Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) has inked a memorandum of understanding (MoU) with INEOS Acetyls International, United Kingdom (INEOS).

The MoU is for incorporation of a joint venture company (JV company) in India, by way of subscription to the Share Capital of the JVCo., wherein GNFC will hold 50 percent of the share capital and the balance 50 percent will be held by INEOS. The agreement will be executed later.

The JV company will carry on the business in relation to construction and operation of a world-scale acetic acid (AA) plant in India, together with a joint marketing agreement for the sale and distribution of AA, manufactured by the JV company in Indiam and such other matters as may be agreed from time to time.

The joint venture company will be classified as an associate company of GNFC once the investment is complete.