Global Green Chemical Pcl (GGC), a subsidiary of Thailand’s leading chemical manufacturer PTT Global Chemical Pcl (PTTGC), is reviewing a plan to set up a multi-billion-baht biochemical complex in Thailand.
The investment plan will be finalised within this year, Jirawat Nooritanon, managing director of GGC, first told infoquest.
The company has started a joint feasibility study with Kaset Thai International Sugar Pcl, a Thai listed sugar manufacturer, to use sugarcane as the project’s feedstock.
“We will start from setting up a sugarcane crushing plant and an ethanol plant first. Then, we plan to build a plant of Lactic Acid and Polylactic Acid (PLA), used as initial substance for producing bioplastic products,” he said.
The complex will be located on 1,000 rai (around 400 acres) of land in Nakhon Sawan province. The crushing and ethanol plants are expected to complete in the next two or three years.
“We are PTTGC’s flagship in ‘green’ business. We have invested in biodiesel business and this biochemical project is our next project. Instead of producing sugar, we will use sugarcane juice to produce biochemical and other by-products in the future,” he added.
The source of fund will come from GGC’s initial public offering (IPO), which it has already submitted the first filing to the Office of Security and Exchange Commission. It expects to launch the IPO in the second quarter of this year.
Some of the IPO proceeds will be used to invest in its second biodiesel plant to boost its production capacity from currently 300,000 tonnes per year to 500,000 tonnes. The new plant is scheduled to start operations in 2018.
NatureWorks, the major PLA producer in the United States, has shown its interest to set up a joint venture PLA plant in Thailand for years thanks to the country’s abundant sugarcane supply. However, the country’s political turmoil and unattractive tax incentives make NatureWorks shift to consider Malaysia as its second option.
Nooritanon believes that this biochemical complex will make the US firm decide to pour the investment into Thailand.