Tamilnadu Petroproducts subsidiary to set up plant in Singapore

Tamilnadu Petroproducts Ltd has announced that the Company's Subsidiary Company in Singapore is to set up US$ 110 Million Petrochemical Plant in Singapore to manufacture 1,00,000 MT of Normal Paraffin. The Company's investment through its subsidiary will be 51% of the Equity while Kuwait Finance House and Singapore's Economic Development Board will hold 44% and 5% respectively. A Deal has been signed to this effect on June 04, 2007 in Singapore and the signing ceremony was witnessed by Singapore's Prime Minister, Mr. Lee Hsien Loong and Kuwaiti Prime Minister, Mr. Sheikh Nasser Al-Mohammed Al-Ahmed Al-Jaber Al-Sabah.

Singapore has been chosen in view of-

a. availability of a long term supply of Kerosene and

b. reliability of services such as Electricity which is costly in India.

Negotiations are in advanced stage with the Singapore Refining Company for a deal to supply Kerosene. Half of the Normal Paraffin to be produced will be exported to the Company's Plant in India while rest will be sold in the open market. The demand for Normal Paraffin is expected to increase considerably and Industry sources estimate that there will be a shortage of 2,00,000 MT each year till 2010 in South-east Asia and Asia-Pacific.

The stock closed the day at Rs.17.35, down by Rs.0.50 or 2.80%. The total traded quantity was 37470 compared to 2 week average of 39648. The stock hit an intraday high of Rs.18.10 and low of Rs.17.30.

Source : Equity Bulls

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