India's Styrenix Plans ABS, PS Capacity Expansions In Gujarat

India’s Styrenix Performance Materials (SPM) expects to begin operations at its expanded acrylonitrile butadiene styrene (ABS) and polystyrene (PS) capacities at Dahej and Nandesari in the western Gujarat state before 2028, a company source said on Friday.

SPM plans to invest Rs6.5bn ($78m) on the expansion projects.

Its ABS capacity will grow to 210,000 tonnes/year over the next four years, from 85,000 tonnes/year currently; while its PS capacity will be raised to 150,000 tonnes/year over the next three years from the current 66,000 tonnes/year, based on the plan released in October 2023.

Funding the brownfield expansions will be through a mix of internal accruals and debt, SPM said.

“The expansion will be done in a phased manner and capacity will be increased gradually over the next few years,” the company source said.

The expansion of production capacities will help SPM meet increasing domestic demand for ABS and PS, he sai.

“We expect to see robust growth in in our existing markets like automobiles, household appliances, medical devices, electronics, [among others],” the source said.

SPM is formerly known as INEOS Styrolution India. It was renamed in January 2023 after INEOS Styrolution sold its entire stake in the company to Shiva Performance Material in August 2022.