INEOS Acetyls and Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) have signed a Memorandum of Understanding (MOU) to explore the construction of a 600-kilotonne-per-year Acetic Acid plant at GNFC's site in Bharuch, Gujarat, India. The proposed facility aims to strengthen India’s domestic production capacity and reduce reliance on imports, aligning with the government’s “Make in India” initiative.

INEOS Acetyls, a leading global producer of Acetic Acid, and GNFC, currently the sole domestic producer in India, bring decades of collaboration to this venture. For nearly 30 years, the two companies have maintained a strong technology partnership. This new agreement takes their relationship further by establishing a joint venture to oversee the development and implementation of the project, which is expected to be operational by 2028.

David Brooks, CEO of INEOS Acetyls, expressed enthusiasm about the initiative, highlighting India’s significance as a growing market for Acetic Acid and related products. “We are delighted to make this announcement today, working with our partner GNFC on this new project. India is recognized as being a key growth market for our products over the coming years, and this investment will increase much-needed locally produced Acetic Acid, reducing the country’s reliance on imports,” he said.

Pankaj Joshi, Managing Director of GNFC, emphasized the critical importance of domestication. He noted that India currently imports approximately 85% of its annual Acetic Acid requirements. The joint venture will address this heavy dependence on foreign supply by meeting existing domestic demand and supporting the growing needs of downstream industries. This shift toward localized production is expected to conserve significant foreign exchange and catalyze the growth of India’s industrial ecosystem.

Acetic Acid is an essential chemical used in a wide range of applications, including textiles, adhesives, and food preservation. With India’s rapid industrial expansion, the demand for Acetic Acid is expected to rise, making this project both timely and strategically important for the country’s economic development.

The collaboration between INEOS Acetyls and GNFC not only represents a significant step in India’s journey toward self-reliance but also reflects their shared commitment to sustainable growth. By leveraging their combined expertise and technological capabilities, the joint venture is poised to meet India’s growing needs while reducing its dependency on imports and contributing to the nation’s industrial progress.

INEOS Acetyls is a leading global producer of acetic acid and its derivatives. It holds the distinction of being Europe’s largest producer of acetic acid, acetic anhydride, and ethyl acetate. For more than 45 years, INEOS Acetyls has been a reliable supplier of acetic acid and acetic anhydride to markets throughout North and South America.