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THAILAND’SBIOPLASTICSINDUSTRYThailand Board of Investmentwww.boi.go.th

INDUSTRY OVERVIEWWorldwide consumption of bioplasticshas increased more than 600% in thepast decades1 and expected to reach40% market share of global plasticsmarket in 2030.2 This remarkable growthis resulted from the global trend ofenvironmental awareness. That is why66% of global respondents are willingto pay more for bio product.3Governments around the world alsoramp up with this trend. Bangladeshis the first country in the world to banthe lightweight plastic bags in 2002.4European Union also plans to ban plasticbags across the EU by 2020. This is abright future of bioplastics investmentthat has been increased around theworld in the past few years as well as inThailand. The country’s largest energycompany PTT just invested nearly 2billion on the bioplastics and bio-basedproduction in 2016.5 These giganticmovements have tremendous effectto world in order to become bio-basedcommunity.With more sophisticated materials, applications, and products emerging, the globalproduction capacity of bioplastics is forecasted to grow by 50 percent, from 4.2million tons in 2016 to roughly 6.1 million tons in 2021.Global Production Capacities of Bioplastics1[In ‘000 018F2019F5,9546,1112020F2021FAsia will continue as a major production hub. In 2021, it is expected that morethan 45 percent of bioplastics will be produced in Asia, and a quarter of the globalproduction capacity will be based in Europe.Global Production of Bioplastics in 2016 (By region)2[In %]1Source:Ceresana Consulting; Worldwide consumptionof biodegradable plastics from 2000-20082Energy and Gold Ltd.3Green Peace4Marrickville Council5Deal Street Asia27.123.443.4Total: 4.16 million tons5.90.2Source: 1, 2 European Bioplastics,Nova Institute (2016)

Agricultural FeedstockTHAILAND: THE HUBOF BIOPLASTICSAs a land of agriculture, Thailand enjoyscompetitive advantages in the bioplasticsindustry. The richness of biomass,materials supply, research drivenresources, strong downstream industrydemand, and supporting governmentpolicy have created significant bioplasticbusiness opportunities in the country.Thailand is also ASEAN’s secondlargest exporter of plastic products afterSingapore, and ranked 14th in the worldin 2016.1Thailand is one of the top agriculturalcountries in the world with main cropssuch as rice, rubber, sugar cane,cassava, palm oil etc. The exportvalue of the agricultural raw material isapproximately USD 20 billion.1Moreover, Thailand has the necessaryworkforce and supporting organizationsto encourage a vibrant agriculturalproducts. Currently, Thailand has 1,440plant breeders and seed technologist,and over 143 industry experts andresearchers in agriculture industry.2Sugarcane & Cassava Domestic Production3[In Million Tons]Thailand’s Bioplastics Value Chain6.29%*Agricultural FeedstockBiomonomersThailand is the world’s largestcassava exporter (60% marketshare), the world’s second largestsugar exporter (51 sugar factories).1Thailand is the world’s major lacticacid producer with capacity of330,000 tons/year.2207156CassavaSugarcane2010Bioplastics ConvertersThailand has more than 3,000 localplastics converters which are readyto develop their machines or adjusttheir production processes to servethe bioplastics market.Source:SCB Economic Intelligence Center2Petroleum Institute of Thailand3Plastics Institute of ThailandNote:* BDO Bio-base 1,4-Butanediol; BSA Bio Succinic Acid;PBS Polybutylene Succinate; PLA Polylactic Acid;1178111BiopolymersThailand has the first PBS* plantin the world with capacity of20,000 tons/year. 3 In 2018, thesecond largest PLA* plant will startoperations in Thailand.267385Source:1Ministry of Commerce2The National Center for Genetic Engineering and Biotechnology (BIOTEC)3Office of Agricultural EconomicsNote:Exchange rate (BOT, May 1, 2017):USD 1 THB 34.702016

Thailand is a top exporter of rawmaterials used to produce bioplasticsgoods. Therefore, producing bioplasticproducts in Thailand will provide strongadvantages in reducing the conversioncost and ensure supply continuity.CASSAVASUGARCANEExport1Quantity 10 Million tons/YearValue 2.3 Million1According to National InnovationAgency (NIA) research, usingcassava starch as a feedstock forbioplastic products is 30% cheaperthan using corn starch.Export2Quantity 6 Million tons/YearValue 2.3 MillionBioplastic production processesconsumes only 54,000 tons ofsugar per year which is less than1% of the total export. Moreover, theprocessing of sugarcane to producebioplastics creates almost 10-timesvalue added benefits.3BiomonomersThe number of biomonomer productionplants in Thailand increases in thepast few years resulted from a strongsupport and attractive incentives fromthe government. Thailand presents aunique combination of all the attributesnecessary to be a successful site forbiochemical and bioplastics productionwhich together makes Thailand isthe most attractive locations for thebiomonomer hub.Proposed Biochemical: Production Capacity in 20161Cassava PelletsChip Native StarchSago Modified StarchRaw SugarWhite Sugar6x - 15xValue AddedEthanolBiogasBiomassLactic Acid1,058 millionliter/years41,523 millionliter/years42,321 MW4330,000tons/year4Citric ,000tons/yearBSA**34,000tons/yearLactic Acid330,000tons/yearExamples of Biomonomer producers in ThailandSource:Office of Agricultural Economics3Thailand Bioplastics Industry Association (TBIA)4Petroleum Institute of Thailand and BIOTECNote:* PBS Polybutylene SuccinateExchange rate (BOT, May 1, 2017):USD 1 THB 34.701, 2Source:Petroleum Institute of ThailandNote: * BDO Bio-base 1,4-Butanediol;**BSA Bio Succinic Acid1

Bioplastics ConvertersBiopolymersThailand’s Biopolymer Industry Ranking11stThe first PBS bioplastic plant in the world2ndPLA Producer in the world*The Global Leading Biopolymer Manufacturers in ThailandTotal and Corbion are joining forces to produce andmarket polylactic (PLA) polymers. The two partnersplan to modify the existing plant in Rayong to build aworld-class PLA polymerization plant with a capacityof 75,000 tons per year. This development plant willbe operating in 2018. Total-Corbion investment isapproximately USD 100 million.PTTMCC is a strategic joint venture between PTTPublic Company Limited (PTT) and Mitsubishi ChemicalCorporation (MCC). The joint venture produces and sellsPolybutylene Succinate (PBS) with a total productioncapacity of 20,000 tons per year. The plant startedcommercial operations in 2017.Source:1Plastics Institute of ThailandNote:* The plant is expected to commercialoperation in 2018With world-class standards, Thailandis ASEAN’s second largest exporterof plastic products after Singapore,and ranked 14th in the world in 2016.1With over 3,000 plastics converters,Thailand is also very well-establishedin the downstream industries with thecapability to produce a wide rangeof products, as those converters canadjust production processes to makegoods from bio-plastics, for example,bioplastics bag, biodegradable box, etc.Thailand is the best production hubwith world-class quality product andstandard serving domestic, regionaland global demands. The country’stop destination of bioplastics productsexport are including the EuropeanUnion, the United States, and Japan.Examples of Bioplastics Converters in ThailandM.D. SynergyWandee PanichIndustry1Source:International Trade Center

WHY INVEST INTHAILAND?Security of SupplyThailand’s rich natural resources havesolidified the country’s reputation as theleading global supplier of agricultureproducts such as cassava, sugarcane andpalm oil. These commodities, as well astheir waste byproducts, can be utilizedas biomass which is a critical source forbioplastic products.1stCassava Products Exporter in the world2ndSugar Exporter in the worldSkilled and Ready WorkforceThailand is equipped with qualityresearchers and experts covering everyprocess of bioplastics production. Morethan 1,500 biotechnology experts andresearchers work actively on the R&Din the industrial sector.1 With more than3,000 plastic converters, Thailand hasover 360,000 workers to serve thebioplastics industry.2Strategic LocationSituated at the best location in Asia,Thailand has the perfect locationconnected to 3 billion people in SoutheastAsia, China and India with world-classinfrastructure provided. SuvarnabhumiAirport will accommodate 60 millionspassengers while Laem Cha-bang deepsea port will reach 18 TEUs capacityannually when finish their third phaseexpansion.Strong Government SupportSource:Ministry of CommerceThailand is making a tremendous effortto be the “Bio Hub’” of Southeast Asia.To achieve the plan The government’sAction Plan for Technology Solutionsfor Climate Change: the Adaptationof the Agricultural Sector (2015-2024)which is the first important step to helpsustain country’s agricultural industryand lift up the quality of raw materialas well as farmer’s life quality whichwill continuously impact the wholeagricultural and bioplastics value chain,The first investment phase puts 1.44billion in Rayong area which later willexpand to Khon Kaen.1Source:Office of Higher Education Commission2Plastics Institute of ThailandNote:* Compound Annual Growth Rate(2011-2015)

Associations and InstitutionsSUPPORTINGFACILITIESTo provide continuous support inimproving the investment environmentfor bioplastics investors, thegovernment, in collaboration witheducational institutions, researchcenters, and the private sector isoffering various resources for researchand development, human resourcetraining as well as dedicated bioplasticsrelated faculties in over 20 leadingacademic institutions.Research CentersCenter of Excellence on Petrochemical andMaterials TechnologyChulalongkorn UniversityBioplastics Research UnitPrince of Songkla UniversityCassava and Starch Technology Research LaboratoryKasetsart UniversityDepartment of BiotechnologyFaculty of Science, Mahidol UniversityFaculty of ScienceBurapha UniversityPlastics Institute ofThailandPromotes and enhances the Thai plasticsindustry’s competencies through R&Dand product testing services.National Science andTechnology DevelopmentAgencySupports R&D in 5 target areas,including agriculture and food, energyand environment, health and medicine,bioresources and community, andmanufacturing and service industriesNational Metal andMaterials TechnologyCenter (MTEC)Creates and enhances capabilitiesin materials technology of bothgovernmental and private sectorsthrough R&D.Thai Bioplastics IndustryAssociationAssists in the development of theThai Bioplastics industry to reachinternational standards and promotesnetworking within the Bioplasticscommunity.National Innovation AgencySupports R&D of innovative productsand embeds the innovative strategicdirection of firms.Biodiversity-BasedEconomy DevelopmentOffice (Public Organization):BEDOSupports and promotes the bio-basedeconomy and enhances value-addedbio product of the country.National Center forGenetic Engineering andBiotechnologySupports R&D, policy research, andinternational relations in agricultural,biomedical and environmental sciences.Thailand Institute ofScientific and TechnologicalResearchPromotes and enhances innovationsin science and technology R&Dcapabilities for commercialization andsocial benefits.