New plant to boost exports

PTT Asahi Chemical has started building Thailand's first plant to produce acrylonitrile (AN) and methyl methacrylate (MMA) from natural gas for textile and electronics industries.

The company, a 48.5:48.5:3 joint venture between PTT, Asahi Kasei and Marubeni, said the plant could help the country reduce imports of AN by 140,000 tonnes per year worth Bt7.75 billion and generate another Bt7.13 billion from exports of its raw materials.

Its president Pailin Chuchottaworn said the production of AN and MMA will use propane gas from PTT's natural gas separation plant.

"This will be the first plant in the world which uses propane as the feedstock rather than propylene," Pailin said.

Both AN and MMA are primary raw materials for the production of high-durable electrical appliances such as refrigerators, washing machine, computer cases, optic fibres, car tail light and acrylic fibre for textile industry. "This will boost the export market and reduce production cost, as all feedstock is sourced locally. This would also add value to natural gas," Pailin said.

PTT Asahi Chemical recently purchased a 120-rai plot at Hemaraj Eastern Industrial Estate in Map Ta Phut, for the plant.

The investment follows the commercialisation of Asahi Kasei's technology for AN production from propane instead of propylene.

 The use of propane as feed enables lower production cost than the conventional use of propylene feed.

The new plant will enjoy costs competitiveness in the global market for AN, serving as an important key in the strategic expansion of Asahi Kasei's AN business.

Meanwhile, the plant will produce 70,000 tonnes of MMA per year, which would complement Asahi Kasei's present production in Japan with a base for supply in the growing Southeast Asia market. It will also raise supply capacity to 170,000 tonnes a year.

AN and MMA production are expected to begin early next year.