Thai chemical company PTT Global Chemical (PTTGC) has signed two agreements with Japanese firms Toyota Tsusho and Sanyo Chemical Industries (SCI) to jointly carry out engineering studies for a propylene oxide (PO) and polyether polyols complex.

A total investment of around $1 billion will be made in the plants which will be located on the Hemaraj Eastern Industrial Estate in Rayong. Toyoto Tsusho will partner PTTGC to study a 200,000 t/y PO plant, with Sanyo Chemical Industries joining for the study on a 130,000 t/y polyols facility.

The engineering work follows the successful completion of a preliminary joint feasibility study which began early this year. Front end engineering design (FEED) and verification of the project’s viability will now take place before a final investment decision is made, targeted for 2016, when the next phase of engineering, procurement and construction will proceed.

PTTGC said that it would secure a reliable and stable supply of propylene and ethylene oxide feedstock, while SCI will provide its technology know-how and R&D development on polyols.

Toyota Tsucho, a trading company owned 21.7% by Toyota Motor Corporation, will provide logistics and order management expertise from its strong market and global sales network, particularly in India and Asia-Pacific for both PO and polyols.