Kanoria Chemicals & Industries Ltd (KCI) is to form a 50:50 JV with Momentive Specialty Chemicals Inc for the manufacture and sale of speciality phenolic resins, formaldehyde and hexamine.
The companies have signed a non-binding MoU to this effect.
As per the agreement, the joint venture company will construct a new phenolic resin plant at KCI’s existing facility in Vishakhapatnam. KCI will transfer its existing facility to the proposed joint venture for a cash consideration while Momentive will bring in technology, the former said in a filing to the BSE.
The companies would work to identify and evaluate additional growth opportunities for speciality chemicals in verticals such as auto, industrial and construction, it added.