Brazil-based Braskem, the world's largest biopolymer producer, has joined hands with SCG Chemicals Plc (SCGC) to build a new plant in Thailand producing bio-based polyethylene, a type of eco-friendly plastic, as part of efforts to reduce carbon dioxide emissions.
The factory is going to be located in Map Ta Phut in the eastern province of Rayong, with a production capacity of 200,000 tonnes a year.
It is a bio-ethylene plant, which will enable the production of bio-based polyethylene.
The facility is also the first of its kind outside Brazil.
"The new plant in Thailand will almost double the existing capacity of bio-based polyethylene to meet the growing global demand for biopolymers, with a particular fast-growing demand for sustainable products in Asia and Europe," said Roberto Bischoff, chief executive of Braskem, as he signed a joint venture agreement on the production.
Called "I'm green", Braskem's bio-based polyethylene is a plastic made from ethanol, which is produced from agricultural sources.
The renewable raw materials can be used for the production of plastics instead of traditional fossil feedstock, such as naphtha from oil.
Bio-based polyethylene promotes a significant reduction of carbon dioxide emissions, which are blamed for causing global warming.
There are a variety of products made from bio-based polyethylene. They include packaging for food and beverages, personal and home care products, toys, houseware and plastic bags.
Tanawong Areeratchakul, chief executive and president of SCGC, said this joint venture is one of the essential strategies of SCGC to expand its sustainable business and innovations for low carbon solutions.
"We aim to increase the amount of our green polymer products to 1 million tonnes annually by 2030," he said.
In 2021, SCGC conducted a joint feasibility study with Braskem to look into the opportunities and potential of a new bio-ethanol dehydration plant in Thailand.
Bio-ethanol dehydration is crucial for the production of bio-based polyethylene.