The Siam Cement Public Company Limited (SET: SCC) on Wednesday announced that Thai Polyethylene Company Limited (or TPE), a wholly owned subsidiary of SCG Chemicals Public Company Limited (SCGC) (a wholly owned subsidiary of SCC) has entered into a joint venture agreement with Braskem S.A. through its subsidiaries Braskem Netherlands B.V. and Braskem Europe GmbH (or collectively called as Braskem) to establish a joint venture company that produces bio-ethylene (Green-Ethylene from ethanol).
SCGC will hold a 49% stake in the joint venture, while Braskem will hold the other 51% stake. The joint venture establishment will be completed upon the regulatory requirement and other conditions clearance from the relevant authorities.
Green-Ethylene from this joint venture will be delivered to SCGC’s downstream plants to produce Green-Polyethylene (Green-PE) which is characterized with a negative carbon footprint and embraced by consumers in packaging and finished products globally. The joint venture company’s facilities will be in Map Ta Phut, Rayong, Thailand, while additional financial details of this investment are expected in 2024 upon final investment decision (FID).
SCGC is committed to sustainability and advancing circular economy for a better society and environment. The joint venture company will bring proven Green-Ethylene technology and further reaffirm SCGC’s leadership in sustainability through reduced carbon emission. SCGC has a target to annually produce 1 million tons of green polymer by 2030.
Braskem is the world’s leading pioneer of green polymer and is dedicated to creating sustainable solutions in the chemical sector. With offices in the Americas, Europe and Asia, Braskem serves customers in more than 70 countries. Braskem’s growth and internationalization strategy, supported by innovation, has made it the largest producer of thermoplastic resins in the Americas, the world’s largest producer of biopolymers, and the largest polypropylene (PP) producer in the United States. In 2022, Braskem had net revenue of approximately 18,731 million USD, and total assets of approximately 17,775 million USD.