Thaioil Group and Mitsui & CO.,LTD announce the business collaboration aiming to establish the only first and fully integrated LAB plant in Thailand and in Southeast Asia
- Establish Joint Venture Company under the name LABIX Company Limited with the latest technology from UOP - currently considered the most advanced and efficient process in the world for LAB production
- Investment with the total cost of 12,000 million Baht to establish LAB plant in Thailand, helping enhance Thailand economic growth.
- Strengthen Thailand economic and competitiveness by substituting LAB import amount of 3,500 – 4,000 million Baht per year while creating the country’s revenue at least 6,000 million Baht per annum
Thaioil Group is a leader of fully integrated refinery complex, recognized as one of the most efficient refining and petrochemical companies in the Asia Pacific. Thaioil Group via Thai Paraxylene Company Limited (TPX) - a wholly-owned subsidiary of The Group in tandem with Mitsui & CO.,LTD (Mitsui) - the world’s top notch trading Japan-based company, have established the first and only fully integrated LAB project in Thailand and Southeast Asia. Thaioil Group via TPX and Mitsui have set up the Joint Venture Company under the name of LABIX Company Limited with investment cost of 12,000 million baht. LABIX Company Limited is a LAB (Linear Alkyl Benzene) manufacturer, using the latest technology from UOP. LAB is a key raw material for fabric and homecare manufacturing. Under business collaboration between Thailand and Japan, the company creates more jobs and enhance economic growth by substituting LAB import amount of 3,500 – 4,000 million Baht per year. Generating additional income at least 6,000 million Baht to Thailand, LABIX can enhance Thailand’s competitiveness to achieve a leading position when entering into the ASEAN Economic Community (AEC).
Mr.Veerasak Kositpaisal, Chief Executive Officer and President, Thai Oil Public Company Limited said “Thaioil Group aims to be a leading fully integrated refinery and petrochemical complex in Asia Pacific, with the vision of sustainable growth and development. To achieve our goal, Thaioil Group by TPX – one of the Thaioil Group’s wholly owned Petrochemical manufacturing subsidiary, in connection with Mitsui & CO.,LTD - the leading LAB trader in the region, to form LABIX Company Limited. As not only the first LAB producer in the country, LABIX also the first fully integrated LAB plant in Southeast Asia. Additionally, the project will help substitute LAB import, generate country revenue at least 6,000 million Baht, create more jobs and improve community life’s quality.”
“Thaioil Group has explored how to develop a value-added product from Benzene, discovering that LAB is the high value Benzene derivative that has promising business potential and perfectly fit with the Group since we can upgrade both Kerosene and Benzene into higher value product. LAB is a surfactant product categorized in Downstream Fine Chemical Product and a major ingredient in fabric and homecare business e.g. detergent and dish washing liquid. This LAB plant facilities - not only production plant but also other infrastructures, will be fully integrated with Thaioil Group to maximize the synergy value for most efficient operation. We utilize the latest and the most advanced UOP technology for our world-class LAB production to ensure its higher efficiency, safe production and environmentally friendly, helping strengthen our competitiveness in business. With a strategic location of LAB plant, LABIX is a hub to distribute LAB product to both domestic market and export effectively to reduce the deficit for Southeast Asia market.” Mr.Veerasak mentioned.
Mr.Kazuya Okamura, Managing Officer, Chief Operating Officer Basic Chemicals Business Unit said, “Mitsui has a long history spanning over 40 years handling LAB. Throughout that time, we have managed to build firm relationships with our customers on the basis of trust. There is no other company like us that has marketed LAB in this sort of front-line capacity for such an extended time. Today we are maintaining over a 40% share of the Thai domestic market. With knowledge, experience, human resources and business partner assets, we firmly apply ourselves toward building the corporate value of LABIX, this latest joint venture with Thaioil. We recognize that we are expected to contribute in the area of sales and marketing, in regard to our participation in the LABIX project. Though we must refrain from mentioning the names of specific buyers today, we can say that our main customers will be detergent manufacturers in Thailand and other Southeast Asia countries such as Vietnam, the Philippines and Malaysia as well as Myanmar in the near future”.
“LABIX is the first plant to produce raw materials for detergent that will be built in Thailand. Accordingly, it is our great joy and honour to be able to invest and participate in this project together with Thaioil. With raw material supplies coming from a refinery located on the same site, the project formulates a local production for local consumption business model that brings high competitiveness, driven by the powerful partnership consisted of Thaioil handling plant operations and Mitsui assuming sales. We consider it indeed a very good project, for it’s value added to the basic chemicals coming from the refinery and can simultaneously contribute to the economic growth of local communities, as well as a better standard of living for the people in the area. LABIX will start selling product to customers in Thailand and other countries in the region to be in line with the ASEAN Economic Community drawing near in 2015. We are firmly convinced that this project will be a significant milestone for Thaioil and Mitsui, as well as for our respective nations of Thailand and Japan”, added Mr.Kazuya.
He continued, “LAB market is closely related to the demand for detergent and other cleaning agent. Global LAB demand in 2012 was around 3.2 million Ton, with growth rate of 2-3% or 70,000 to 100,000 Ton per year. Asia is the growth market, thanks to its population growth and also improves in the standard of living. LAB demand in Southeast Asia in 2012 was approximately 400,000 Ton with 3% growth rate. Major consumer is Indonesia, Vietnam, Thailand and Philippine. There is only one existing LAB producer in this region, so this region has to import LAB up to 250,000 Ton per year. Therefore, LABIX will contribute to the country's economic stability and sustainable development.”
LAB is a surfactant product categorized in Downstream Fine Chemical Product and a major ingredient in fabric and homecare business e.g. detergent and dish washing liquid. Thaioil Group by Thai Paraxylene Company limited (TPX) joined force with Mitsui & CO., LTD, a leading LAB trader in Southeast Asia as a strategic partner. With an expertise of petrochemical manufacturing of Thaioil Group and strong global trading network of Mitsui, a great collaboration of the two companies are formed under the name LABIX Company Limited, a 75:25 Joint Venture between TPX and Mitsui.
LABIX Company Limited will firstly focus on domestic market for self-sufficient consumption as well as to substitute LAB import and then to fill the net deficit market of Southeast Asia. LABIX will conduct marketing activities together with Mitsui & CO., LTD.