INEOS and GNFC to build 600kt acetic acid plant in India

INEOS Acetyls and Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) have signed a Memorandum of Understanding to explore the feasibility of building a new world-scale 600kt acetic acid plant at the GNFC site in Bharuch, Gujarat, India.

INEOS Acetyls is an acetic acid producer and GNFC is the only acetic acid producer in India. The two companies have been technical partners for nearly 30 years but will now form a new joint venture to bring the project to market, currently expected in 2028.

David Brooks, CEO of INEOS Acetyls, said: “We are delighted to announce this news and to be working with our partner GNFC on this new project. India is considered a key growth market for our products in the coming years and this investment will increase much needed local production of acetic acid, reducing the country’s reliance on imports.”

Pankaj Joshi, Managing Director of GNFC, commented: “India imports approximately 85% of its annual acetic acid requirements. The proposed joint venture is expected to achieve the ‘Make in India’ goal. The localization of acetic acid will meet existing demand and provide the necessary impetus for other growing downstream needs, thereby saving precious foreign exchange expenditure. ”