PTT Group’s chemical unit PTT Global Chemical PLC (GC), and GC Group’s business unit TOC Glycol Co. Ltd. (TOCGC), are reportedly entering into a collaboration with MCI (Mitsui Chemicals Inc.). According to people familiar with the transaction, Purified Terephthalic Acid (PTA)’s producer SMPC (Siam Mitsui PTA Co., Ltd.) and Polyethylene Terephthalate resin (PET)’s producer TPRC (Thai PET Resin Co., Ltd.) will be managed through the joint initiative.
This collaboration marks the beginning of a trade co-operation between MCI and PTTGC that is expected to foray into bigger markets in future, claim sources.
According to Chemical Engineering, Mitsui Chemicals would reportedly hold merely 26 percent of the shares of SMPC and TPRC, whereas 74 percent of the shares would be retained by TOCG Co. Ltd. and GC.
According to trusted reports, many esteemed dignitaries were present when the deal was being finalized, including Patiparn Sukorndhaman, Board of Directors Chairman, TOC Glycol Company Limited, Supattanapong Punmeechaow, CEO and President, PTT Global Chemical PLC (GC), and Tsutomu Tannowa, CEO and President, Mitsui Chemicals Incorporation.
The President and Chief Operating Officer of PTT Global Chemical PLC, Punmeechaow reportedly stated that the latest collaboration is a step ahead in GC’s strategic advancement, to explore the plastic resin domain in alignment with the business’s overall operational intentions.
Punmeechaow further added that the company’s efforts are not limited to enhancing downstream investment or strengthening their grip in the polymer industry to meet customer expectations, but to generate new business prospects for GC. This would help the company in managing feedstock efficiently for MEG and PX, which would gradually improve business profitability and revenues, the President added.
According to sources familiar with the deal, the primary raw materials will be procured from MEG and GC, and the MCI will provide its technical expertise to the transaction.