August 30, 2008

AV Birla to set up INR 600 crore carbon black unit in Mexico

PTI reported that the Aditya Birla group is close to signing a land deal with the port authority of Altamira in eastern Mexico to set up a carbon black plant with an investment of USD 150 million.

Mr Surendra Goyal AV Birla Group’s joint president in Latin America said that "We may sign the agreement next week. The USD 150 million project will be completed in 2 years." He added that an area near the port in the Mexican state of Tamaulipas is picked as an entry point to the US, where naphtha is cheaper.

The Aditya Birla group has a capacity to produce 750,000 tonnes of carbon black per annum, which makes it the world’s 4th largest manufacturer of the material. It has carbon black units at Alexandria in Egypt, a unit in Thailand and in China. In India, it has two plant in Uttar Pradesh and Tamil Nadu with a combined capacity of 230,000 tonnes annually.

The Aditya Birla group has planned an investment of about USD 600 million to ramp up its carbon black manufacturing capacities in India and abroad, aiming to increase its market share in the competitive industry. It is also planning to set up a plant in Oman.