SCG, Mitsui Chem to jointly produce LLDPE cast films in Thailand

30 March 2012 22:33  [Source: ICIS news]

HOUSTON (ICIS)--Siam Cement Group (SCG) and Mitsui Chemicals will set up joint operations in Thailand to produce 15,000 tonnes/year of linear low density polyethylene (LLDPE) cast films, the Thai conglomerate said on Friday.

The joint venture firm, called Siam Tohcello Co Ltd (STC), will operate in the Eastern Seaboard Industrial Estate of Rayong province, with commercial production planned for early 2014, SCG said in a filing to the Stock Exchange of Thailand.

Production will primarily cater to customers within Asia, it said.

STC will be joint venture between SCG Chemicals, a wholly owned subsidiary of SCG, and Mitsui Chemicals Tohcello Inc (MCTI), a unit of Japan’s Mitsui Chemicals.

“With a total investment value of a 1,400 MB [Thailand baht (Bt) 1.4bn ($45m)], SCG Chemicals will hold a 45% stake in the project, while MCTI will hold the remaining 55% stake,” SCG said.

STC’s LLDPE cast films are considered as high value-added (HVA) products that will be used primarily in food packaging, and are expected to contribute greatly to hygienic and safe food preservation standards in the consumer and distribution sectors, SCG said.

($1 = Bt30.80)

By: Pearl Bantillo
+65 6780 4359

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