New Delhi – Mitsui Chemicals plans to hike bio-polyol capacity by almost four times, and open a second systems house in India. However, the Indian market will have to recover first.
Mitsui owns a stake in a biopolyol joint venture, Vithal Castor Polyols, in Jhagadia, Gujarat, through its MCNS joint venture with Korea's SKC Polyurethanes.
The site has a designed capacity of 8 kT/year biopolyols. These are based on non-edible castor oil plants.
Speaking at the recent Auto Expo 2020, a source familiar with the plan said: 'There is certainly a plan to add another 24,000 tons capacity to the site. But market forces would determine further expansion. Considering the domestic market, it is difficult to comment on when it will happen.'
The source also confirmed that MCNS's PU systems house in Sri City, Andhra Pradesh started commercial operations in 2018. This has 15 kT/year capacity.
'The Sri City site is utilising around 70% of the capacity at the moment. It is supplying materials for Hyundai & Kia. More clients are in the pipeline and plant is soon likely to operate to the capacity,' they added.
When asked if there is any plan for another PU systems house, the executive confirmed, 'There is a plan for one in the western part of the country.'
