Jun. 19, 2018
Sumitomo Corporation signs joint venture agreement with PTT Global Chemical (Thailand) and Kuraray on manufacturing/sale of butadiene derivatives
Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President and Chief Executive Officer: Masayuki Hyodo), together with PTT Global Chemical Public Company Ltd. (Head Office: Bangkok, Thailand; President & CEO: Supattanapong Punmeechaow, hereinafter, “PTTGC”) and Kuraray Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President: Masaaki Ito; hereinafter, “Kuraray”), have been jointly conducting a detailed feasibility study on the manufacture and sale of butadiene derivatives (Note 1) in Thailand (hereinafter, “the Project”) and recently concluded a joint venture agreement with these partners.
Since September 2016 the three companies have been conducting a detailed feasibility study on manufacturing and sales of PA9T heat-resistant polyamide resin (Note 2; production capacity: 13,000 tons) and HSBC hydrogenated styrenic thermoplastic elastomer (Note 3; production capacity: 16,000 tons) at a candidate location on the Hemaraj Eastern Industrial Estate located in the petrochemical complex at Map Ta Phut in Rayong province, Thailand. 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.
(Note 1) Butadiene derivatives
Petrochemical products produced from butadiene (a basic chemical raw material) through chemical reactions
(Note 2) PA9T heat-resistant polyamide resin
A polyamide super-engineering plastic offering low water absorption, high heat resistance, high chemical resistance and dimensional precision whose uses are expanding to electrical and electronic components as well as automotive parts
(Note 3) HSBC hydrogenated styrenic thermoplastic elastomer
A material with rubber-like elasticity across a wide range of temperatures but which can be molded like plastic when heated. It offers heat, weather and chemical resistance as well as electrical insulation. By changing its composition, the material can be employed in a broad scope of applications, including automotive parts, electric equipment parts, daily necessities, and medical equipment.
|■ Outline of joint venture agreement|
|Name of company||:||TBD|
|Address of head office||:||TBD|
|Description of business||:||Manufacturing and sales of butadiene derivatives|
|Capital contribution ratios||:||Kuraray Co., Ltd.: 53.3% (*)
PTT Global Chemical Public Company Ltd.: 33.4%
Sumitomo Corporation: 13.3% (*)
(*) Indirect holdings via a holding company to be established for investing in the joint venture
■Sumitomo Corporation’s Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to “Achieving Harmony with the Global Environment” and “the Development of Local Communities and Industries” .