GGC and KTIS to invest in a bioindustries complex in Thailand

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Type of post: NEWS IN BRIEF.

Global Green Chemical Public Company Limited (GGC), a subsidiary of Thailand’s chemical manufacturer PTT Global Chemical Public Company Limited (PTTGC), and Kaset Thai International Sugar Corporation Public Company Limited (KTIS) have signed a memorandum of understanding to invest in a bioindustries complex in Nakhon Sawan Province (Thailand) on 6th February. Each firm owns half of the (yet-to-be-named joint venture) that will develop the complex after having conducted a feasibility study which began in 2016.

Figure 1. Signing of the memorandum of understanding by GGC and KTIS representatives

The following table summarizes the information available about the new project:
[Sources:
- News detail of the Stock Exchange of Thailand, 6/2/2018.
- Bio-economic    joint venture in the offing, Bangkok Post, 7/2/2018.]
Name
Nakhon Sawan Biocomplex (NBC).
Location
Land area of approximately 320 ha in Taklee district, Nakhon Sawan Province (Thailand).
It is adjacent to KTIS’s sugar milling plant and sugar cane cultivation area.
Phase 1
- Sugar-cane crushing plant (2.4 million tons per year).
- Ethanol plant (600,000 litres per day).
- Biomass power plant (85 MW).
- Infrastructure to support both phases.
Investment: 7,650 million baht (roughly 200 M€).
Phase 2
Production of high-value biochemical, bioplastics and functional food.
Investment: 10,000 – 30,000 million baht (roughly 260 – 770 M€).
According to previous information, Polylactic Acid (PLA) could be one of the products to be manufactured in the Phase 2.
Timeline
- In late February, both parties will conduct a road show in Japan to attract overseas investors to the NBC project, after which they will visit Europe and the US.
- Ground breaking construction ceremony is expected in 3Q 2018.
- The approval of the newly revised Thailand Sugar Act, which will allow ethanol producers to use sugar juice as feedstock, will be crucial for the project.
- If everything proceeds as scheduled, the phase 1 will begin commercial operations in early 2020.

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