Thailand’s ‘plastic’ ambition: Industry Ministry seeks foreign investment to mould bioplastics hub status by 2027

Photo courtesy of iStock

The Industry Ministry of Thailand is being urged to devise innovative strategies in order to attract foreign investment for the nation’s burgeoning bioplastics sector. The ultimate aim is to establish Thailand as a bio hub within the ASEAN region by 2027.

Viboon Pungprasert, president of the Thai Bioplastics Industry Association (TBIA), has called upon the new government to implement measures that will stimulate the demand for bioplastics within the country.

“Currently around 90% of bioplastic products are exported, with only 10% of them sold in the domestic market.”

Viboon further highlighted the potential for increasing production capacity, given the government’s support for more investment. The TBIA is optimistic about attracting companies from the US and Europe, given the increasing interest of manufacturers in environment-friendly products. Such products align with the global campaign for a net-zero target, a balance between carbon dioxide emissions and absorption.

Thailand, rich in raw materials such as sugar cane and cassava, provides an ideal environment for bioplastic manufacturing. This in turn adds value to agricultural products and enables farmers to generate higher revenue.

Thailand already ranks among the top five largest bioplastic manufacturing countries in the world. Two European companies have established factories in the eastern province of Rayong, boasting an annual capacity of 750,000 tonnes and 250,000 tonnes respectively.

Earlier this year, SCG Chemicals Plc, a subsidiary of Thailand’s largest cement maker and industrial conglomerate SCG, announced a collaboration with Brazil-based Braskem, the world’s largest biopolymer producer.

The partnership aims to construct a new plant in Thailand for the production of bio-based polyethene, a type of eco-friendly plastic. This move is part of an initiative to reduce carbon dioxide emissions. This new factory, set to produce 200,000 tonnes a year, will also be located in Rayong.

A similar initiative has been undertaken by PTT Global Chemical Plc and US-based Cargill Inc., who have formed a joint venture, Natureworks, with plans to build a biopolymer factory in Nakhon Sawan.

The TBIA believes that increasing the use of bioplastic products will also aid Thailand in better managing its plastic waste, including single-use plastic bags.

Follow more of The Thaiger’s latest stories on our new Facebook page HERE.

Business News

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.