MCC PTA networth turns negative, initiates steps to revive

Largest Japanese investor in West Bengal MCC PTA India, which had moved to Board for Industrial and Financial Reconstruction after its networth had turned negative, has demanded higher anti-dumping duty and measures to curb input cost.
"Purified terephthalic acid (PTA) is a cyclic market and huge excess capacity in the Asian countries has led to problems," MCC PTA Managing Director Manabu Chikumoto told PTI.
He said provisonal duty had been imposed by the Centre after the industry demanded it but there is need for higher anti-dumping duty as the gap was still high.
"West Bengal has been supportive toward the company and has cleared the incentive dues till Janaury, 2014. There is no pending demands from the state.

"We are happy that the state has also allowed us to switch from furnance oil to state grid power and use of coal for heating oil that will help us in reducing cost by 1-2 per cent," he said.
The company had pumped Rs 300 crore in switching to new power and energy sources.

Company sources said its networth had turned negative as the down-cycle had begun in 2011 and was yet to revive.
MCC PTA India, Indian Oil and Reliance had sought anti- dumping duty on PTA to protect the domestic industry from Chinese, South Korean and Indonesian players.

MCC PTA, an arm of Japanese major Mitsubishi had to report to BIFR, the nodal agency for sick industries, which is yet to begin hearing.
The sources said the company will continue to produce at 1.2 mt and there is no plan to cut it.
Mitsubishi has so far invested Rs 3,600 crore in the Bengal plant. The firm has an annual capacity of 1.27 million tonnes, they added.