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HomeMarket NewsStocks NewsTata Chemicals arm TCEL approves ₹655-crore investment for new UK sodium bicarbonate plant
The plant will use a patented process that incorporates carbon dioxide captured from energy generation emissions, aligning with sustainability goals and meeting the growing demand from pharmaceutical companies for high-grade sodium bicarbonate used in medicines and haemodialysis. Shares of Tata Chemicals Ltd ended at ₹1,068.80, down by ₹27.70, or 2.53%, on the BSE.
Tata Chemicals Ltd on Tuesday (November 12) said its wholly-owned subsidiary Tata Chemicals Europe Ltd (TCEL) has announced a £60 million (approximately ₹655 crore) capital investment to establish a new pharmaceutical-grade sodium bicarbonate plant in Northwich, United Kingdom.
"...we would like to inform you that the Board of Directors of Tata Chemicals Europe Ltd (TCEL), a wholly-owned subsidiary of the company, has at its Board Meeting held today i.e. November 12, 2024, considered and approved the proposal of capital investment of £60 million (Rs 655 crore) to build a 1,80,000 tons per annum pharmaceutical grade sodium bicarbonate plant in Northwich, United Kingdom," according to a stock exchange filing.
Approved by Tata Chemicals Europe Ltd's board, the facility will have an annual production capacity of 180,000 tonnes and is expected to triple TCEL's pharmaceutical-grade sodium bicarbonate output in the UK. Construction is set to begin in 2025, with production slated for 2027. The investment will be financed through a mix of internal accruals and debt options.
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The new plant will utilise a patented process that incorporates carbon dioxide captured from energy generation emissions, aligning with sustainability goals and meeting the growing demand from pharmaceutical companies for high-grade sodium bicarbonate used in medicines and haemodialysis.
As part of the restructuring process to support this new investment, TCEL's board has approved the cessation of chemical production at its loss-making Lostock plant, expected by the end of January 2025, following necessary employee consultations. The Lostock plant contributed roughly ₹1,200 crore, or about 8% of Tata Chemicals' turnover in the last fiscal year.
Shares of Tata Chemicals Ltd ended at ₹1,068.80, down by ₹27.70, or 2.53%, on the BSE.
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(Edited by : Shoma Bhattacharjee)
