Dutch biotechnology company Corbion Purac is taking the next step in the bioplastics value chain by setting up a poly lactic acid (PLA) plant in Thailand. With entry into PLA, Corbion Purac intends to bring new biodegradable solutions to the plastics industry, and increase global PLA production capacity by a further 75 kilo tonne per annum (kTpa). This announcement forms a part of Corbion's updated strategic direction for 2015 - 2018.
PLA is a biobased plastic currently used in packaging and food serviceware, and is increasingly becoming the material of choice for more demanding applications in automotive, electronics and textiles.
Tjerk de Ruiter, CEO of Corbion, said, “As part of our strategic review we confirmed there is an attractive demand outlook for PLA, albeit at a lower growth pace than previously assumed. Given our strong position in lactic acid, our unique high heat technology and the market need for a second PLA producer, we plan to forward integrate in the bioplastics value chain, from being a lactide provider to a PLA producer."
Corbion intends to invest in a 75 kTpa PLA plant (estimated Euro 60 million capex) in Thailand. "We will only commence with this investment if we can secure at least one-third of plant capacity in committed poly lactic acid volumes from customers,” added de Ruiter. Corbion will also continue exploring strategic alliances as part of its PLA growth strategy, in order to enhance the business opportunities while mitigating the associated risks.
Corbion Purac will continue selling lactides to both existing and new PLA polymerization customers. Lactide sales for the coatings and adhesives markets will also continue. Many of Corbion's existing polymerization customers have already successfully built a strong local presence and distribution channel, with great market coverage. Worldwide PLA capacity is almost sold out and with the poly lactic acid market expected to grow to 600 kTpa by 2025, the market is seeking additional PLA suppliers.
PLA is a biobased plastic currently used in packaging and food serviceware, and is increasingly becoming the material of choice for more demanding applications in automotive, electronics and textiles.
Tjerk de Ruiter, CEO of Corbion, said, “As part of our strategic review we confirmed there is an attractive demand outlook for PLA, albeit at a lower growth pace than previously assumed. Given our strong position in lactic acid, our unique high heat technology and the market need for a second PLA producer, we plan to forward integrate in the bioplastics value chain, from being a lactide provider to a PLA producer."
Corbion intends to invest in a 75 kTpa PLA plant (estimated Euro 60 million capex) in Thailand. "We will only commence with this investment if we can secure at least one-third of plant capacity in committed poly lactic acid volumes from customers,” added de Ruiter. Corbion will also continue exploring strategic alliances as part of its PLA growth strategy, in order to enhance the business opportunities while mitigating the associated risks.
Corbion Purac will continue selling lactides to both existing and new PLA polymerization customers. Lactide sales for the coatings and adhesives markets will also continue. Many of Corbion's existing polymerization customers have already successfully built a strong local presence and distribution channel, with great market coverage. Worldwide PLA capacity is almost sold out and with the poly lactic acid market expected to grow to 600 kTpa by 2025, the market is seeking additional PLA suppliers.