Indian PTA demand growth to average at 7% till 2009

27 Dec '05

2 min read

Japan's Trade Ministry estimates India's purified terephthalic acid (PTA) demand to grow by an average of 7 percent till 2009, the fastest growth rate in Asia after China's 13.5 percent.

Mitsubishi Chemical Holdings Corp, Japan's leading chemical manufacturer is building an 800,000 ton PTA plant in West Bengal at the cost of US $370 million, the Tokyo based company said yesterday.

It is expanding its capacity to make PTA in India and China to tap increasing demand for the raw material for polyester resin and fiber to make beverage bottles and inexpensive suits.

The company estimates that India's PTA demand will register a rise of 5 million tons by 2009, up from 2.3 million tons in 2005.

India's population growth and rising purchasing power of middle-class Indians will create huge demand in the coming years, Executive Vice President Masaoki Funada said in Tokyo, yesterday.

To support further increases in PTA demand, the Indian Government has plans in the pipeline to build 25 'fiber parks' by 2006.

Japan's fiber consumption per person is about 22 kilograms, it is 33 kilograms in United States while India's fiber consumption is projected to go up to 5 kilograms in 2010, the company release informed.

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