[Industry Update]
Leading Indian chemical company Gujarat Alkalies & Chemicals Limited (GACL) recently announced plans to establish a new 50,000-ton-per-year sodium tripolyphosphate (STPP) production line in the Dahej Petrochemical Park, Gujarat, with a total investment of $25 million. The project is expected to commence operations in 2025, elevating GACL to the position of India's top STPP producer while focusing on expanding into the Middle Eastern detergent and industrial water treatment markets.

▍Capturing Middle Eastern Market Opportunities

Strategic Location: The new production line is situated in the port economic zone of Dahej, enabling direct maritime shipping to key Middle Eastern markets (Saudi Arabia/UAE/Iran) with 15%-20% lower logistics costs compared to Chinese exports.

Strong Demand: According to Frost & Sullivan data, Middle Eastern STPP demand exceeds 220,000 tons annually, driven by:
✓ An 8%-10% yearly growth in the detergent industry (fueled by population growth)
✓ Stable demand from the oil industry (used as a corrosion inhibitor in oilfield water treatment, with Saudi Aramco purchasing over 30,000 tons annually)

▍Chinese Manufacturers Face Competition

Price Advantage: Indian-made STPP is projected to be priced at $780-$810/ton CIF Middle East, making it more competitive than Chinese products ($820-$850/ton).

Supply Chain Restructuring: Middle Eastern clients may gradually shift toward "Made in India" products, posing order diversion risks for major Chinese exporters like Hubei Xingfa and Yunnan Chengxing.

▍Technology and Environmental Assurance
GACL states that it will implement:
① A self-sufficient raw material system (phosphorus + caustic soda integration) to reduce costs by 10%-15%
② Zero Liquid Discharge (ZLD) technology to address environmental concerns

[Extended Insight]
With Middle Eastern firms like Saudi Arabia’s Tasnee planning local production, the regional STPP market may transition from "China-India supply dominance" to greater self-sufficiency. The global phosphorus chemical industry is undergoing a new wave of regional realignment.

(Data sources: ICIS price monitoring, GACL annual reports, Middle East Petrochemical Association whitepapers)