Momentive to Form Specialty Resins Joint Venture
Momentive Specialty Chemicals Inc. recently announced that it has signed a non-binding memorandum of understanding with Kanoria Chemicals & Industries Ltd. to form a joint venture that would construct a new phenolic specialty resins plant in India at Kanoria’s existing production facility at Visakhapatnam, Andhra Pradesh. In addition, for a cash consideration, Kanoria would reportedly transfer its currently existing manufacturing facility in Visakhapatnam to the proposed JV, while Momentive would provide technology supporting its specialty phenolic resins, formaldehyde and hexamine businesses, as well as its current business in India, to the JV. It is expected that both parties would have equal ownership of the JV.
“We are pleased to have the opportunity to partner with Kanoria, a leading manufacturer of chemical intermediates in India,” said Craig O. Morrison, chairman, president and CEO of Momentive. “India is a critical market for specialty chemicals, and the MOU represents another example of our commitment to strategically invest in the region.”
“The end markets for specialty phenolics and formaldehyde continue 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 R.V. Kanoria, chairman and managing director for Kanoria Chemicals.
For more information, visit www.momentive.com.