Intercontinental to build compounding plant in India

By Steve Toloken
News Editor / International

Published: February 10, 2012 6:00 am ET

Related to this story

Topics Automotive Materials Suppliers
Companies & Associations

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
News Editor / International

Published: February 10, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Ford moving forward in carbon fiber for 'high volume' use

April 17, 2015 10:21 am ET

Ford Motor Co. has signed a deal with a carbon-fiber manufacturer to jointly explore “high-volume” automotive uses for the lightweight...    More

Image

German auto supplier opening first US plant

April 17, 2015 11:00 am ET

Automotive supplier EuWe Eugen Wexler U.S. Plastics Inc. is investing $11.1 million to open a manufacturing facility in Anderson County, S.C., the...    More

Image

Zoltek expanding CF capacity in Europe

April 17, 2015 10:12 am ET

Leading carbon fiber group Zoltek Corp. has signed a strategic agreement with the Hungarian government to expand its operation in northern Hungary,...    More

Image

Spain's Grupo Antolin to buy Magna's interiors business

April 16, 2015 12:33 pm ET

Spain's Grupo Antolin has reached an agreement to purchase Canadian auto supply giant Magna International Inc.'s interiors unit in a deal valued at...    More

Image

Hanwha Azdel adds capacity in Lynchburg

April 16, 2015 2:01 pm ET

Composite maker Hanwha Azdel Inc. will add space and a new production line at its Lynchburg, Va., production facility, the company announced April 16.    More

Market Reports

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

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

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

Upcoming Plastics News Events

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

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events