Continental Carbon India Investing $500 million in 2 Greenfield Units
According to an article in the Economic Times, Continental Carbon India Ltd. (CCIL) has announced plans to invest Rs 2,000 crore (US$500 million) to build two greenfield plants to manufacture carbon black in India. CCIL plans to build one plant on each coast, in Gujarat on the west coast and either Tamil Nadu or Andhra Pradesh on the east coast. The plants will be export-oriented and each will have 300,000 to 350,000 tonnes of annual capacity. Combined with an expansion at CCIL’s existing plant Ghaziabad, these projects would take the company to 800,000 tonnes of annual capacity by 2012.
According to CCIL CFO Rakesh Dhamani,
We plan to make India our manufacturing hub to source carbon black for Europe and the Far-East markets, as it has a major export potential.
The projects will be funded through an equal ratio of debt and equity. According to Mr. Dhamani, CCIL is looking at bringing in the World Bank’s International Finance Corporation as a possible partner, but financing will not be finalized until locations are selected.