Shares of India’s Manali Petrochemicals finished at a record high on Monday, after the company said it will partner UK-based Econic Technologies to make a more environmentally friendly polyol for the global market.
Manali Petrochemicals’ stock ended 4.97% higher at INR111.95 ($1.52) on the National Stock Exchange (NSE), on news it inked a memorandum of understanding (MoU) with Econic to introduce “more environment friendly, CO2 containing polyols, into the $28bn global polyols market.”
Econic Technologies uses chemistry to turn waste CO2 into polymers for use in creating plastics. The agreement grants Manali access to an Econic solution that facilitates the substitution of fossil-based raw materials, with captured waste CO2, in the production of polyols, as outlined in a regulatory statement, released on 27 September.
The partnership will see the firms scale production processess at MPL’s pilot plant in India. “On successful completion, this will be followed by the introduction of the process to one of the production trains in MPL’s main plant. The shared intent is to (deliver) CO2-containing polyols to MPL’s customers,” the statement added.
Chennai-based Manali Petrochemicals has a market capitalisation of around INR19.26bn. The firm’s products find application in industries such as appliances, automotive, bedding, food & fragrances, footwear, furniture, paints and coatings and pharmaceuticals. Manali also owns British firm Notedome, a pioneer in the manufacture of high performance polyurethane cast elastomers.
Privately-held Econic develops catalyst technologies that can significantly reduce the energy required for these reactions to occur, allowing CO2 to be turned into polymers for use in creating everyday plastics.