A joint venture company between China-based Zhejiang Lonsen and India-based Kiri Dyes and Chemicals inaugurated a new dyestuff plant on 19 July 2009 in Vadodara, the Gujarat state of India. The joint venture, called Lonsen Kiri Chemical Industries Ltd (LKCIL), is located in the Dudhwada village and manufactures reactive dyes.
Construction of the plant started in September 2008 and was completed within seven months. The project provided about 500 jobs in the region.Lonsen Kiri dyestuff manufacturing plant background In September 2007, Zhejiang Longsheng Group signed a Memorandum of Understanding (MoU) with Kiri Dyes and Chemicals for a strategic cooperation and setting up the dyestuff plant by forming a joint venture.
Under the MoU, the registered initial capital costs of about $10m for setting up the plant were funded by both companies. Longsheng holds a 60% stake in LKCIL while the remaining 40% is held by Kiri Dyes and Chemicals (KDCL).LKCIL plant design and construction
The LKCIL plant incorporates a combination of technology and business practices from China and India. It has environmentally friendly features such as an effluent treatment plant and a rain-harvesting facility. The effluents are recycled and reused.The plant is designed with the expertise of both Lonsen and Kiri. The companies have collaboratively designed the plant and share knowledge in the product technology, engineering designs and effluent treatment processes, including the economy of scale, and sales and marketing.