Mitsubishi Chemicals mulls selling stake in MCC PTA at Haldia

01-Jun-16

Mitsubishi Chemical Corp is exploring options to exit its Indian petrochemical business and is open to selling a majority stake in its domestic venture, as per sources in ET NOW, and could be in advanced stage of negotiations with private equity firm- The Chatterjee Group. Mitsubishi holds 66% stake in a PTA venture located in Haldia, West Bengal. The venture has incurred losses in the past due to a difficult market environment and the imports from China MCC PTA expanded its capacity in 2010 after commencing production in 2002. But the situation in the international market started becoming complex from 2012. Japanese giant Mitsubishi had invested approximately Rs 3,600 crore in the Bengal plant. Annual capacity is pegged at 1.27 mln tons. West Bengal Industrial Corporation ( WBIDC) holds 5% in the venture , Mitsubishi Corporation & Nissho Iwai Corporation which hold 9%, Tomen Corporation & Marubeni Corporation which hold 5% and Sumikin Bussan Corporation which holds 2%.