Lead Feature

Thai company to play a role in bioplastics development

Recently, PTT Chemical and US-based Myriant signed an agreement that will further drive technologies to manufacture green chemicals. Next year, Myriant will start up its 14,000 tonnes/year succinic acid plant in the US and PTT Group has invested US$60 million into Myriant to further collaborate in R&D work. PTT's other collaboration is a 50:50 joint venture with Mitsubishi Chemical to set up a 20,000 tonnes/year PBS facility and develop alternative technologies to produce substrates for bio-succinic acid (BSA). The second phase will be constructing a 30,000 tonnes/year PBS and BSA plant. The company expects to start commercial operations by late 2014 and plans to market the products both domestically and internationally.

Speaking to PRA recently, Pramin Phantawesak, President of PTTPM, says the above products will be added on to the marketing arm's sales by PTT Group as well as others in the pipeline.

PRA: With Thailand becoming a hub for bioplastics, what is PTTPM's role in developing the bioplastics market in the country?

Pramin: PTTPM provides information to the public and is doing product and market development with key brand owners, converters as well as several research institutes in Thailand and in some Southeast Asian countries. Several formulae have been approved and are being used in our target applications.

PRA: Last year, PTTPM also signed a contract with another Thai chemicals supplier IRPC. What products are being marketed by PTTPM?

Pramin: IRPC is supplying transparent homo PP, UHMW HDPE, green ABS and polymer catalysts as well as polymer additives like impact modifiers. These specialities were launched last year and we are now assisting IRPC to achieve its plan to supply these products to the market.

PRA: How is PTTPM increasing its speciality products base apart from the LDPE and HDPE it has in its portfolio?

Pramin: We are very proud with our continuing efforts to develop unique products to suit specific customers' requirements. We have been doing these special product developments with key global customers since 2000 (during BPE days). Right now, nearly one-fifth of our HDPE capacity is dedicated for these specialities. We aim to double the sales within 4-5 years.

PRA: Are there plans to increase the outputs of HDPE and LDPE?

Pramin: PTT Group is undertaking several feasibility studies but these are still in the study phase. There won't be any new HDPE/LDPE capacity for the next 2-3 years. But, as mentioned, some of the current HDPE/LDPE capacities are and will be moving to more speciality types of products.

PRA: In your opinion will the prices for raw materials stabilise in Thailand this year and what is the future outlook of the prices for these materials?

Pramin: This is one of the most frequently asked questions. Anyone who knows the answer to this will be the world's richest person!

Although the demand/supply balance is believed to be in favour of buyers, world demand is growing faster than one can estimate. We believe the prices of PE/PP are and will be increasing throughout the year and we are passing the bottom of the cycle.

PRA: What is the future outlook of the company?

Pramin: Our vision is to be an international trading house with US$3 billion sales by 2015. Not only are we serving PTT Group but we are also doing trading activities. By then, some 20% of our revenue will be coming from polymer trading from non-PTT manufacturers.