Deepak Fertilizers announced the start of commercial output of nitric acid at its production complex at Dahej, Gujarat.
The new facility, with project cost of approximately $79 million, has production capacity of around 92,000 tonne per annum for concentrated nitric acid and around 14,9000 tonne/annum for diluted nitric acid, the company said.
This new facility makes the Deepak Fertilizers’ overall capacity for nitric acid reach 1.07 million tonne per annum.
“The existing capacities are running at full utilization levels supported by high demand from end-use players and captive requirements. Post addition of these new capacities, the company’s market share will increase to about 54%,” the company said in the statement.
“Our plant is strategically located in the vicinity of large consumers of concentrated nitric acid which produces nitroaromatics for speciality chemicals,” said Sailesh Mehta, chairman and managing director of Deepak Fertilisers and Petrochemicals.
“The company has tied up for about 70% of the concentrated nitric acid volumes to ensure stable margins and regular offtakes from this facility,” he added.
Nitric Acid in different grades are used in nitro aromatics, pharmaceuticals, dyes, steel rolling industry, defence and explosive industries. Major players in the Aromatics segment have expanded their capacities for existing and new products which is expected to drive demand for Nitric Acid in the medium to long term in the region.
