Thailand's PTT Chemical to buy 50% stake in bioplastics firm NatureWorks
PTT Chemical is buying from Cargill a 50% stake in NatureWorks, a leading bioplastics manufacturer and supplier of renewable Ingeo biopolymers made from plants to global plastics and fibers markets.
PTT will pay $150 million for its 50% part in the venture, it said.
"The Thai Government encourages an investment in green chemicals, and particularly bioplastics which have high growth potential in the South East Asian market" said Thailand's Minister of Energy, H.E. Mr. Pichai Naripthaphan.
"PTT Chemical has made a significant step in achieving Thailand's strategic objectives of becoming a regional hub for green technologies and solutions,” he added.
"This is a significant investment by a leading chemical company which will allow NatureWorks to continue its aggressive growth while expanding its capacity to meet global demand for bio-based products,” said Marc Verbruggen, CEO of NatureWorks. “PTT Chemical's investment demonstrates a significant milestone in moving Ingeo bio-based plastics & fibers to the polymer mainstream.”
"PTT Chemical's investment supports NatureWorks’ intent to globalize its Ingeo manufacturing capability by building a new production facility in Thailand, supporting our Asian customer base, and delivering on our commitment to renewable feedstock diversification,” he continued.
“We anticipate bringing the new plant online in 2015 and expect to announce further details on this expansion later this year."
Ingeo offers the performance of conventional plastics and fibers with a fraction of the greenhouse gas emissions and much lower non-renewable energy requirements, according to the company.
Because it is made from renewable plant material, Ingeo has inherently more stable pricing, contrasting sharply to the massive price swings observed from fossil based polymers, according to Mr. Veerasak Kositpaisal.
NatureWorks has seen steady 25 to 30 percent increases in annual product demand over the past several years, it said.
In the last two years, NatureWorks doubled its Ingeo supply availability by bringing online the full production capacity of its Blair, Nebraska, processing facility.
The proposed new Ingeo facility in Thailand would be NatureWorks' second production plant.
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