Japanese chemical firm Kuraray Co. Ltd has entered a into joint venture agreement with Thai petrochemical company PTT Global and chemical firm Sumitomo Corp. to produce butadiene derivatives. Kuraray will have 53.3% share in the jv while PTT and Sumitomo will 33.4% and 13.3% respectively.
To be based in Rayong, Thailand, the joint venture company Kuraray GC Advanced Materials Co. Ltd, will produce heat-resistant polyamide (PA9T) and hydrogenated styrenic block copolymer (HSBC) products. Hemaraj Eastern Industrial Estate (Map Ta Phut complex) in Rayong has been identified as a candidate for the production site.
This latest move follows on an agreement signed in 2016 to conduct a feasibility study. The joint venture partners have been jointly conducting a detailed feasibility study on the manufacture and sale of butadiene derivatives in Thailand and recently concluded a joint venture agreement with these partners.
With the conclusion of the joint venture agreement, the three companies will begin application procedures with the relevant authorities and will be working out final investment decisions and other details pertaining to the joint venture company.
The project can expect to see steady growth with competitive raw material and utilities supply from PTTGC and the PTT Group, Kuraray’s production technology and sales & marketing know-how, and Sumitomo’s global trade network.
Sumitomo is aiming for global business expansion in the petrochemicals business with its strong trade network and successful projects.
Kuraray also plans to solely carry out production of 5KTA 3-methyl-1.5-pentanediol (MPD) at a production facility to be built on the same premises as the production facility for the aforementioned butadiene derivatives. Kuraray will establish a wholly-owned subsidiary for the manufacturing and sale of the MPD.