Vadodara-based Gujarat Alkalies and Chemicals Limited (GACL) has formed joint venture with US$ 59 billion US-based Dow Chemicals, world leader in providing innovative chemicals plastic and agricultural products services around the globe, for setting up a Rs 600 crore plant at Dahej.

The new joint venture company christened as “DOW-GACL Solvdenture Ltd” will be operating under 50:50 equity partnership. This is GACL's first venture with a multinational company.

The current Rs 600 crore plant is being set up at six hectres of land at Dahej where GACL has three existing plants. The plant is expected to produce 2 lakh tonnes chloromethane group of chemicals per annum.

Presently, only 1 lakh tonne of chloromethane are being produced in the country, of which one-third is produced by GACL.

GACL has already approved an ambitious investment plan of Rs 2,600 crore. The plant will be commissioned by year 2011.