Press Release
Indorama Ventures and CSM in Alliance Discussion for PLA
Bangkok - 23 February 2011 - Bangkok, Thailand/ Diemen, the Netherlands, February 18, 2011
Indorama Ventures PLC (IVL) and CSM subsidiary Purac are in discussions to set up a Polylactic acid (PLA) manufacturing facility in Thailand, with an initial capacity of 10,000 tons per annum being raised to 100,000 tons per annum after developing application specific grades. This product would be based on high purity (GMO free) Lactides produced by Purac. The Lactide monomers for the production of PLA will be sourced from Purac's Lactides production plant in Rayong, Thailand as well as from other Purac sites.
This PLA is GMO-free, natural, and a biodegradable material that is a sustainable alternative to oil-based polymers. PLA has a lower carbon footprint than most other polymers and can be marketed as a green alternative for packaging materials, fibres and non-woven textiles. The products would be marketed by IVL through its existing global marketing and sales network.
The product made by the combination of unique Lactide raw materials and unique PLA production process is able to deliver a quality that is stable at much higher temperature ranges than other bioplastics. The properties of this polymer allow this to be used for many textile and packaging applications which have not been possible with other bio-based products so far and will thus open a large latent demand. PLA has many uses, like upholstery, disposable garments, awnings, food packaging, and disposable tableware.
"This collaboration with IVL is an important step in the market development for PLA because in addition to being the largest polyester producer in the world, IVL is a leading manufacturer of raw materials for textiles and packaging" says Gerard Hoetmer, Chief Executive Officer of CSM. "This partnership will widen the scope of such biodegradable applications and accelerate our market development of PLA. It will be another milestone on the way towards providing an important role for bioplastics in the fast-growing packaging and materials space."
"We strongly believe in creating superior value for our customers by investing in sustainable products and technology." says Aloke Lohia, Group CEO of Indorama Ventures. "Purac gives us an opportunity to enter the space for a new generation of highly sustainable, biodegradable, low carbon footprint materials."
About Purac
Purac is a leading company in lactic acid based bioplastics and the worldwide market leader in lactic acid, lactic acid derivatives and Lactides. Purac develops the bioplastics market through innovative solutions and partnerships with a select group of companies in the plastics industry. Purac has 80 years of experience in the development, manufacturing and marketing of these products in a broad range of industries. Purac operates production plants in the USA, the Netherlands, Spain, Brazil and Thailand and markets its products through a worldwide network of sales offices and distributors. Purac is headquartered in The Netherlands and is a part of CSM.
About CSM
CSM is the largest supplier of bakery products worldwide and is global market leader in lactic acid and lactic acid derivatives. CSM produces and distributes an extensive range of bakery products and ingredients for artisan and industrial bakeries and for in-store as well as out-of-home markets. It also produces a variety of lactic acid applications for the food, chemical and pharmaceutical industries. CSM operates in business-to-business markets throughout Europe, North America, South America, and Asia, generates annual sales of € 3 billion and has a workforce of around 10,000 employees in 25 countries. CSM is listed on NYSE Euronext.
Indorama Ventures PLC (IVL) and CSM subsidiary Purac are in discussions to set up a Polylactic acid (PLA) manufacturing facility in Thailand, with an initial capacity of 10,000 tons per annum being raised to 100,000 tons per annum after developing application specific grades. This product would be based on high purity (GMO free) Lactides produced by Purac. The Lactide monomers for the production of PLA will be sourced from Purac's Lactides production plant in Rayong, Thailand as well as from other Purac sites.
This PLA is GMO-free, natural, and a biodegradable material that is a sustainable alternative to oil-based polymers. PLA has a lower carbon footprint than most other polymers and can be marketed as a green alternative for packaging materials, fibres and non-woven textiles. The products would be marketed by IVL through its existing global marketing and sales network.
The product made by the combination of unique Lactide raw materials and unique PLA production process is able to deliver a quality that is stable at much higher temperature ranges than other bioplastics. The properties of this polymer allow this to be used for many textile and packaging applications which have not been possible with other bio-based products so far and will thus open a large latent demand. PLA has many uses, like upholstery, disposable garments, awnings, food packaging, and disposable tableware.
"This collaboration with IVL is an important step in the market development for PLA because in addition to being the largest polyester producer in the world, IVL is a leading manufacturer of raw materials for textiles and packaging" says Gerard Hoetmer, Chief Executive Officer of CSM. "This partnership will widen the scope of such biodegradable applications and accelerate our market development of PLA. It will be another milestone on the way towards providing an important role for bioplastics in the fast-growing packaging and materials space."
"We strongly believe in creating superior value for our customers by investing in sustainable products and technology." says Aloke Lohia, Group CEO of Indorama Ventures. "Purac gives us an opportunity to enter the space for a new generation of highly sustainable, biodegradable, low carbon footprint materials."
About Purac
Purac is a leading company in lactic acid based bioplastics and the worldwide market leader in lactic acid, lactic acid derivatives and Lactides. Purac develops the bioplastics market through innovative solutions and partnerships with a select group of companies in the plastics industry. Purac has 80 years of experience in the development, manufacturing and marketing of these products in a broad range of industries. Purac operates production plants in the USA, the Netherlands, Spain, Brazil and Thailand and markets its products through a worldwide network of sales offices and distributors. Purac is headquartered in The Netherlands and is a part of CSM.
About CSM
CSM is the largest supplier of bakery products worldwide and is global market leader in lactic acid and lactic acid derivatives. CSM produces and distributes an extensive range of bakery products and ingredients for artisan and industrial bakeries and for in-store as well as out-of-home markets. It also produces a variety of lactic acid applications for the food, chemical and pharmaceutical industries. CSM operates in business-to-business markets throughout Europe, North America, South America, and Asia, generates annual sales of € 3 billion and has a workforce of around 10,000 employees in 25 countries. CSM is listed on NYSE Euronext.