BANGKOK (Oct. 22, 1:40 p.m. ET) — Japan's Mitsui Chemicals Tohcello Inc. and Thailand's SCG Chemicals Co. Ltd. are setting up a joint venture in Thailand to make linear low density polyethylene sealant film.
The facility will open in early 2014 in Rayong, and will have capacity for 15,000 metric tons per year of Mitsui's T.U.X. brand film, a high-strength cast film designed to improve resistance to tearing and leakage.
The Tokyo-based company said rising demand for better food packaging in Southeast Asia prompted the 1.45 billion yen (US$18.2 million) investment.
The venture will be 55 percent owned by Mitsui and 45 percent by Bangkok-based SCG, which is one of Thailand's largest resin producers and is unit of Siam Cement plc. The two companies have other joint ventures.
Speaking at the Flexpo Bangkok conference Sept. 17-19 in Thailand, Mitsui officials said it is the company's first investment for T.U.X. film outside of Japan, and follows a decision last year to strengthen production globally.
The investment will give Mitsui Tohcello 65,000 metric tons of T.U.X. capacity worldwide. Mitsui Tohcello is a subsidiary of Mitsui Chemicals Inc.