Mumbai: Pune-based chemicals maker Deepak Fertilisers and Petrochemicals Corp said on Wednesday it would invest about $350 million to set up a technical ammonium nitrate (TAN) manufacturing unit in Australia, pushing its shares up more than 4%.
The government of South Australia has identified a potentially suitable site for the project, which will be the subject of a feasibility study, the firm said in a statement.
Deepak Fertilisers plans to set up a plant with 300,000 tonne per annum capacity, which would come up over a period of about three years, it said.
Deepak Fertilisers is the world’s fifth largest manufacturer of TAN - a critical input for the mining and construction industry with an existing annual capacity of 500,000 tonnes.
The company is already in talks with Australian Explosive Technologies (AET) Group Pty. Ltd. to enter mine consultancy sector in Australia.
Shares of Deepak Fertilisers closed at Rs156 on Wednesday, up 0.87% in a firm Mumbai stock market that ended up 1.08%.