INEOS Acetyls and GNFC have signed an MoU to establish a 600kt acetic acid plant in Gujarat, aiming to reduce India’s reliance on imports and boost local production by 2028.

Gujarat, India: INEOS Acetyls, a global leader in acetic acid production, and Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC), India's sole domestic acetic acid producer, have signed a Memorandum of Understanding (MoU) to explore the establishment of a state-of-the-art acetic acid plant. The proposed facility, with an annual capacity of 600 kilotons, is set to be located at GNFC’s site in Bharuch, Gujarat.

The collaboration marks the evolution of a nearly 30-year-long technology partnership into a strategic joint venture. The project aims to address India's significant reliance on imported acetic acid, which currently meets approximately 85% of the nation’s annual demand. Production is targeted to commence in 2028.

David Brooks, CEO of INEOS Acetyls, expressed enthusiasm for the partnership: "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."

Pankaj Joshi, Managing Director of GNFC, emphasized the strategic importance of the initiative, stating that the joint venture aligned with the 'Make in India' vision by boosting domestic production to meet current demand and emerging downstream requirements. He added that it would conserve foreign exchange and bolster India’s self-reliance in critical chemical production.