PTT Global Chemical Plc (PTTGC), Thailand's largest petrochemical producer, plans to start a development project to produce two new speciality-grade petrochemicals in Rayong province after it received a 15-billion-baht loan on Tuesday.
Duangkamol Settanung, executive vice-president for finance and accounting, said PTTGC has formed a joint venture with two Japanese firms: Kuraray Co and Sumitomo Corporation.
The three companies established Kuraray GC Advanced Materials Co on June 19. PTTGC holds a 33.4% stake, while Kuraray and Sumitomo own 53.3% and 13.3, respectively.
The project aims to produce and market a high heat-resistant polyamide-9T, with capacity of 13,000 tonnes per year, and hydrogenated styrenic block co-polymers, making 16,000 tonnes per year.
The two products are fundamental raw materials for auto and electronics parts.
The project is expected to be located in Rayong's Hemaraj Eastern Industrial Estate.
"We plan to start operation in 2022," Ms Duangkamol said.
This project underwent a feasibility study for several quarters.
Supattanapong Punmeechaow, president and chief executive of PTTGC, said the company was in talks last month with several technology owners and petrochemical strategic partners to study new production plants to make the raw materials for auto parts, building materials and electronics parts.
Those projects would be located adjacent to the Rayong site.
PTTGC also allocated capital expenditure to develop petrochemical projects in the government's Eastern Economic Corridor scheme over the next five years, allotting 167 billion baht.
The projects in the corridor are meant to gain higher revenue from speciality-grade petrochemicals, making up 30% of total revenue within five years, an increase from 10% in 2017.
Moreover, PTTGC expects to sign a joint venture agreement with Korea-based Daelim Industrial Co in the first quarter in 2019 to start the development of petrochemical crackers in the US.
