Thermax and Brazil's OCQ Partner to Develop Performance Chemicals

Thermax Chemical Solutions Private Limited, a wholly owned subsidiary of Thermax, has entered into an exclusive shareholders' agreement with Oswaldo Cruz Química Indústria e Comércio Ltda (OCQ), one of Latin America's leading chemical companies producing resins and polymers.

Thermax will hold a majority stake of 51% in the new company, while OCQ will hold 49%. Both companies expect to create significant value, strengthen their global market presence and provide high-performance chemical solutions.

The new company will be responsible for manufacturing, trading, marketing and selling OCQ formulated materials, leveraging Thermax's existing resources, infrastructure and extensive customer base. To accommodate the new business, Thermax will transform its existing industrial plant in Jhagadia, Gujarat, India, and establish the first production line for the production of acrylic resins.

Commenting on the partnership, Ashish Bhandari, Managing Director and CEO, Thermax Limited said, “Partnering with OCQ, a leading company in the space, will help us manufacture and supply high-performance chemicals to a wide range of industries. Initially, production will focus on acrylic resins – widely used in paints, adhesives, infrastructure, textile and waterproofing industries. In future, the plant will be expanded to include polyester and alkyd resins, among others. This move marks our entry into new businesses in the chemical solutions space.”

Francisco Fortunato, Founding Partner, OCQ Group said, “We see this as a strategic move to expand our geographical presence and international reach in partnership with Thermax. Thermax, with its rich six-decade history, trusted reputation and deep industry expertise, is an ideal partner for this collaboration. We recognise that it is a challenge to enter markets that are not widely explored by Brazilian companies, but with Thermax’s proven track record and strong presence in the region, we are confident of seizing this opportunity to enter the promising Asian market.”

The new company will strengthen Thermax’s chemicals portfolio, which currently includes ion exchange resins, water treatment chemicals, oilfield chemicals and construction chemicals.