Chemplast Sanmar commences work on new plant in Cuddalore

Chemplast Sanmar Ltd has announced that the Board of Directors of the Company at its meeting held on April 12, 2007, inter alia, with a view to conserving resources and to meet the requirements of the Company's ongoing capital expenditure programmes, the Directors did not recommend any dividend on the equity shares for the Financial Year 2006-07.

Further the Company has informed that, the Board of Directors of the Company had earlier approved the Company setting up a greenfield 170,000 tpa PVC project at Cuddalore at an investment of about Rs 450 crores. The work on this project has commenced. Based on a detailed engineering study that revealed that the capacity of the plant could be increased by an additional 30,000 tpa at a marginal increase in the capital cost, the Board approved the revision in the capacity to 200,000 tpa with the investment being a total of Rs 520 crores.

The Board has also approved the increase in the capacity of PVC pipes to 56,000 tpa, through establishing additional capacity at the Company's existing plant near Chennai and setting up a new greenfield plant close to the Maharashtra - Karnataka border.

Source : Equity Bulls

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