Essar and Eastman sign MOU for Oxo and Oxo derivatives project

29-Jan-07

In a bid to expand value chain in all its businesses and leverage an attractive, integrated feedstock supply position to enhance potential of Essar Oil's refinery, Essar Chemicals has decided to enter the field of Oxo and derivative production. Essar Chemicals Ltd., part of India's Essar Group, and Eastman Chemical Company have signed an MOU and announced the completion of a joint feasibility study regarding potential opportunities for the production of oxo and oxo derivatives for the domestic market in India. This project will further enhance potential of Essar Oil's refinery that will supply the main feedstock propylene for oxo and oxo derivatives complex. Joining hands with Eastman, one of the most innovative companies in the world, to implement this project is the first step in the value chain integration of Essar's refining business. Eastman has the oxo and oxo derivatives technologies, and Essar has feedstaock materials at a significantly advantaged cost, ensuring margins. The feasibility study includes plans for a 150,000 tons per year oxo aldehyde plant and its derivatives. Oxo and oxo derivatives are part of Eastman's performance chemicals and intermediates segment. These intermediates are used to manufacture a variety of end-use products such as coatings and paints, solvents and plasticizers.