Cibatul forges agreement with Finnish firm
Our Infrastructure Bureau
MUMBAI, January 13: Cibatul Ltd, a leading manufacturer of epoxy resins, UF resins and specialty intermediates, has forged a contract manufacturing agreement with Finnish giant, Neste, for powdered UF resins for application in the wood industry.As part of the arrangement, Neste Resins will source part of their UF powdered resin requirements for the African and South East Asian markets from Cibatul. Powdered resins are typically used by the panel board industry in countries where superior storage life is required from resins due to tropical climatic conditions. Neste Resins is the global leader in formaldehyde resins and part of $1 billion Neste Chemicals. Neste Chemicals, which has activities in more than 20 countries and production sites in 17 nations in Europe, Asia and North America, is part of the Finnish oil, energy and chemicals group, Neste Oy. Cibatul is a joint venture company of Lalbhai group company, Atul, and Ciba and has been manufacturing powdered resins in India since 1966. Neste
Resins manager for export powder resins, Jouko Virtanen, said the arrangement with Cibatul will allow Neste to serve and expand its customer base especially in Asia and Africa better due to improved logistics. Cibatul will manufacture the resins for Neste as per the Finnish giant's specifications in order to maintain quality. Cibatul is expected to supply about 3,000 MT per annum of these resins to Neste and is understood to have already commenced supplies. Cibatul has a capacity of about 6,000 MT per annum for powdered UF resins. Cibatul managing director, JL Shah said the arrangement was an "important step in the direction of the company's mission to be recognised as a world class Indian chemical manufacturer." Senior Cibatul officials said the new arrangement is expected to generate an additional turnover of Rs 10 crore for the company while projected turnover of the wood resins division is expected to go up to Rs 28 crore.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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