Noppadol: Joint venture signed

IRPC, the petrochemical subsidiary of state-owned PTT, has partnered with Japan Polypropylene Corporation (JPP) to set up an electric vehicle (EV) business in Thailand.

The company acquired 50% of Mytex Thailand's shares, allying with JPP to penetrate the polypropylene (PP) compound automotive market, with plans to increase its market share in Southeast Asia.

"The company signed the joint venture contract with JPP, a leading petrochemical company that owns an in-line compound technology, to acquire 50% of Mytex Thailand's shares," said Noppadol Pinsupa, president of IRPC. "Mytex Thailand makes and sells PP and PP compounds for automotive parts in Thailand and Southeast Asia."

The partnership with JPP will increase IRPC's specialty or in-line PP compound market share.

IRPC's PP compound production unit started operations in late 2017 with a capacity of 140,000 tonnes a year. The unit uses a technology owned by JPP.

"This collaboration will strengthen IRPC's core business, allow the company to enter the automotive market quicker and increase competitive capabilities," Mr Noppadol said. "This is a significant step for IRPC to increase its specialty portfolio in accordance with the company's strategy through PP compound development in response to the needs of the automotive industry, for both combustion engines and EVs."

The development will cover safety, product lifetimes and operational efficiency in order to respond to other industries besides automotive.

The move is part of IRPC's growth strategy of focusing on human-centric technology and responding to customers' needs by using modern technology and innovation to follow global trends.

"In addition, both JPP and Mytex Thailand are well recognised in the petrochemical business," Mr Noppadol said. "Their reputable and renowned technology is accepted by the world's major automotive companies.

"JPP and IRPC are applying for approval from authorities in relevant countries to comply with competition laws. Upon securing the necessary approvals, we will begin the joint operation in the second half of 2020. I'm confident this collaboration will increase competitiveness sustainably."