Mitsubishi Chemical Corporation (MCC) signed a share purchase agreement today with The Chatterjee Group envisaging sale of its majority equity interest in MCPI, while retaining a minority portion of shares.
A statement issued by MCPI (MCC PTA India Corp) said that it had invested Rs. 3600 crores in two phases since 1997 to set up a chemicals plant at West Bengal's industrial port town of Haldia. It was at one time among the biggest Japanese FDI in India.
However although the state government tried to help the plant with special incentive package, it became sick with a substantial debt burden incurred during a period of huge overcapacity since 2011 in international markets and dumping of the product in India, the statement said.
PTA is used in polyester and polyester fibres in India.
The Chatterjee Group runs the Haldia Petrochemical Ltd , West Bengal's showpiece investment and has investments in the real estate space across the country.
