Press Release : Clariant AG: Clariant and India Glycols tap into green renewables megatrend by forming joint venture

 
 
 
 
   --    JV to become a leading supplier of renewable ethylene 
         oxide (EO) derivatives 
 
   --    Production facilities in India to supply local and 
         global markets 
 
   --    Both parties contribute parts of their existing 
         businesses and Clariant makes relevant equalization 
         payment to attain majority ownership 
 
 
   Muttenz, March 11, 2021-- Clariant, a focused, sustainable and 
innovative specialty chemical company, and India Glycols Limited (IGL), 
a leading company in the manufacturing of green technology-based 
chemicals, today announced a strategic partnership to establish a 51-49% 
joint venture in renewable ethylene oxide (EO) derivatives. 
 
   By combining production and distribution capacity, the joint venture is 
expected to become a leading supplier of renewable materials to the 
rapidly growing consumer care market in India and neighboring countries, 
while providing Clariant the ability to leverage the EO derivatives 
globally across the home care, personal care and industrial applications 
segments of its Industrial and Consumer Specialties business. The 
partnership is subject to customary regulatory approvals. 
 
   "This opportunity to partner with India Glycols is an important step in 
Clariant's journey to strengthen our core portfolio, while adding value 
with sustainability. It enhances the capacity of our Industrial and 
Consumer Specialties business in India and beyond, whereas the access to 
renewable Ethylene Oxide broadens our global offering to customers and 
this makes Clariant a leader in "green" Ethylene Oxide Derivatives", 
said Conrad Keijzer, CEO of Clariant. 
 
   "The partnership is in line with IGL's strategy to promote value added 
products through sustainable green chemistry in the domestic market 
while expanding footprints in global markets. IGL being the largest 
manufacturer of green EO in the world, which is based on a unique and 
green production process using bio-ethanol, would continue to leverage 
its strength in further developing complex and sustainable chemistry to 
create value for its shareholders", commented U.S. Bhartia, Chairman of 
India Glycols Limited. 
 
   Under the terms of the proposed agreement, India Glycols will contribute 
its renewable Bio-EO Derivative business to the joint venture, which 
includes a multipurpose production facility including an alkoxylation 
plant located in Kashipur, Uttarakhand (India). In return, Clariant will 
contribute its local Industrial and Consumer Specialties business in 
India, Sri Lanka, Bangladesh and Nepal, held by Clariant India Ltd., as 
well as a net cash payment to attain a 51% stake and thus majority 
ownership. Clariant International Ltd. will be the sole Clariant 
shareholder in the JV. Mr. U.S. Bhartia would be the designated chairman 
of the joint venture. 
 
   Christian Vang, Global Head of Clariant's Business Unit Industrial & 
Consumer Specialties, added: "By partnering with India Glycols, Clariant 
will become one of the established players for ethylene oxide derivates 
in India and provide products on a renewable basis. By working closely 
together and leveraging the unique capabilities of both parties, we see 
opportunities for profitable growth based on strong local organic demand 
as well as the global megatrend for renewable products." 
 
   The joint venture will market Clariant's entire range of Industrial and 
Consumer Specialties products in the previously mentioned countries, 
while all other global markets shall be served by Clariant. To support 
production, India Glycols has agreed to a long-term supply agreement for 
ethylene oxide made from bio-ethanol as well as further utilities. At 
its inception, the joint venture will have approximately 200 employees. 
 
 
 
 
CORPORATE MEDIA RELATIONS           INVESTOR RELATIONS 
Jochen Dubiel 
 Phone [phone]               Andreas Schwarzwälder 
 mailto:[e-mail]    Phone [phone] 
 [e-mail]           [e-mail] 
---------------------------------- 
Claudia Kamensky                    Maria Ivek 
 Phone [phone]              Phone [phone] 
 [e-mail]       [e-mail] 
                                    ------------------------------------- 
Thijs Bouwens                       Alexander Kamb 
 Phone [phone]              Phone [phone] 
 [e-mail]          [e-mail] 
 
 
 
 
 
 
 
 
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  This media release contains certain statements that are neither 
  reported financial results nor other historical information. 
  This document also includes forward-looking statements. Because 
  these forward-looking statements are subject to risks and 
  uncertainties, actual future results may differ materially 
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  of these risks and uncertainties relate to factors that are 
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  timing and strength of new product offerings; pricing strategies 
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http://www.clariant.com www.clariant.com 
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Clariant is a focused, sustainable and innovative specialty 
 chemical company based in Muttenz, near Basel/Switzerland. 
 On 31 December 2020, the company employed a total workforce 
 of 13 235. In the financial year 2020, Clariant recorded 
 sales of CHF 3.860 billion for its continuing businesses. 
 The company reports in three business areas: Care Chemicals, 
 Catalysis and Natural Resources. Clariant's corporate strategy 
 is based on five pillars: focus on innovation and R&D, add 
 value with sustainability, reposition portfolio, intensify 
 growth, and increase profitability. 
 
 
   Attachments 
 
 
   -- Clariant Media Release JV India Glycols 20210311 EN 
      https://ml-eu.globenewswire.com/Resource/Download/41480c79-952f-4d48-bb07-082b01f8826e 
 
 
   -- Clariant Media Release JV India Glycols 20210311 DE 
      https://ml-eu.globenewswire.com/Resource/Download/93914f70-f942-43ed-a379-f0cc09ec3e94

(END) Dow Jones Newswires

March 11, 2021 12:00 ET (17:00 GMT)