Mitsubishi Corp. to make further investment into PET production in Thailand

09, Jan. 2020

Image by Willfried Wende from Pixabay
Image by Willfried Wende from Pixabay

TAIPEI, NNA - Mitsubishi Corp. will make a further investment into Thai production of polyethylene terephthalate, PET, used to make plastic beverage bottles to draw demand for the recyclable material amid growing global environmental awareness.

The Japanese trading house said on Wednesday that it would accept a third-party allotment of shares to be issued in March by Thai Shinkong Industry Corp. to raise its stake in the local PET maker to 34 percent from the current 3.85 percent. The transaction value was not disclosed.

Thai Shinkong Industry is currently owned 90.38 percent by Taiwan’s Shinkong Synthetic Fibers Corp., a major producer of polyester fiber and PET.

Mitsubishi’s investment will allow the Japanese trading house and its Taiwanese partner to build a new plant in Thailand with an annual production capacity of 200,000 tons of PET. The total investment in the facility values at about 2.4 billion baht ($79.1 million), according to the Taiwanese maker.

The new plant is scheduled to be completed in 2021. Combined with the current capacity at the existing plant adjacent to the projected new facility, total production capacity will be 375,000 tons a year.

Mitsubishi will dispatch a management executive to the new plant.

Takeshi Hagiwara (L), Mitsubishi’s executive vice president, and Eric Wu, Shinkong Synthetic Fibers’ chairman, reached an agreement on Jan. 7 on the third-party allotment.(Photo courtesy of Shinkong Synthetic Fibers Corp.)
Takeshi Hagiwara (L), Mitsubishi’s executive vice president, and Eric Wu, Shinkong Synthetic Fibers’ chairman, reached an agreement on Jan. 7 on the third-party allotment.(Photo courtesy of Shinkong Synthetic Fibers Corp.)