Bangkok--6 Jan--HSBC
PTT Asahi Chemical Co. Ltd. (PTT Asahi) signed bank facility agreements in relation to the development of its new petrochemical plant, located in the Map Ta Phut area of Rayong province, Thailand. PTT Asahi represents the first venture between three companies; PTT Plc. (48.5% shareholding, Thailand), Asahi Kasei Chemicals Corporation (48.5%, Japan) and Marubeni Corporation (3.0%, Japan). Commercial operation of the new plant is scheduled to start in late 2010.
Total loan facilities are US$ 400 million, provided by Mandated Lead Arrangers, The Bank of Tokyo Mitsubishi-UFJ Ltd., Mizuho Corporate Bank Ltd., The Norinchukin Bank, Sumitomo Mitsui Banking Corporation, The Sumitomo Trust & Banking Co. Ltd., HSBC and ING Bank N.V. Despite difficult prevailing financial conditions and volatile commodity prices, the limited-recourse financing that has been secured demonstrates both shareholder and lender commitment to PTT Asahi.
Per annum, the new plant is projected to produce 200,000 tonnes of acrylonitrile (AN) and 70,000 tonnes of methyl methacrylate (MMA). The AN plant will be the world’s first commercial-scale plant of its type, using propane as its raw material, and incorporating the latest and cost-competitive technology developed by Asahi Kasei Chemicals Corporation. Propane will be supplied by PTT’s gas separation plant. PTT will additionally supply acetone feedstock from its newly-completed PTT Phenol plant, and other utilities via its PTT Utility.
AN is used mainly in the production of acrylic fibre — a base material used in the production of textiles, carbon fibre, as well as ABS plastics for automobile parts, electronic appliances and IT equipment. MMA, used in the production of PMMA plastic, is again found in automobile parts & electronic appliances, as well as LCD backlight units, cast sheeting, paints and coatings. The AN production will be marketed domestically in Thailand, whereas MMA production will be sold throughout the SEA region by PTTAsahi. Any remaining capacity will be marketed and offloaded by Asahi Kasei Chemicals. The plants will also produce AMS fertilisers to be sold mainly in the Thai domestic market.
PTT Asahi will help contribute to Thailand’s strategy of maximising and adding to the value of its natural gas resources. The company is anticipated to benefit in several ways; from a highly-competitive and secure propane supply from PTT, from the new efficient technology developed by Asahi Kasei Chemicals and, finally, the extensive marketing networks of its shareholders.
Media enquiries to Varanandha Sutthapreeda on 0-2614-4609 or Savittree Muadmuang on 0-2614-4606.