Sojitz Corporation, a $40-billion Japanese business house, has teamed up with Archean group to participate in the marine chemical project being implemented at Gujarat by the latter.

Sojitz Corporation, in addition to supporting the venture financially, will also help market abroad the Sulphate of Potash (SOP) produced at the facility, sources close to the development told Business Line .

Archean, a Chennai-based $600-milion group with interests in building materials, industrial minerals, coal, salt, fertiliser and shipping, is putting up a marine chemicals project at Rann of Kutch in Gujarat at an estimated cost of Rs 850 crore.

The project is being implemented by Archean Chemical Industries Pvt Ltd. The first phase of the project envisages setting up of a facility to produce one lakh tonnes of SOP a year. The facility, expected to be operational by 2012, will also produce other marine chemicals such as gypsum, epsomite, bromine and other salts.

The project, the first of its kind in Asia, will use the sub soil natural brine water deposits in the Rann of Kutch to produce SOP.

SOP is a fertiliser used for high quality crops including fruits and vegetables. India has been an importer of SOP.

Archean has already secured financial closure for this project.

A consortium of banks led by Bank of India, with Allahabad Bank, Bank of Baroda, Canara Bank, Punjab National Bank and Union Bank of India being the other members, has agreed to extend a debt of Rs 565 crore.

SBI Capital Markets is the sole financial advisor and debt arranger.

Related Topics
comment COMMENT NOW