Oct 4 2007
Thermax Limited and Georgia-Pacific Chemicals LLC, based in Atlanta, Ga., USA, have signed a technology and manufacturing license agreement for performance enhancing chemicals which find extensive applications in the paper industry. The agreement, which will be valid for seven years, was signed by M S Unnikrishnan, Managing Director, Thermax Limited and Peter Williams, Vice President, Sales and Marketing, Georgia-Pacific Chemicals at Thermax Limited’s Pune office today. Products based on the licensed technology will enable Thermax to expand its business in the paper industry in India and South East Asia, as per the agreement.
The paper & pulp business is highly competitive in India and overseas. This technology agreement will enable Thermax to improve the competitive edge of its clients by improving productivity, reducing raw material and production costs, and minimising plant downtime while enhancing quality and safety. “Georgia- Pacific’s technology will give us some real credibility in offering long-term solutions to paper manufacturers,” said Mr. Unnikrishnan.
“Georgia-Pacific has developed this technology to deliver efficiencies in the paper industry. We are acknowledged leaders in developing and manufacturing chemical products used to improve the properties of paper and paper products,” said Williams. These chemicals are bio-degradable and are approved by the Food and Drug Administration (FDA),USA. Georgia-Pacific is also one of the largest global manufacturers of paper and paper products, which has helped increase the company’s detailed industry knowledge. “Thermax will offer this expertise in combination with their own portfolio of technologies and products to offer a meaningful performance advantage to paper and paper product manufacturers in India and South East Asia.” Mr. Williams added.
India produces about 6 million tons of paper and paperboard, including newsprint, at 600-odd paper mills with an installed capacity of 8.5 million tons. The challenge facing the Indian paper industry in meeting the rising demand is the shortage of fiber in the country. Many well-known companies import pulp to meet demand.
According to analysts, the major players in the industry have lined up close to Rs. 8,000 crore (US $1,750 million) in capital expenditure, a major part of which will be used by 2008. The demand for paper and paper products is projected to double in 2015, from the present 6 million tons. The paper market in South East Asia is also very buoyant and the big players are investing in new capacities.
The estimated market for specialty paper chemicals in India is approx. Rs. 390 crore (US $85 million) and a whopping Rs. 1,600 crore (US $355 million) in the Asia Pacific region.