Polyplex invests over $100 million to expand thin film production in the U.S.
BANGKOK, NNA— Thailand’s major integrated polyester (PET) film company, Polyplex (Thailand) PCL, will expand its production with a second plant in the United States to capitalise on the high domestic market demand for thin film products.
Polyplex (USA) LLC., the company’s wholly owned subsidiary will grow its BOPET (stretched polyester thin film) business with an investment of 3.22 billion baht ($102.80 million) to expand its operations in Alabama, according to the company’s filing to The Stock Exchange of Thailand on Sept. 29.
Polyplex, which produces PET film and integrated downstream products including metalized and silicone coatings, noted that the U.S has a large and growing domestic demand for the materials which are used in many applications, from consumer products to components used by industries.
However, America has been heavily dependent on imports. The Polyplex investment is set to “significantly enhance the overall cost competitiveness” as it supports the growth in local supply to reduce imports, the company said .
The second plant in Alabama is expected to produce 50,000 tons of BOPET (also known as biaxially-oriented polyethylene terephthalate) thin film yearly. Its construction is scheduled to begin in the first half of 2021 and production is expected to start in about two years from now.
In the second quarter of this year (April to June), the company's total film sales increased by 5 percent to 3.75 billion baht over the same period last year, the company stated. BOPET generated the lion's share of 72 percent.
Polyplex, which sells its products to 75 countries, has manufacturing facilities in five countries including Thailand, U.S., Turkey and Indonesia.