Assam Petrochemicals, incorporated in 1971, is engaged in the business of manufacturing methanol and formalin. The company was set up with an objective of utilizing reserves of natural gas in the upper Assam oil fields and also to cater the requirement of methanol and formalin.
The company was set up by state government of Assam with joint participation of Assam Industrial Development Corporation (AIDC) and the public. Primarily, it started with manufacturing of petrochemicals using natural gas as a feedstock. The company started with a methanol plant with formaldehyde and a few urea formaldehyde resins.
For this company sourced technology from Mitsubishi Gas Chemicals Co Japan. Commercial production of plant started in 1976.
Later in 1989, the company established a methanol plant of 100TPD capacity to meet growing demand. For this company sourced technology from UK-based ICI. In the year 1989 the company set up a 100 TPD formaldehyde plant for which the technology was sourced from Derivados Forestales of Nederland.
The company is marketing it products in Bengal, Delhi, Haryana, Uttaranchal, Bihar, Nepal, Bhutan, etc. Assam Petrochemicals is the first company in the north eastern region to float a public issue. The company is listed on the Bombay Stock Exchange and the Guwahati Stock Exchange.
The company has a manufacturing capacity of 100 TPD of methanol and formalin each. Thus the annual production of these products is 33,000 tonnes each.
Methanol- Methanol, or methyl alcohol, is a transparent liquid with typical smell of alcohol, highly inflammable and poisonous. This product can be converted into various industrial chemicals such as formaldehyde, DMT (polyester intermediary), fertilizers, pesticides, drugs, MTBE, paints, methylamine and bio diesel.
Formalin- This is a pungent smelling toxic liquid used by various plywood industries for making adhesive resins, laminate manufacturers, MDF making, destuff, pntaerythritol and hxamine.
Assam Petrochemicals plans to increase its production capacity of its methanol plant by 30%, which would require an investment of Rs 30 crore; and 25% of its formaldehyde plant with capital investment of Rs 4 crore.
The company plans to set up a captive power unit comprising two gas turbines of 3.5 MW each.
Assam Petrochemicals plans to set up a 500TPD methanol plant that is estimated to require an capital investment of Rs.600 crore.