Kanoria Chemicals and Industries Ltd (KCI) has signed a non-binding memorandum of understanding (MoU) with Momentive Speciality Chemicals Inc to form a 50:50 joint venture (JV) for manufacturing and sale of speciality phenolic resins, formaldehyde and hexamine, as per a stock market disclosure.
As part of its contribution, KCI would transfer its existing manufacturing facility at Visakhapatnam, Andhra Pradesh, to the JV while Momentive Speciality Chemicals would provide technology supporting its specialty phenolic resins, formaldehyde and hexamine businesses.
As per the MoU, the JV firm will construct a new phenolic resin plant at KCI's existing production facility at Visakhapatnam.
"The end markets for specialty phenolics and formaldehyde continues to grow rapidly in India and the proposed JV would leverage the proven approach of combining technology and application development with world-class manufacturing expertise," said RV Kanoria, chairman and MD of KCI.
KCI is a top player in formaldehyde and hexamine in India while Momentive Specialty is a global leader in thermoset resins with facilities in over 30 countries.
(Edited by Joby Puthuparampil Johnson)