Thailand: PET and PTA Business PTT Global Chemical Signs JV Agreements with Mitsui Chemicals
Under the contract, PTT Global Chemical will supply feedstock Paraxylene while Tocgc will supply Mono Ethylene Glycol, both essential raw materials for PTA and PET. On the other hand, Mitsui Chemicals will offer technology know-how, technical support as well as marketing and sales network.
Bangkok/Thailand – PTT Global Chemical (GC) together with TOC Glycol Co. (Tocgc), a subsidiary of GC Group, have recently signed joint venture agreements with Mitsui Chemicals, to cooperate in managing Siam Mitsui and Thai PET Resin Co. Siam Mitsui is a Purified Terephthalic Acid (PTA) producer, and Thai PET Resin Co. (TPRC), a Polyethylene Terephthalate resin (PET) producer. The joint venture will act as a good starting point to seek further business cooperation between PTT Global Chemical and Mitsui Chemicals in the future.
Supattanapong Punmeechaow, President and CEO of PTT Global Chemical; Patiparn Sukorndhaman, Chairman of the Board of Directors of TOC Glycol Co; and Tsutomu Tannowa, President and CEO, Mitsui Chemicals signed the joint venture agreements. GC and Tocgc will hold 74 % of the shares in Siam Mitsui and Thai PET Resin Co, while Mitsui Chemicals will hold 26 %.
The joint venture is an important step for GC’s strategic direction, to diversify plastic resin portfolio, which harmonizes with the business strategy of the company’s intention. The firm also intends to expand downstream investment and increase market potential in the polymer business to satisfy its customer’s needs.
Under the joint venture, GC will supply feedstock Paraxylene (PX), key raw material for PTA, and Tocgc will supply Mono Ethylene Glycol, key raw material for PET. Mitsui Chemicals will provide technology know-how, technical support as well as marketing and sales network. The combined strengths of the two joint venture partners will contribute greatly to the JV company’s long-term success.