PTT, MCC forms bio-PBS JV

Sorry about the alphabetical soup headline, blame my weird sense of humor =)

The blog covered PTT Limited and Mitsubishi Chemical Company (MCC) before about their planned bio-polybutylene succinate (bio-Pbs) partnership. MCC announced to its investors in December that it is planning to establish operation in Thailand w/ PTT for the production of its bio-Pbs using “low-cost raw materials to enter new markets.” Target production in Thailand is around 20,000 tons/year by fiscal year 2015.

Last week, PTT and MCC announced the formation of their new 50/50 joint venture company PTT MCC Biochem Company Limited. Both will invest around US$200 million (Bhat6.1 billion) to establish the bio-Pbs plant in Thailand, PTT will hold 18m shares of the new JV.

Several news sources indicate the possibility that the joint-venture company would start construction this year.

By the way, the blog apologizes for mixing up PTT Ltd. with PTT Chemical (PTTCH) as one company pointed out that these two entities are quite different when it comes to their bioplastic activities. PTT Ltd. is the parent company of PTTCH but the two act independently and both are publicly traded companies (the operational structures of major Asian chemical companies always mystify me…).

If readers recall, the blog also noted about PTTCH’s joint venture with bio-succinic acid producer Myriant and I speculated  that Myriant could play a big role with PTT and MCC’s bio-Pbs joint venture. This might still be the case though.

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