingredient in coatings, as well synthetic lubricants and antioxidants. The Gujarat investment will reinforce Perstorp's ability to meet growing demand, particularly in Asian markets, as well as offering various Penta qualities including Penta Mono and Di-Penta and in addition Calcium Formate.
Jan Secher, President & CEO: "Perstorp is the global market leader in Penta and the market demand for these products is steadily growing. The new Penta plant in India marks a major milestone in our growth strategy and we are confident that this will not only increase the security of supply for current as well as new customers but aslo further strenghten our position long term as a sustainable and reliable partner in this region".
"India is a strategic market with a growing demand for coatings. The expansion here is a perfect complement to Perstorp's existing Penta production in Germany, the USA and Sweden. Already in February 2016, Perstorp signed a Memorandum of Understanding (MoU) with Maharashtra Industrial Development Corporation (MIDC), as a step in evaluating the opportunity to invest in a new world scale production plant for Penta here in India. However, after a thorough evaluation process, Gujarat was selected as the location," said Divakaran Kaiprath, Managing Director, Perstorp India.
Magnus Heimburg CFO, commented: "As a chemical company, our strategy is to maximize value from our production plants, and find smarter ways to increase capacity within the existing facilities. However, this investment is critical for us to make a major leap in terms of growth. It is our firm belief that this is the right time and place to expand our business."
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