The Thailand-based Labix Company Limited, a joint venture between Mitsui & Co Ltd and Thai Oil Public Company Limited, has begun production of linear alkylbenzene (LAB) with a capacity of 100,000 tonnes a year, in line with the original plan.
The demand for LAB, which is widely used for the production of detergents as a petroleum-derived raw material, is experiencing a stable demand growth for in the Southeast Asian region with rising population.
The manufacturing facility, located within the Thai Oil petrochemical and refining complex, marks the first LAB-producing company in Southeast Asia to fully integrate the entire manufacturing process from the raw material through the finished products.
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Mitsui and Thai Oil have built a strong partnership through many years of transactions centred on petrochemicals product trading. Based on the foundation of that partnership, local-production for local-consumption business model of Labix, capitalising on both Thai Oil’s stable supply of competitive raw materials and operational expertise and Mitsui's sales network, ensures the competitive advantage of the company.
Mitsui already participates in the manufacturing and sales of palm oil-derived natural raw materials for detergents and surfactants in Malaysia and China. The start of production at Labix allows Mitsui to further leverage its strengths in both the naturally derived and petrochemical raw materials businesses for detergents, and by engaging in the entire value chain from raw materials through finished products such as detergents and surfactants to expand its customer relationships and pursue new business development.