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Braskem, the leading global biopolymer producer, has entered into a joint venture (JV) agreement with SCG Chemicals, a prominent petrochemical company in Thailand and Southeast Asia. The JV, set to be named Braskem Siam Company Limited, is subject to clearance from relevant anti-trust authorities and a final investment decision by the partners.

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The primary aim of this joint venture is to produce bio-ethylene through the dehydration of bio-ethanol. This process technology is the result of a partnership agreement between Lummus Technology LLC and Braskem B.V. to develop and license this innovative approach. A notable benefit of this technology is its potential to significantly reduce the carbon footprint of plastics, contributing to global efforts to combat climate change.

The bio-ethylene production facility is planned to be located in Map Ta Phut, Rayong, Thailand. Remarkably, this plant, which will enable the production of bio-based polyethylene, is set to be the first of its kind outside Brazil. Once operational, the new facility in Thailand is expected to nearly double the existing capacity for bio-based polyethylene. This expansion is aimed at meeting the growing global demand for biopolymers, with a particular focus on the rapidly increasing demand for sustainable products in Asia.

The joint venture is strategically formed, combining Braskem's extensive know-how in bio-based plastics with SCG Chemicals' strong position in the Asian market and expertise in polyethylene (PE) production. This synergy is expected to establish a robust business foundation for Braskem Siam Company Limited.

Roberto Bischoff, CEO of Braskem, expressed his company's dedication to expanding bio-based PE offerings to cater to the rising demand for sustainable solutions. He mentioned that Braskem's collaboration with SCG Chemicals aligns with their goal to produce 1 million tons of eco-friendly products by 2030, emphasizing the shift from fossil to renewable resources and aiming to reduce the industry's carbon footprint.

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Tanawong Areeratchakul, CEO and President of SCG Chemicals, outlined SCGC's objective to emphasize Green Innovation, particularly environmentally-friendly polymers. He reiterated the company's goal to achieve an annual production of 1 million tons of such polymers by 2030, adhering to ESG standards. Highlighting the importance of the joint venture with Braskem, he said the focus would be on producing bio-ethylene from sugarcane, utilizing top-tier technology from the Braskem-Lummus partnership. This move aligns with Thailand's Bio-Circular-Green Economy development strategy.

According to Procurement Resource, the Joint Venture between Braskem and SCG Chemicals is propitious to the significantly burgeoning demand for bio-based ethylene. Keeping the recent surge in the awareness and discernment of the need of the sustainable products to substantiate the environmental health, the plant is supposed to be crucial in keeping up with the blooming demand.