Tata Chemicals to invest £60 million in UK sodium bicarbonate plant, close Lostock unit 

Anupama Ghosh Updated - November 13, 2024 at 02:39 PM.

The new facility will have an annual production capacity of 180,000 tons, tripling TCEL’s current pharmaceutical-grade sodium bicarbonate production capacity in the UK

Tata Chemicals Europe Limited (TCEL), a wholly-owned subsidiary of Tata Chemicals, announced today a £60 million (approximately ₹655 crore) capital investment to construct a pharmaceutical-grade sodium bicarbonate plant in Northwich, United Kingdom.

The new facility will have an annual production capacity of 180,000 tons, tripling TCEL’s current pharmaceutical-grade sodium bicarbonate production capacity in the UK.

The shares of Tata Chemicals Limited were trading at ₹1,051.20 down by ₹21.15 or 1.97 per cent on the NSE today on the NSE today at 2.05 pm.

The company also revealed plans to cease operations at its loss-making Lostock chemical plant by January 2025, subject to employee consultation requirements under local law. The Lostock unit currently contributes approximately Rs. 1,200 crore, representing about 8 per cent of Tata Chemicals’ turnover.

Construction of the new Northwich plant is scheduled to begin in 2025, with production expected to commence in 2027. The facility will employ a patented process using captured carbon dioxide from energy generation emissions as a key raw material.

The investment aims to meet growing demand from pharmaceutical manufacturers who use high-grade sodium bicarbonate in medicines and hemodialysis. The project will be financed through a combination of internal accruals and debt, according to the company’s filing with Indian stock exchanges.

Published on November 13, 2024 09:09

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