Total and Corbion Entered a JV For Bioplastics

Thailand: Total S.A., one of the leading oil and gas company, has joined hands with Corbion NV, a global market leader in lactic acid & derivatives to form a 50/50 joint venture to produce bioplastic polylactic (PLA) polymers. The two companies would together lead the foundation of a PLA polymerization plant, with an annual production capacity of 75 thousand metric tons. The strategic location of production plant in Thailand would enable the companies to meet the demand for lactic acid, a precursor for producing the PLA and lactide, from the existing lactide (PLA monomer) production unit of Corbion in the region. The new Netherland based Total-Corbion JV Company is expected to launch operations by the first quarter of 2017, post necessary regulatory approvals. This alliance would allow the companies to strengthen and expand their presence in the field of biofuels and bioplastics, in addition to traditional oil & gas products.

TechSci Research depicts that Bioplastic PLA is a rapidly emerging polymer market segment, which is expected to grow at an average annual growth rate of about 10 to 15% through 2025 and this joint venture between the two European companies would lead to stronger market presence of Total S.A. and Corbion NV in the sector of bioplastics.

According to a recent report published by TechSci Research, “Europe Biodegradable Plastics Market Forecast & Opportunities, 2019”, the biodegradable plastics market in Europe is forecast to witness a robust CAGR of around 12% during 2014-19. Growth in the market is being supported by various factors such as increasing environmental awareness among consumers, strict implementation of environment friendly laws, and growing R&D investments in the bioplastics sector by both public and private sectors. The European Union’s decision to reduce overall consumption of thin plastic bags in the region by about 80% through 2019, as compared to 2010 consumption levels, is expected to create huge growth opportunities for biodegradable plastics manufacturers over the next five years. Reduction in the usage of conventional plastic bags is expected to directly boost the consumption of biodegradable plastic bags in malls, retail outlets and loose packaging applications.