Tie-ups: Sumitomo Corp/NFC in jv for sulphuric acid tank terminal; Lotte Chemical Indonesia to supply ethylene to Asahimas Chemical in ten-year contract

Japan’s Sumitomo Corporation has set up a joint venture with Thailand's tank terminal operator NFC Public Company Limited to operate a sulphuric acid tank terminal business. By acquiring a strategically located terminal in Map Ta Phut Port and leveraging its expertise in sulphuric acid terminal operations, Sumitomo says it aims to enhance operational safety and logistics service reliability, while creating a hub for an expanded business footprint across neighbouring Asian countries.

Sulphuric acid is one of the most widely used basic chemical products globally, with applications in agriculture, industry, mining and textiles. It is primarily produced through sulphur burning and as a byproduct of nonferrous metal smelting. Global demand is projected to grow from approximately 290 million tonnes in 2023 to around 330 million tonnes by 2029, mainly for fertiliser production in response to rising food demand due to population growth, alongside increased use in metal smelting at copper, lithium and rare earth metal mines.

Asia accounts for about 50% of global sulphuric acid demand and continues to lead the market. New sulphur-burning and copper smelting facilities in countries like China and Indonesia are expected to increase supply, intensifying the need for robust marine trade infrastructure, small-lot distribution and logistics systems within the region.

Thailand, with its growing economy, imports around 600,000 tonnes of sulphuric acid annually for numerous applications including petrochemicals, bioplastics and food additives. Demand is expected to remain stable over the medium to long term.

NFC is a logistics-focused company engaged in warehousing, tank terminal operations for sulphuric acid, ammonia and gasoline, alongside ammonia distribution. Originally established in 1982 through a joint investment by the Thai government and private funds as a fertiliser manufacturer, the company later transitioned into logistics.

Its tank terminal is located in Map Ta Phut Port in Rayong Province, offering excellent access to eastern Thailand, an area densely populated with petrochemical facilities and robust sulphuric acid demand.

Sumitomo Group oversees Interacid Group , a major global sulphuric acid trading company operating in 16 countries. Interacid handles approximately 30% of the world's marine sulphuric acid trade and is known for both its trading functions and ownership of storage tanks. This enables the group to offer flexible procurement and supply services, reliably delivering required volumes to customers as needed.

This new joint venture represents a step forward in reinforcing logistics infrastructure in Thailand, where Sumitomo adds it had already been active in sulphuric acid distribution. By acquiring a local terminal, the company will strengthen its base in Asia, a strategic focus region. Through service enhancements supported by Interacid's operational expertise, Sumitomo will expand its logistics capabilities in Thailand.

In other news, Lotte Chemical Titan Holding Bhd’s (LCTH) subsidiary PT Lotte Chemical Indonesia (LCI) has signed a ten-year sale and purchase agreement with PT Asahimas Chemical for the supply of 150,000 tonnes/year of ethylene to Asahimas.

"Lotte Chemical Indonesia (LCI) will supply ethylene, a key raw material in the petrochemical industry, to ASC for its production processes," the company said without specifying the volume of supply.

LCI has a newly built US$3.9-billion large-scale petrochemical plant in Indonesia. The 1-million-tonne/year naphtha cracker was slated to begin commercial production in April but has delayed the start up to September or October due to poor margins, a company source said. Trial runs were underway in early April, the source added.

The companies entered into a ten-year long-term sales and purchase agreement for the supply of ethylene to bolster petrochemical supply chain in the country and to reduce dependency on imported raw materials, LCI said in the statement.

Asahimas is an integrated chemical company producing basic chemicals for downstream industries in Indonesia.

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