VNT plans new plant worth B8bn

       The SET-listed vinyl and chlor-alkali producer Vinythai Plc (VNT) will invest 8 billion baht to build a epichlorohydrin plant in Rayong following its acquisition of Solvay Biochemical Thailand Co (SBT).
       The company's board has approved the buyout of SBT, the Thai unit of the Belgium-based Solvay group, in a deal worth 360 million baht, said Varaiporn Piphitpattanaprapt, vice-president for finance and accounting.
       The acquisition would strengthen Vinythai's position in the business of environmentally friendly chemical compounds, she said.
       The epichlorohydrin project was formerly planned by SBT but little work had been done. Vinythai will take over the project and build the new plant at its existing site. The 8 billion baht would cover production of epichlorohydrin and expansion of Vinylthai's hydrogen chloride and caustic soda capacity to ensure sufficient supplies of raw materials to the epichlorohydrin plant.
       The main feedstock for epichlorohydrin production will be glycerin derived from the production of biofuels such as palm oil and other vegetable oils.
       Ms Varaiporn said the new plant was scheduled to be operational in the first quarter of 2012, with an annual production capacity of 100,000 tonnes.
       Demand is growing rapidly in AsiaPacific for epichlorohydrin, an essential feedstock for epoxy resins used in such applications as corrosion protection coatings, as well as the electronics, automotive, aerospace and power-generating windmill industries.
       Vinythai views that the new project based on environmentally sustainable technology will raise its competitive advantage and enable the company to become a key player in the Asia-Pacific region in Epichlorohydrin business.
       "The project will also diversify Vinythai's product range and add significant value to the company," she noted.
       The investment is subject to approval from relevant governmental authorities and shareholders.
       Solvay Chemicals and Plastics Holding B.V. is among the major shareholders of Vinythai with ownership of 49.99%, along with PTT Chemical Plc (24.98%), and Charoen Pokphand Group (11.87%).
       VNT shares closed yesterday on the SET at 6.80 baht, up 10 satang.