Page 25 - Plastics Nuews October 2017

CoMPANy NEWS

IOC plans to expand Paradip refinery capacity by 3-4 MT

ith the dispute between the Odisha government and government has agreed to provide Rs 700 crore interest-
WIndian Oil Corp (IOC)over the value-added tax (VAT) free loan per annum for 15 years to the oil company to
being resolved, the oil marketing firm has firmed up plans compensate for the loss of withdrawing tax incentive for
to increase its investment in the state including expansion 11-year deferment on payment of tax on products made
of the refining capacity in Paradip by 3-4 million tonne at the Paradip refinery and sold within the state. Though
(MT) per annum according to a report in Financial Express.
“Very soon we may be evaluating refinery expansion in the company had sought Rs 1,000 crore interest-free
loan per annum, Singh said the current negotiated
arrangement is comparable with what recent projects
have been offered.The company expects that with a
number of facilities, including a plastic park which is
already under development, being set up in Paradip,
various petrochemical downstream industries should come
up in the region. “We will be making MEG (monoethylene
glycol) in Paradip while PTA (purified terephthalic acid)
is being made by Haldia Petrochemical and Mitshubishi
plant, and these two are the raw materials for synthetic
yarn and the textile industry. So these provide tremendous
synergy to go for such expansions in the eastern part of
the country,” Singh said.

Ube helds Open house
Paradip. It is a greenfield 15 MT plant and we intend to
expand by 3-4 MT,” said Sanjiv Singh, chairman of IOC, be Machinery Inc. showed several all-electric
adding that the company has massive plans for further Uand servo hydraulic injection molding machines
investment in the state. IOC is investing Rs 50,000 crore at a Sept. 21-22 open house at its North American
in Odisha. This includes the Rs 5,000 crore Dhamra LNG headquarters and assembly plant in Ann Arbor.
terminal in which IOC will have 40% equity, though it has
not yet been firmed up. Others in the project include GAIL Over the course of two days, the event gathered
(India) and Adani Enterprises. customers such as Flex-N-Gate Corp. and NYX Inc.,
members of the media and executives from Nagoya,
“We are building a polypropylene plant for which an Japan-based Ube Machinery Corp. Ltd., which is owned
investment approval of Rs 4,000 crore is likely shortly. by Ube Industries Ltd. in Tokyo. The parent company
Apart from some other smaller investments, BS VI is celebrating its 120th anniversary this year."[Ube]
project will require Rs 4,500 crore and we are looking began in the U.S. in the machinery business in 1984 in
at other petrochemical options which will be more than Michigan, and then as we continued to grow, we went
`8,000 crore. All these are linked with the refinery,” said from a small office in Dearborn to a larger facility right
Singh. The state government has already accorded Paradip up the street," David Bernardi, former senior sales and
the petroleum, chemicals and petrochemicals industrial marketing manager at Ube Machinery Inc., told Plastics
region (PCPIR) status. News and a group of customers attending the event.
Earlier IOC paid Rs 2,935 crore to the Odisha government Ube moved into the 47,675-square-foot Ann Arbor
as part of the settlement to let go some of the tax facility in 1995 and shipped its first injection molding
incentives agreed upon in 2004. The tax amount was machine in June 1996, Bernardi added. In 1998, the
paid for the period of November 2015 (when the pant company expanded its facility to 148,000 square feet.
was commissioned) to July 2017. In return, the state Today, the facility has around 84 employees.

25 Octob er 2017 | Plastics News