BASF to partner with Adani to evaluate investment in acrylics value chain in India
BASF SE, headquartered in Ludwigshafen, Germany, and Adani Group have signed a Memorandum of Understanding (MoU) to evaluate a major joint investment in the acrylics value chain. This would be BASF’s largest investment in India to date.
The designated site would be located at Mundra port in Gujarat, India. A feasibility study will be completed by the end of 2019. According to the MoU, BASF and Adani want to establish a joint venture with an investment totaling about EUR 2 billion (approximately INR 16,000 crore), in which BASF will hold the majority.
Products for the Indian construction, automotive and coatings industries
The potential investment comprises the development, construction and operation of production plants including propane dehydrogenation (PDH), oxo C4 complex (butanols and 2-ethylhexanol), glacial acrylic acid (GAA), butyl acrylate (BA) and potentially other downstream products. The products are predominantly for the Indian market to serve a wide range of local industries, including construction, automotive and coatings, whose growing demand is currently supplied via imports, thus supporting the “Make in India” initiative.
BASF’s first CO2-neutral production site
In line with BASF’s carbon neutral growth strategy, the chemical site in Mundra would be the company’s first CO2-neutral production site. The companies have developed an overall plan including new technologies and the supply of the site with 100% renewable energy. Therefore, in addition to the investment outlined in this MoU, BASF plans to co-invest as a minority partner in a wind and solar park.
