The RPG group-owned company, Phillips Carbon Black Ltd has informed that it has formed a joint venture with subsidiaries of Vietnam National Chemical Corp. (Vinachem) for the set up of a carbon black facility of 1,00,000 MT and co-generation power plant of 16MW in Vietnam.

The companies signed a memorandum of understanding for a feasibility study on a carbon black facility last July. The plant will be the first of its kind in Vietnam.

Separately, Phillips Carbon Black is also looking at hiking carbon-black prices by 15 percent.

Carbon black, made from crude oil and used to make tyres, has become more expensive after the crude prices have touched record highs.

Recently, Phillips Carbon Black reported a 3.8 times increase in net profit at Rs 89.30 crore in 2007-08 against Rs 23.53 crore in the previous year. However, turnover grew only by 3.6 per cent during the comparable period to Rs 1039.31 crore in last fiscal from Rs 1002.71 crore in 2006-07.