IOC Signs Licensing Agreement with Mitsubishi Chemical Corporation

Indian Oil Corporation (IOC) has signed an agreement with Mitsubishi Chemical Corporation (MCC), Japan for sourcing technology & associated services for an acrylic acid unit at Dumad, Gujarat, which will also include a butyl acrylate plant. The acrylic acid plant will have a capacity of 90-ktpa and the butyl acrylate plant 150-ktpa.

The technology licensing agreement was signed on April 19, 2018 by Mr. A.N. Jha, Executive Director (Petrochemical-Projects) and Mr. Masaya Nomamoto, General Manager, C3 Derivatives Department, Petrochemicals Business Domain, Mitsubishi Chemical Corporation, Japan, in the presence of senior officers from IOC and MCC.

Acrylic acid and butyl acrylate are suitable for use in super absorbent polymers for disposable diapers, coating compositions, and adhesives. Global demand for these chemicals is growing at an annual rate of more than 5%, with Indian demand growing even faster in double-digits.

MCC launched the development of a process for producing acrylic acid and acrylic acid esters from propylene in 1962, and built the first commercial plant based on the process at the Yokkaichi (Japan) in 1973, which operates to date. The technology has been licensed in a total of more than 10 cases in the world. With currently no domestic production of acrylic acid and butyl acrylate, these products are entirely imported into India. This project is hence a drive towards import substitution and further will consolidate the specialty chemical business of IOC.

Within a short period of time, IOC has established itself as the second largest petrochemical player in India, with a wide range of products having a total capacity of 2.5-mtpa. The oil refiner’s petrochemical business has contributed significantly to both the top-line and the bottom-line of IOC in recent years. Upcoming petrochemical projects include a 680-ktpa polypropylene plant and a 365-ktpa ethylene glycol project at the Paradip Refinery.

IOC Signs Licensing Agreement with Mitsubishi Chemical Corporation