Kanoria Chemicals inks MoU with Momentive Specialty Chemicals to form JV Company

Kanoria Chemicals & Industries (KCI) has signed a non-binding Memorandum of Understanding (MoU) with Momentive Specialty Chemicals Inc. with the aim of forming a joint venture (JV) for manufacture and sale of specialty phenolic resins, Formaldehyde and Hexamine.

The JV Company as per the MOU will construct a new phenolic resin plant at KCI’s existing production facility at Vishakhapatnam, Andhra Pradesh. In addition, for a cash consideration, KCI would transfer its currently existing manufacturing facility in Visakhapatnam to the proposed JV, while Momentive Specialty Chemicals would provide technology supporting its specialty phenolic resins, Formaldehyde and Hexamine businesses as well as its current business in India, to the JV.

Besides, it is envisioned that both, parties would have equal (50%) ownership of the JV. The companies would work to identify and evaluate additional growth opportunities for specialty chemicals in such vertical markets, as automotive, industrial and construction.