GHCL (formerly Gujarat Heavy Chemicals) is considering the acquisition of Romanian soda ash maker Uzinele Sodice Govora (USG). The transaction, once it takes place, will be GHCL“s second buyout in Ro…
GHCL (formerly Gujarat Heavy Chemicals) is considering the acquisition of Romanian soda ash maker Uzinele Sodice Govora (USG). The transaction, once it takes place, will be GHCL“s second buyout in Romania after its takeover of a 300,000 tonne soda ash company, SC Bega Upsom SA, in December 2005. USG, a 200,000 tonne soda ash producer, has mortgaged its assets with GHCL to tackle a financial crisis. The proposed acquisition is part of GHCL“s target of quadrupling its capacity to 4 million tonnes by 2008, which should make it the second largest soda ash producer in the world. “We are also in talks with soda ash companies in China and the US. The talks are likely to be over by June”, Chairman Sanjay Dalmia said. “Asia is a big market and the Chinese acquisition will help us emerge a big player in Asia”, he said. With its acquisitions in soda ash and textiles, GHCL“s estimated turnover by 2008-09 will be close to INR 45 billion, compared to INR 8.21 billion in 2006, the chairman said.