Kolkata: Phillips Carbon Black Ltd (PCBL), an RPG Group company, will conduct a feasibility study in Vietnam for setting up a carbon black unit, a key ingredient for the manufacture of tyres.
PCBL on Wednesday signed a memorandum of understanding (MoU) with Vietnam National Chemical Corporation (Vinachem) for the project.
The MoU was signed by Sanjiv Goenka, chairman of Phillips Carbon Black and Nguyen Ngoc Tuan, a member of Vinachem’s board.
“The feasibility study will take 8-12 weeks and construction of the plant should take another 18 months,” Goenka said.
“This will be PCBL’s first overseas venture,” he added.
PCBL and Vinachem will form a joint venture, with the Indian company having a majority holding.
The joint venture will give Vietnam, which already has abundant natural rubber, its first carbon black manufacturing facility.“Vietnam, which is emerging as an attractive location for tyre companies, has to import its carbon black. We hope to be able to source it from the new plant now,” Tuan said.
PCBL is India’s largest manufacturer of carbon black, with a total installed capacity of 270,000 tonnes per annum. “The Vietnam plant will initially have a capacity of 50,000 tonnes and we will be investing Rs225 crore in it,” Goenka said.