SCGC aims to become a leading integrated chemical player, with its main business being producing plastic resins or polymers that can be molded into consumer goods. In addition, it enters into other related businesses, including clean energy solutions and industrial innovations, with a business strategy aimed at upgrading the High Value-Added Products & Services (HVA) alongside offering products that meet megatrends, which is anticipated to expand with consumer usage in five key industries: infrastructure, consumable packaging, health and well-being, energy solutions, and automotive.
Tanawong Areeratchakul, CEO and President of SCG Chemicals or SCGC, said, "Both SCGC and Denka lay a focus on doing business alongside environmental stewardship. Establishing this joint venture is a stabilizing factor in SCGC's continued growth. The joint venture with Denka underlines SCGC's corporate objectives, which include responding to megatrends and promoting the use of electric vehicles that are more environmentally friendly. It also exhibits the ability to be a successful strategic partner and receives constant recognition from global partners."
Toshio Imai, President and CEO of Denka Company Limited, said, "Denka placed a significant emphasis on operating healthcare business, energy and environmental businesses, particularly in the areas of EV and 5G, which are among the company's primary strategies, while SCGC operates chemical business in Thailand with the aim of becoming a leading integrated chemical player in ASEAN. This joint venture combines the excellent raw material sourcing and petrochemical plant management capabilities of SCGC with those of Denka, a leading global manufacturer of acetylene black with unique technology, extensive distribution channels, and a strong network. Importantly, this joint venture will help expand the electric vehicle battery production industry, which is expected to increase in the future."
Denka is a company with over 100 years of history in Japan. Denka currently manufactures acetylene black at three plants in Japan and abroad. The advantage of Denka's acetylene black is that it is a carbon black produced through the continuous thermal decomposition of acetylene gas. The carbon black produced by Denka's proprietary degradation and thermal synthesis technology is highly pure and has excellent electrical conductivity. It can be utilized in lithium-ion batteries, electric vehicles, and high-voltage transmission cables.
Following the formation of a joint venture, the production facilities of Denka and SCGC will be launched concurrently. It has initially set an annual output target of around 11,000 tonnes, with production anticipated to begin in early 2025. Details of this investment is expected in early 2023, once the final investment decision (FID) has been made.
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Source: SCG