Thermax Chemical Solutions forms JV with Brazil's OCQ

Thermax Chemical Solutions, a wholly-owned subsidiary of Thermax Ltd, has entered into an exclusive shareholder's agreement with Brazilian chemical company Oswaldo Cruz Química Indústria e Comércio Ltda (OCQ), the company said on Tuesday.

According to the agreement, Thermax will hold a majority 51 per cent stake in the new entity, while OCQ will hold the remaining 49 per cent.

The joint venture will manufacture, trade, market, and sell OCQ formulated materials using Thermax's existing resources, infrastructure, and customer base, the company statement said.

Production will begin with acrylic resins at Thermax's Jhagadia plant in Gujarat, which will be adapted for the new operations.

"OCQ is a leading company in its space, and partnering with them will help us manufacture and deliver high-performance chemicals to a wide range of industries," Thermax Limited Managing Director CEO Ashish Bhandari said.

"Initially, production will focus on acrylic resins widely used in the paint, adhesives, infrastructure, textile, and waterproofing industries," he added.

Bhandari said the plant would later expand to include polyester and alkyd resins, marking the company's entry into a new line of business within its chemical solutions portfolio.

Francisco Fortunato, Founding Partner of the OCQ Group, called the joint venture "a strategic step to expand our geographic presence and international reach."

The new entity will strengthen Thermax's chemical portfolio, which currently includes ion exchange resins, water treatment chemicals, oil field chemicals, and construction chemicals, the statement added.

The companies did not disclose financial details of the agreement.