Japan Polypropylene to tie up with Thai petro firm in JV
BANGKOK, NNA - The Thai subsidiary of Japanese resin maker Japan Polypropylene Corp. will enter into a joint venture with Thai petrochemical firm IRPC Public Co. to beef up its automotive parts production capability in Southeast Asia.
The Tokyo-based company under Mitsubishi Chemical Corp. will sell a 50 percent stake in Mytex Polymers (Thailand) Co., its wholly owned subsidiary that is capitalized at 120 million baht ($3.8 million), to IRPC, a subsidiary of Thailand's state-backed oil firm PTT Public Co., according to a Japan Polypropylene statement released on Wednesday.
Mytex Polymers (Thailand) produces polypropylene compounds for automotive parts in the Amata City Chonburi Industrial Estate in the province of Chonburi, southeast of Bangkok.
It plans to begin operation as a joint venture, without changing name, later in 2020, pending approval by authorities.
The joint venture will ship products to automakers in Thailand and other Southeast Asian countries with an annual output capacity of 15,000 tons, a Japan Polypropylene spokesman told NNA on Thursday.
He said the new partnership was created after studying further collaboration with IRPC, to which the Japanese company currently licenses its products, to strengthen its business in Southeast Asia. (NNA/Kyodo)