AV Birla woos Kerr McGee for titanium joint venture

The Aditya Birla group is in talks with Kerr McGee Corporation, world's third largest producer and marketer of titanium dioxide, for collaboration in its proposed titanium venture.

Sources close to the development said the Birla group would strike a strategic arrangements with Kerr McGee Corporation to process the raw material using the US firm's technology. The end product will be sold to the foreign company.

The arrangements, they said, will come into play once the Birla group takes over Indian Rare Earths Ltd's synthetic rutile plant. A group spokesperson said, "We do not wish to comment on the issue."

Industry sources said the move will suit Kerr McGee as the company had closed down its plant in Alabama that produced synthetic rutile, a feedstock for pigment production.

The view was supported by Kerr McGee's annual report which says, "Future feedstock can be purchased at lower cost than we can make it."

Meanwhile IREL had placed the proposal for disposal of the synthetic rutile plant before its board. The board decided that a proper method for disposal will be followed.

The company would also have to evaluate the plant for the purpose. T K Mukherjee, chairman and managing director, IREL, said, though discussions had been held with the Aditya Birla group but, being a government enterprise IREL would have to go through the tendering process.

He, however, said that talks were still on with the Aditya Birla group. Mukherjee said the entire procedure was expected to be done by two months.