Kiri Dyes enters JV with Zhejiang Lonsen of China

KOLKATA: Ahmedabad-based Kiri Dyes and Chemicals limited (KDCL) has entered into a joint venture with Zhejiang Lonsen Group Stock Company of China to set up a manufacturing unit at Vadodara in Gujarat for production of reactive dyes.

"It will require an initial investment of 10 million US dollar in 60:40 ratio," company sources said here today.

The joint venture, they said, would start with an initial production capacity of 20,000 tonne per annum.

The global chemical industry, estimated at 2.4 trillion US dollar, is one of the fastest growing sectors of the manufacturing industry.

The new plant, the sources said, would be set up by 2008-end.

Kiri Dyes and Chemicals Limited, a major manufacturer of reactive dyes, also known as synthetic organic and dye intermediaries, exports its products to Bangladesh, Korea, Indonesia, Taiwan, Turkey, Mexico and the US.

The sources said the plant would have the latest double conversion absorption technology and a power plant of 2.9 MW capacity run from steam generated by its sulphuric acid unit.