Leading Japanese companies Kuraray and Sumitomo have signed a heads of agreement with Thailand’s PTT Global Chemical (PTTGC) to move ahead with plans to build an engineering plastics plant.

Following a joint feasibility study, the partners have decided to carry out front end engineering and design on the plant that will produce 13,000 t/y of high heat-resistant polyamide-9T (PA9T) and 16,000 t/y of hydrogenated styrenic block copolymers (HSBC). Kuraray will also conduct a feasibility study with an eye to producing 5,000 t/y of 3-methyl-1,5-pentanediol, an isobutene derivative. PTTGC will supply butadiene and isobutene raw materials.

The PA plant is planned to be located in Hemeraj Eastern Industrial Estate in Thailand’s Rayong province. An investment decision will be taken at the end of 2017, and the new joint venture is expected to commence operation in late 2020.

“This partnership is a great opportunity for PTTGC to maximize our feedstock and diversify to specialty products for high-growth market segments including automotive, electrical & electronics, and construction,” said Supattanapong Punmeechaow, PTTGC’s president and CEO, adding that it will also further develop Thailand’s chemical sector and contribute to the country’s economic growth.

The Bangkok-headquartered company, the biggest olefins producer in the ASEAN region, said PA9T’s properties make it ideal for producing lightweight vehicles. HSBC is used in many industries including automotive, construction and consumer goods. The Thai government is promoting a special economic zone – the Eastern Economic Corridor (EEC) – to attract foreign investors, who will benefit from zero corporation tax for up to 15 years, as well as support services, import duty exemption and longer land ownership rights of up to 99 years.