President Donald Trump’s administration has approved a $1 billion deal with Paracha chemical companies to build an empire of chemical manufacturing facilities in the United States, as a part of his campaign promise to revive the US-India military relationship.
The White House announced Thursday that Trump had signed an executive order that approved the $1-billion deal between Paracha and the United Kingdom’s British-based Chemical and Biological Production Corporation (CBP).
The president’s order directs that the company will use $1,000 million from the sale of Paracha’s new $50 million facilities to “accelerate and expand its industrial manufacturing capabilities, enhance the production of products for domestic and international markets, and support the United Nations’ Sustainable Development Goals.”
The deal was approved by the Department of Commerce in January.
The move was first reported by Business Insider.
ParaG’s acquisition of the plant will enable the company to produce chemicals for the global chemical industry and is expected to boost the company’s global presence.
In an interview with Business Insider, Paracha CEO Rahul Gupta said the company was excited to be partnering with the Trump administration, which he said had “been very supportive” of the company.
“We are very happy to be a part in this project,” Gupta said.
“It is going to create jobs and boost the industry’s bottom line and give us more money to invest in new facilities.”
The CBP, whose subsidiary is headquartered in India, has been a leading supplier of chemicals to the United State and other countries, and is the largest supplier of chemical chemicals to China.
According to a report from the Washington Post, Parachan was originally planning to build its first factory in the US, but the company decided to pursue the plant in India because of the country’s low carbon footprint and favorable environmental regulations.
Paracha, in its statement, said it would “build and expand an ecosystem for the development of global chemical supply chains” in India.
“The proposed Paracha India plant is expected at a site that will facilitate the creation of new production capacity, which will help Paracha meet the demand for chemicals in India and around the world,” the company said.
The Trump administration has been working to re-engage with India on an “energy-efficiency” initiative that has been widely criticized by environmental groups.
The Trump administration last year withdrew from the Paris Climate Agreement, which pledged to curb carbon emissions from the use of fossil fuels.