Zuari Industries Plans Fertilizer Complex in Karwar

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Researched by Industrial Info Resources (Sugar Land, Texas)--Zuari Industries Limited (BSE:500780) (Goa, India) is performing initial studies on building a nitrogenous/phosphatic fertilizer complex in Karwar, Karnataka. Zuari has been involved in India's fertilizer industry since its inception in 1973, and since that time has diversified into the production and sales of herbicides, pesticides, fungicides and insecticides.

Zuari is investigating the benefits of establishing a grassroot fertilizer production facility in Karnataka, since it already has a sales office in the state. The early planning for the facility has begun, with an optimistic timeline of receiving funding approval as early as November or December of this year. Currently, production plans are estimated at about 1 million metric tons per year of urea and 1 million metrict tons per year of mixed phosphate fertilizers. The entire complex could require an investment of more than $1.3 billion. The earliest construction start would be the middle of 2011, with a completion date during the second half of 2013.

Karwar is a coastal city supported by livestock and agricultural industries, such as cashews and coconuts. In fact, most the population of Karwar is involved in agriculture as the main occupation. Karwar's port is one of the most used in all of Karnataka and is known to be one of the best natural harbors in the world. Both of these serve as good reasons, and logical points, to establish a fertilizer complex in this area. Not only is there an abundance of local customers involved with farming and ranching, but a recognized national port.

Toyo Engineering Corporation (TYO:6330) (Tokyo, Japan) built the first fertilizer production plant for Zuari in the 1970s in Goa. The complex is comprised of a naphtha-fed ammonia unit, which can process 660 metric tons per day; a urea unit, which can process 1,140 metric tons per day; an nitrogen, phosphorus and potassium unit, which can process 1,100 metric tons per day, with several ratios to produce the needed mixed-product; and a diammonium phosphate production unit, which can process 1,100 metric tons per day.

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