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Tata Chemicals Europe to Invest ₹655 Crore in UK Sodium Bicarbonate Plant

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Synopsis:

Tata Chemicals Europe plans a ₹655 crore investment to build a sodium bicarbonate plant in Northwich, UK. The project will triple production by 2027, utilising carbon capture technology.

Tata Chemicals Europe news today

Tata Chemicals Europe (TCE), a subsidiary of Tata Chemicals, has approved a ₹655 crore investment to construct a pharmaceutical-grade sodium bicarbonate plant in Northwich, UK. The plant, with an annual production capacity of 1,80,000 tonnes, will triple TCE’s production capability. Scheduled to begin construction in 2025, the project is expected to start operations in 2027. This investment will cater to the growing demand for high-quality sodium bicarbonate in pharmaceuticals, particularly for medicines and haemodialysis.

TATA CHEMICALS LTD

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1028.85-30.70 (-2.89 %)

Updated - 20 December 2024
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Key Takeaways

  • Investment Amount: ₹655 crore.

  • Capacity Expansion: 1,80,000 tonnes per year.

  • Timeline: Construction begins in 2025; production starts in 2027.

  • Raw Material: Carbon dioxide from emissions via patented carbon capture technology.

  • Funding: Combination of internal accruals and debt.

Also read: EMS Secures ₹681.5 Crore JV Contract with Kolkata Municipal Corporation

Transition And Closure Of Loss-Making Operations

As part of the restructuring, TCE will halt chemical production at its loss-making Lostock plant by January 2025. The decision aligns with the company’s strategic focus on enhancing profitable operations and increasing efficiency. The closure, subject to local legal compliance, facilitates the allocation of resources toward this significant investment.

Also read: Federal Bank Raises ₹1,500 Crore in Maiden Infrastructure Bond Issuance

Financial Performance Of Tata Chemicals

Tata Chemicals reported a 46% decline in consolidated net profit in Q2 FY25, standing at ₹267 crore compared to ₹495 crore in the same quarter last year. Despite flat revenue of ₹3,999 crore, EBITDA dropped by 25% to ₹618 crore.

Financial Metric

Q2 FY25

Q2 FY24

YoY Change

Net Profit (₹ crore)

267

495

-46%

Revenue (₹ crore)

3,999

4,000

Flat

EBITDA (₹ crore)

618

824

-25%

Market Impact And Tata Chemicals Share Price

The announcement boosted investor confidence, with the Tata Chemicals share price closing 2.80% higher at ₹3,350 on the NSE. This rise comes amid a broader 0.42% gain in the Nifty 50 index.

Tata Chemicals’ ambitious investment underscores its commitment to sustainable innovation and market leadership. The plant’s integration of carbon capture technology highlights its focus on environmental responsibility, positioning it as a forward-looking player in the chemical industry. The development could influence the Tata Chemicals share price positively in the long term.

Also read: Quality Investment Holdings PCC to Sell 9.43% Stake in PNB Housing Finance

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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