The Rs 700-crore Kolkata based coal-tar pitch maker Himadri Chemicals and Industries Ltd plans to use its upcoming $40-million (Rs 200 crore) facility in China to cater the key markets in East Asia. The first phase of the proposed 100,000 tonnes facility will be commissioned in January 2012.
Coal-tar pitch and its downstream products are used in aluminium, graphite and cement manufacturing. While the aluminium sector uses it for purification of the metal; coal-tar is used as a ‘binder' for commercial graphite production. SNF (sodium naphthalene formaldehyde), a downstream product of coal-tar pitch, mixed with ready-mix concrete, finds its use in the construction sector.
Investment
“At an estimated investment of $20 million we hope to commence production of about 50,000 tonnes of coal-tar pitch in the first phase. The second phase will entail an investment of another $20 million,” Mr Anurag Choudhary, Chief Executive Officer, Himadri Chemicals, said.
Though the product details were not divulged, he said that eventually Himadri would look forward to add SNF capacity to cater the vast construction sector in China.
The subsidiary
Himadri will hold 94 per cent stake in the Chinese subsidiary – Shandong Dawn Himadri Chemicals Industries Ltd – while the rest will be with the local partner, Shandong Dawn.
“We will leverage the large availability of raw material (coal-tar) in China to build a winning business,” Mr Choudhary said.
The raw material
Coal tar is a residue available from coke-oven batteries in steel plants. China being world's largest steel producer with a capacity to produce 600 million tonnes of crude steel – nearly 10 times the steel making capacity of India – is naturally the largest source of raw material for coal tar pitch.
Himadri is hopeful of replacing a major chunk of the coal-tar pitch produced from the steel plants in China. “The pitch produced by steel plants is of inferior quality and it affects the power consumption, purity of metal produced and also impacts the ability of the anode,” Mr Choudhary said.
shobha@thehindu.co.in