February 23,
2006
Asahi Kasei Chemicals Corporation
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Partnership with PTT in petrochemical fields
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Asahi Kasei Chemicals Corporation (AKCC) and PTT Public Company Limited of Thailand
have reached basic agreement to explore the prospects for joint commercial projects in petrochemicals.
Studies for joint production of acrylonitrile (AN), methyl methacrylate (MMA),
and polymethyl methacrylate (PMMA) in Thailand (see below) have reached advanced stages,
with final conclusion expected shortly. Furthermore, the two companies are extending
the scope of study to other businesses and technologies in which synergies can be obtained
through a combination of AKCC's and PTT's respective strengths.
PTT, with core businesses in natural gas, oil, petrochemicals, and refining, is Thailand's largest private enterprise,
established in 2001 through the privatization of Thai state-owned energy and petroleum-related assets and operations.
A major natural gas producer developing rich natural gas fields both within Thailand and internationally
with an expanding pipeline network to serve the country's growing energy needs, PTT is expanding petroleum,
refining, and petrochemical operations with an emphasis on downstream segments.
PTT found AKCC's competitive petrochemical technologies and marketing capability to be an attractive
complement to its own petrochemical business in a time of increasingly global competition.
AKCC, facing the prospect of elevated petroleum and naphtha prices persisting for an extended period,
sought a partner with stable, low-cost access to petrochemical feedstocks,
and has advanced the development of technology to enable a transition from naphtha to gas as basic feedstock
for petrochemicals production.
At the same time, AKCC has considered a range of options for reinforcing its competitive position
in AN and MMA through the addition of an Asian production base to meet forecast demand growth in the region.
As the strengths and objectives of the two companies matched one another well,
it was agreed to advance studies for commercial collaboration in a number of petrochemical products.
AN:
AKCC's technology for AN production from propane gas instead of from propylene is
in the final stages of commercialization.
AKCC and PTT are studying the joint construction of a 200,000 ton/year propane-process
AN plant in Thailand with start-up targeted for year-end 2009.
Discussions are premised on AKCC providing a process technology license and marketing
the product with PTT supplying all necessary propane feedstock.
The capital participation of Marubeni Corporation (Tokyo, Japan; President: Nobuo Katsumata) is also planned.
Completion of this project would raise AKCC's global AN supply capacity to
approximately 1 million tons/year (including 270,000 tons/year at Korean subsidiary Tong Suh Petrochemical),
on par with that of present world leader Ineos Nitriles.
MMA and PMMA:
AKCC and PTT are studying the joint construction of a 70,000 ton/year MMA
plant in conjunction with the AN plant and with the same start-up target of year-end 2009.
Acetone supplied by the PTT Group is to be used at the AN plant to produce acetone cyanohydrin (ACH),
the key feedstock for MMA. Process technology is to be licensed by AKCC.
Completion of this project would complement AKCC's present MMA production in Japan with a base for supply
in the growing market of Southeast Asia, and raise supply capacity to 170,000 tons/year.
The prospects for joint construction of a 25,000 ton/year PMMA plant are also being discussed.
Other petrochemical derivatives:
Moving forward, AKCC and PTT will extend discussions related to the prospects for collaboration, including the establishment of joint-venture companies and other forms of commercial alliance, across a wide range of petrochemical products. In each case, individual propositions will be examined on the basis of the ability to obtain synergies in areas where the strengths of the two partners are complimentary and a combination would be mutually beneficial. It has also been agreed to study possibilities for cooperation in relation to research and development.
Corporate profile of PTT Plc.
Head office: 555 Vibhavadi Rangsit Rd., Chatuchak, Bangkok, Thailand
President: Prasert Bunsumpun
Establishment: October 2001
Business fields:
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Oil Business Group |
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Petroleum production, import, and export; sale of LPG, gasoline, and other refined products. |
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Gas Business Group |
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Natural gas production, distribution, and separation. |
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Petrochemical & Refining Business Group |
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Petroleum refining; production of ethylene, propylene, and other petrochemicals. |
Paid-up capital: 27,972 million baht (at the end of 2004)
Shareholder equity: 184,915 million baht (at the end of 2004)
Net sales: 644,673 million baht (in 2004)
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