By Liz White, UTI editor
Bangkok -- Thai refinery and petrochemicals group IRPC Public Co. Ltd plans to buy a 25 percent stake in UBE Chemicals (Asia) Public Co. Ltd (UCHA). The deal will cost IRPC about Baht 5300 million ($167 million), for shares in both UCHA and its owner Japan's UBE Industries Ltd.
UBE says UCHA is a nylon and caprolactam manufacturer, formed in February 2010 through the merger of Thai Caprolactam Public Co. Ltd UBE Nylon (Thailand) Ltd, both of which began operating in 1997.
The company's plants are next to the IRPC-owned petrochemical complex, and they obtain raw materials as well as utilities from the complex, as well as accessing services such as port facilities and storage tanks at the complex.
UBE says HA plays an important role in the caprolactam chain business of the UBE Industries Group, capitalising on its highly competitive position and close proximity to growing markets in Southeast Asia and China.
UBE's statement said for PTT, the collaboration is an opportunity to strengthen its chain of products and services by expanding into the manufacturing of downstream products, "building on PTT's rich access to chemical raw materials."
For UBE Industries, the deal provides secure reliable supplies of raw materials and the chance to further expand its business in Thailand, as part of its global operations for the manufacturing and marketing of chemical products.
UCHA is UBE Industries' largest manufacturing facility outside Japan.
In urethanes. the UBE Chemicals group globally has a range of raw materials for coatings, adhesives, and resins including diols for urethanes such as polycarbonatediol (PCD), 1,6-hexanediol, 1,5-pentanediol, and polyester polyols.
PTT GC, part of IRPC, is in the final stages of purchasing a controlling stake in the isocyanates business currently owned by Sweden's Perstorp group.