Current PTT petrochemical and refining unit

PTT Asahi Chemical Co Ltd (PTT Asahi) has signed agreements for US$400 million loans in a bid to build its new petrochemical plant in Hemaraj Eastern Industrial Estate (Map Ta Phut) in Rayong Province.

PTT Asahi is the first venture among Thailand’s petroleum and gas giant PTT Plc, which is holding 48.5 percent of the shares, Japan’s Asahi Kasei Chemicals Corp, with 48.5 percent stake, and Marubeni Corp, with 3.0 percent stake.

The loans will be provided by the Bank of Tokyo Mitsubishi-UFJ Ltd, Mizuho Corporate Bank Ltd, Norinchukin Bank, Sumitomo Mitsui Banking Corp, Sumitomo Trust & Banking Co Ltd, HSBC and ING Bank.

HSBC yesterday disclosed in a statement that the new plant whose operation is expected to start in late 2010 will produce 200,000 tonnes of acrylonitrile (AN) and 70,000 tonnes of methyl methacrylate (MMA) a year.

The plant will be the world’s first commercial-scale plant of its type, using propane as its raw material with the latest technology developed by Asahi Kasei Chemicals Corp. 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 is meanwhile used in the production of polymethyl methacrylate (PMMA) plastic for automobile parts and electronic appliances, as well as LCD backlight units, cast sheeting, paints and coatings.

The AN production will be marketed domestically in Thailand while MMA production will be sold throughout the Southeast Asian region by PTT Asahi. Any remaining capacity will be marketed and offloaded by Asahi Kasei Chemicals.

In addition, the plants will also produce ammonium sulphate (AMS) fertiliser to be sold mainly in the Thai market, the statement said.