NatureWorks wants backing for factory

NatureWorks wants backing for factory

NatureWorks LLC, the world's largest maker of polylactic acid polymers, will this year decide whether to build a factory in Thailand.

Based in Blair, Nebraska, the company is a 50:50 joint venture between Cargill Inc and SET-listed PTT Global Chemical Plc (PTTGC).

The decision could be made more quickly if the junta provides support including investment incentives, soft loans or a partial grant, said general manager Viboon Pungprasert.

NatureWorks has delayed investment in the 13-billion-baht plant due to Thailand's political unrest. The project covers two phases, with each producing 75,000 tonnes of polylactic acid for use in bioplastics.

The plant would use farm products such as cassava, sugar and maize.

If the junta provides investment support, the new product plant will be built next year at Rayong's Asia Industrial Estate and be ready for operation in 2017.

Mr Viboon said the investment would support Thailand's bioplastics, an environmentally friendly sector with strong global demand from the car and food industries.

"Thailand has more than 3,000 fossil-made plastic converters and plenty of biopolymer feedstock including cassava, sugar and maize. This will help to raise the competitiveness of the bioplastics industry in Thailand," he said.

PTT Plc, NatureWorks' mother company, is building a 7-billion-baht factory to make biosuccinic acid (BSA) and polybutylene succinate (PBS) in Rayong under PTT MCC Biochem Co.

PTT MCC Biochem is a 50:50 joint venture between PTT Group and Japan's Mitsubishi Chemical Corporation. The plant will be capable of producing 36,000 tonnes of BSA and 20,000 tonnes of PBS a year.

The operation is expected to start early next year.

Athavudhi Hirunburana, PTT's chief of operations, said the bioplastics sector was growing by 20% on average each year.

Polylactic acid and PBS are used mainly in the packaging sector.

Local organic dairy product manufacturer Dairy Home Co yesterday announced it would change its packaging from fossil plastic to bioplastics even though the cost was 20% higher.

Managing director Pruitti Kerdchoocheun said bioplastic packaging would start with yoghurt products and milk.

PTTGC shares closed yesterday on the SET at 65.75 baht, unchanged, in trade worth 616 million baht.

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