Bangkok, 9 August 2018: PTT Global Chemical PLC (GC) and together with TOC Glycol Co., Ltd. (TOCGC), a subsidiary of GC Group, announced to sign joint venture agreements with Mitsui Chemicals Inc.(MCI), 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. As a result, this joint venture is a good starting point to seek for further business cooperation between PTTGC and MCI in the future.
Mr.Supattanapong Punmeechaow, President and CEO of PTT Global Chemical PLC (GC); Mr. Patiparn Sukorndhaman, Chairman of the Board of Directors of TOC Glycol Co., Ltd.; and Mr. Tsutomu Tannowa; President and CEO, Mitsui Chemicals Inc.; were on hand to sign the joint venture agreements. GC 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 GC’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 GC 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, GC 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 JV companies long-term success.
GC, the chemical flagship of the PTT Group, operates in eight areas of businesses. It has a combined chemical and petrochemical capacity of 10.2 million tons per year and a crude oil and condensate distillation capacity of 280,000 barrels per day. PTTGC is expanding its business into performance and specialties chemicals.
MCI is one of the leading petrochemical companies in Japan as well as globally, with turnover of approximately 1,329 billion Yen in 2017 with approximately 17,277 employees. MCI maximizes group’s strengths by focusing on, a truly global platform and diverse human resources and a technological progress to create material to meet customer needs including creating high-value-added products and services.