PTT Global Chemical PLC (PTTGC; Bangkok, Thailand; www.pttgcgroup.com) and TOC Glycol Co., Ltd. (TOCGC), a subsidiary of PTTGC, announced plans to sign joint venture (JV) agreements with Mitsui Chemicals, Inc. (MCI; Tokyo, Japan; www.mitsuichem.com) to cooperate in managing Siam Mitsui PTA Co., Ltd. (SMPC), a Purified Terephthalic Acid (PTA) producer, and Thai PET Resin Co., Ltd. (TPRC), a Polyethylene Terephthalate resin (PET) producer.
PTTGC and TOCGC will hold 74% of the shares in SMPC and TPRC, while Mitsui Chemicals will hold 26%.
According to Mr. Punmeechaow, “This joint venture is an important step for PTTGC’s strategic direction, to diversify plastic resin portfolio, which harmonizes with the business strategy of the Company’s intention. Not only does we intend to expand the downstream investment and increase market potential in polymer business to satisfy customer’s needs, but we also generate business opportunities for PTTGC to simultaneously enhance the feedstock management for both PX and MEG, which will eventually result in better profitability throughout the business.”
Under the joint venture, PTTGC will supply feedstock Paraxylene (PX), key raw material for Purified Terephthalic Acid (PTA), and TOCGC will supply Mono Ethylene Glycol (MEG), key raw material for Polyethylene Terepthalate Resin (PET). MCI 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.