PTT Global Chemical (PTTGC) has partnered with one of Thailand’s largest suger producers to set up the country’s first bioplastic industrial estate. This is a significant win for the country, which is vying to become the global hub for bioplastics manufacturing.
The new industrial estate will take advantage of Thailand’s naturally abundant sugercane that is used as feedstock to manufacture bioplastics.
Supatanapong Punmeechaow, CEO and President of PTTGC, said: “We are planning to locate the industrial estate in the central region, where farmers grow a plenty of sugarcane”.
Through the new joint venture, the firms expect to invest about $143 million.
It will take about 30 months to complete construction of the industrial estate and start production.
The deal will be finalised this year, reports business news website DealStreetAsia.
Thailand is currently vying to become the global hub for bioplastics manufacturing, although other countries in the region have also introduced incentivises for bioplastics manufacturers.
PPTGC hopes this new joint venture will help the country win this race.
In May, NatureWorks, one of the world’s largest suppliers of polymers, said it would be choose between Thailand and Malaysia as the location of its new $200-million polylatic acid (PLA) production plant.
Punmeechaow said: “If we can make this bio-plastic hub happen, I am sure that NatureWorks will choose to set up… [its] manufacturing plant in Thailand.”
The Thai Government has previously supported the local bioplastics industry. Earlier this year the Ministry of Commerce bought 10,000 tonnes of stockpiled rice to produce bioplastics products.