Oil and Gas

Cargill and PTTGC to build $600 mln biopolymer plant in Thailand

BANGKOK, Aug 10 (Reuters) - U.S. agribusiness giant Cargill Inc and Thailand’s PTT Global Chemical Pcl announced on Tuesday they will build a biopolymer production facility at a cost of more than $600 million in Thailand.

The plant will be built through their joint venture, NatureWorks, and will help meet increasing demand for sustainable materials, PTTGC said in a statement.

The manufacturing complex will use about 110,000 tonnes of sugar annually from Thai farmers as a raw material and have an annual biopolymer capacity of 75,000 tonnes. It is due to begin operations in 2024.

Its products can be used to make hygiene masks, wiping cloths and food packaging.

The investment comes less than a month after PTTGC announced a $4.75 billion acquisition of German coating resins maker Allnex. (Reporting by Chayut Setboonsarn Editing by Ed Davies)