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PTT sets global leadership goal in bioplastics industry

By NALIN VIBOONCHART

THE NATION

PTT has set a target to become the world leader in the bioplastics industry by 2018, after it starts up operations at polybutylene succinate (PBS) and polylactic acid (PLA) plants.

The plan will support PTT's goal of being listed on the Dow Jones Sustainability Index (DJSI), which comprises organisations with environmentally friendly processes throughout the business, Prajya Phinyawat, chief operating officer for downstream petrochemicals, said yesterday.

He said PTT had divided its target into short- through to long-term phases. For the short term, the company expects to be a leader in bioplastics business by 2014, when its PBS plant, which will be the first of its kind using bio-based raw materials, is scheduled to commence production.

PTT has set up a joint venture with Mitsubishi Chemical Corp (MCC), the world's fourth-largest chemical manufacturer by sales, to produce PBS in Thailand with an annual capacity of 20,000 tonnes per year. The plant will also produce bio-succinic acid and other by-products.

The Japanese company is also expected to set up a research and development centre for bioplastics in Thailand.

PTT is also in talks with a leading PLA manufacturer to establish a plant in the Kingdom, said Prajya. It is quite confident that the discussions will bear fruit, as Thailand has plentiful supplies of both sugar and cassava that are used as raw materials in making bioplastic products.

A deal is expected to be concluded in the next few months, giving PTT the possibility of operating two kinds of bioplastic plants in the country, he added.

Meanwhile, NatureWorks, a US manufacturer of PLA, is seeking a location for its second plant. It is considering three choices in Southeast Asia, namely Thailand, Malaysia and Indonesia. NatureWorks hopes to decide on its investment project within a couple of months.

There is also a Chinese company operating in the business, with a capacity of 5,000 tonnes per year, Prajya said.

He said that if PTT could conclude a deal to invest in a PLA plant this year, the operation should start up by 2015. By that time, the company could be a leader in the business in Asia. Then, after gaining more knowledge in the overall industry, PTT targets becoming the global bioplastics leader by 2018, which would complete its long-term plan in the business, he added.

"Bioplastics is a global trend. Thailand has more potential thanks to agricultural raw materials like sugar and cassava.

We are the second-largest sugar exporter and the largest tapioca exporter in the world So, the production of bioplastics will not affect sugar and tapioca production for food. That's why we dare to set a target to become the global leader in this industry," he said.

For example, Thailand exports 4.5 million tonnes of sugar per year. PTT, however, will need only 54,000 tonnes to feed its 20,000-tonne-capacity PBS plant. Even when production increases to more than 100,000 tonnes annually, the demand for raw sugar will still be not high enough to cause concern to the sugar industry, he added.

He said plastic made from bio-based raw materials was more expensive that that made from petroleum-based materials. However, once the demand for biodegradable plastic is high enough, prices would likely become more competitive.

Prajya said the company's investment in bioplastics was not only good business sense, but also represented a key factor in its goal of being listed in the DJSI.

Bioplastics operations can help reduce carbon-dioxide emission. The production process of PBS, for example, emits carbon dioxide at half the rate released from petroleum-based plastic pellets, Prajya said, adding that such production would therefore also play a part in efforts to alleviate the problem of global warming.

-- The Nation 2011-07-19

[MaiChai]

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