Intercontinental to build compounding plant in India

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: February 10, 2012 6:00 am ET

Related to this story

Topics Materials, Suppliers, Automotive

NEW DELHI (Feb. 10, 2:15 p.m. ET) — Indian-American joint venture compounder Intercontinental Polymers Private Ltd. is building a 44.1 million pound-per-year engineering resins compounding plant in the western Indian state of Gujarat, aimed at both the country’s growing automotive industry and opportunities to switch traditional metal products to plastic.

The new facility in Dahag, Gugarat, will be a ten-fold increase in capacity for the company, which is a joint venture of Intercontinental Export Import, Inc., in Columbia, Md., and Indian injection molder, toolmaker and design house Jyoti Plastic Works Pvt. Ltd.

“The automotive industry has started to move in very fast and along with them, the second tier market is coming along,” said Saurabh Naik, group president and CEO of IEI. Naik also is an executive at the Naik Group, a collection of recycling and plastics processing businesses in the United States.

The Indian auto market is projected to grow from 1.9 million cars a year in 2010 to an estimated 4.7 million by 2015, according to figures from Mumbai-based resin manufacturer Reliance Industries Ltd.

As well, the joint venture is targeting metals conversion in more traditional Indian markets like pumps and agricultural equipment, said Raju Desai, director of Mumbai-based Jyoti.

“There is enormous untapped potential for converting traditional parts from metal to plastics,” Desai said.

Both Naik and Desai spoke at Jyoti’s booth at the Plastindia trade show, held Feb. 1-6 in New Delhi.

The Dahag plant will have four twin-screw extrusion lines, with the equipment likely coming from Western machinery suppliers because the company wants to be able to supply global firms, Naik said.

He said the arrival of more global car makers in India have convinced them that now is the right time to invest.

Automotive manufacturing is a demanding market, and most of the engineering resin compounding work for the global car makers will go to multinational resin firms and their compounding operations, Naik said.

But as those firms run short of capacity in India – and Naik believes they will because some of them are reluctant to increase their capital investments in the uncertain global economic situation — Intercontinental sees opportunity supplying extra capacity to them, he said.

Jyoti is making other investments as well.

It has just started operation at a new 100,000 square foot injection molding plant in Khadki, Gujarat, with 50 injection presses, Desai said.

The factory will target both exports to the United States and Europe, where Jyoti has sales offices, and India’s market for molded parts made from engineering plastics, said Desai.

Jyoti is also planning to build a 100,000 square foot mold making facility on the Khadki campus, targeting export tooling to Western markets, he said. But Jyoti is searching for a “technology partner” for that facility, Desai said.


Comments

Intercontinental to build compounding plant in India

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: February 10, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

RheTech to commercialize hemp fibers to replace glass in PP

November 27, 2014 6:00 am ET

RheTech Inc. plan to commercialize its first hemp fiber compounds in January.    More

Image

Market growing, but compounders say customers remain 'cautious'

November 27, 2014 6:00 am ET

Everywhere they've looked, North American compounders and concentrate makers have seen numbers on the rise in 2014.    More

Image

Americhem beats weather woes at start of 2014 for good fiscal year

November 26, 2014 9:45 am ET

Gains from the automotive and construction markets provided a strong fiscal 2014 for Americhem Inc.    More

Image

PE prices drop for first time in two years, PP down 5 cents

November 26, 2014 10:22 am ET

North American polyethylene buyers might want to circle November 2014 in red on their calendars — since PE prices this month have fallen for...    More

Image

Visteon in talks to sell its stake in Halla Visteon Climate Control JV

November 26, 2014 9:07 am ET

Visteon Corp. confirmed this morning that it is in discussions with a private equity firm to sell its stake in South Korean joint venture Halla Visteo...    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events