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Business >> Monday August 18, 2008
 
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Regional bioplastics role pursued

Raw material supply is Thailand's strength

NAREERAT WIRIYAPONG

Its natural resources could enable Thailand to attract overseas investment to become a regional bioplastics hub, says the Thai Bioplastic Industry Association.

In the Asia-Pacific region, Thailand's bioplastics industry is currently behind only Japan and China _ ranked first and second respectively _ said association president Somsak Borrisuttanakul.

''Thailand has plenty of raw material supplies, especially cassava,'' said Mr Somsak. ''With an annual production of 20 million tonnes, Thailand is the world's top exporter of cassava.''

In addition, Thailand has a large lactic acid (LA) manufacturing base. Made from cassava and sugarcane, LA can be processed to become an ingredient in bioplastics production.

In April Netherlands-based Purac started operations in Thailand at its largest LA manufacturing facility in the world. The plant can currently produce 50,000 tonnes of LA a year and plans to double its output, said Mr Somsak.

He added that Purac has also been working with potential strategic partners to develop small-scale production plants for polylactic acid (PLA), which Thai compounders must currently import.

''The only missing piece in the jigsaw for Thailand's bioplastics industry is local manufacturing of PLA, which requires a substantial investment of billions of baht for an economy-of-scale production of at least 30,000 tonnes a year,'' he said.

But Mr Somsak said that to develop an integrated industry, the government should stimulate demand by raising awareness of bioplastics' ability to compete on price with conventional plastic.

Biodegradable plastics now account for only 30% of annual packaging consumption of 500,000 tonnes. However, while two to four times more expensive than conventional plastics, bioplastics become competitive when waste management costs are taken into account.

With the goal of making Thailand a regional bioplastics hub, the government has initiated a 1.8-billion-baht five-year action plan. It aims to increase cassava yield from three to 10 kilogrammes per rai _ in part, to ensure production meets demand for human consumption as well as for industrial use.

At the same time, bioplastics exports have begun to markets such as the European Union, the United States and Japan. The EU has an especially promising outlook as it plans for 100% bioplastics use from 2010 onward, said Mr Somsak.


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