At a ceremony in Grenoble, France, on 22 December the future co-operation agreement between specialty chemicals company Perstorp and PTT Global Chemical was signed. The joint venture, dedicated to the manufacturing and sales of aromatic (TDI) and aliphatic (IPDI, HDI & derivates) isocyanates, includes the former Perstorp Business Group “Coating Additives” with its manufacturing sites at Pont-de-Claix in France and Freeport in the US. PTT Global Chemical (PTTGC) will hold 51% of the joint venture and Perstorp 49%.

“We believe in a promising future for polyurethanes. Perstorp’s expertise in manufacturing, R&D, sales and marketing of isocyanates, coupled with PTTGC’s position as a major Asian chemical player, gives the joint venture a unique opportunity to establish leading positions in the worldwide polyurethane market,” said Veerasak Kositpaisal, PTT Global Chemical’s CEO and Martin Lundin, Perstorp’s President and CEO.

The joint venture is planning a major investment to strengthen competitiveness, Research & Development,  and increase market offerings and includes both expanded capacity at the manufacturing plant in Pont-de-Claix, France, and new capacity in Asia. To begin with, this includes the investment in a new joint plant for HDI derivatives in Asia. As part of the investment scheme, Perstorp has also entered an agreement with the French government regarding the measures to be introduced that meet the French PPRT law (Plan de Prevention des risques Technologique), measures which are also supported by PTTGC.

Isocyanates are used as hardeners in coatings and raw materials in elastomers and foam products. TDI are key materials for foam, which is used for making mattresses, bedding, seating and packaging. HDI and its derivates find major market applications in the automotive sector (OEM & refinish), industrial maintenance, plastic & wood coatings, transportation, aerospace, coil & can coatings, leather finishing and adhesives.

PTT Global Chemical Public Company Limited is Thailand’s largest chemical producer and chemical flagship of PTT Group The company’s business value chain consists of upstream business with petrochemical capacity of 8.2 million tons per year and petroleum products capacity of 228,000 barrels per day. Downstream business includes polymers, EO-Based Performance, Green Chemicals, and High Volume Specialties. Details are available at www.pttgcgroup.com