CP to jointly invest 2 bln baht with Nature Works to expand bioplastics business in Thailand

23-Jun-08

The Charoen Pokphand (CP) Group is exploring the prospect of jointly investing 2 bln baht with its US partner Nature Works to expand its bioplastics business in Thailand. Nature Works will provide technology to produce corn-based PLA while CP has expertise in farm crops that would be used as raw materials. The new plant, estimated to produce a minimum 24,000 tpa polylactic acid (PLA) for domestic consumption, will reduce dependence on imports. CPPC, the petrochemical arm of the CP Group, currently sources PLA from Nature Works and Metabolix to serve its packaging business. The bioplastics business in Thailand has not yet taken off significantly due to high cost of production and lack of regulations in the country compelling consumers to use more environmentally friendly products.