Mexico City: Aditya Birla Group is close to signing a land deal with Port Authority of Altimera, the port in Mexico, for setting up a carbon black plant that will envisage an investment of $150 million (Rs596 crore).
“We may sign the agreement next week. The $150 million project will be completed within two years,” Group’s joint president in Latin America Surendra Goyal, who is part of the business delegation accompanying president Pratibha Patil said. Carbon black is the key input in the rubber processing and chemicals industry. It is mainly used in manufacturing tyres and also makes the raw material for producing paints, dyes, inks and conveyor belts.
Goyal said the Port in Tamavlipas of Mexico was picked up as it could be an entry point to the US, where naptha is cheaper. The Aditya Birla group has a capacity of producing 7,50,000 tonnes per annum of carbon black, making it the world’s fourth-largest manufacturer of the material.
Internationally, the group has carbon black facilities at its Alexandria Carbon Black unit in Egypt, Thai Carbon Black Public Company in Thailand and Liaoning CaBlack unit in China.
In the domestic market, the gorup has two manufacturing facilities in Uttar Pradesh and Tamil Nadu with combined capacity of 2,30,000 tonnes annually.