Thai PTT Chemical plans to acquire 50% stake in NatureWorks for US$150 mln

14-Oct-11

Thailand's largest olefins maker, PTT Chemical Pcl (PTTCH) , plans to acquire a 50% stake in NatureWorks LLC, the world's largest polylactic acid (PLA) manufacturer for US$150 mln, as per Reuters. The acquisition is subject to regulatory approval. US based agribusiness giant Cargill Inc.is currently the sole owner of NatureWorks. NatureWorks supplies a broad family of renewable Ingeo biopolymers made from plants to plastics and fibre markets worldwide, with an annual capacity of 140,000 tons. Marc Verbruggen, president and chief executive officer of NatureWorks, said the company and PTTCH were studying a plan to build a second production plant worth about US$200 mln in Thailand, expecting the new plant to come online in 2015. "PTT Chemical's investment supports NatureWorks intent to globalise its Ingeo manufacturing capability by building a new production facility in Thailand, supporting our Asian customer base and delivering on our commitment to renewable feedstock diversification," Verbruggen said.