Japanese glassmaker AGC Inc. is planning to set up a new company during the first half of 2022 by integrating its three chemical units in Thailand and Vietnam.
AGC plans to merge AGC Chemicals (Thailand) Co. and Vinythai Public Co. in Thailand and AGC Chemicals Vietnam Co. into a new company to promote its chlor-alkali business in Thailand, Cambodia, Laos, Myanmar and Vietnam, the Tokyo-based firm, formerly known as Asahi Glass Co., said in a news release last Friday.
The new company's name, location, capital amount and other details have not been determined, but AGC plans to hold a stake of at least 65 percent with the remainder expected to be held by companies such as PTT Global Chemical Public Co., a major Thai petrochemical company.
Under the reorganization, the two Thai companies will be dissolved, while the Vietnamese company will be held 78.1 percent by the new firm.
The caustic soda and polyvinyl chloride resin markets in Southeast Asia are expected to grow about 4 percent per year, AGC said.
Vinythai Public, based in Rayong Province in eastern Thailand, was set up in 1988. It makes and sells vinyl chloride, vinyl chloride raw materials and caustic soda. With capital of 7.1 billion baht ($230 million), AGC holds a 58.78 percent stake and PTT Global Chemical Public has a 24.98 stake.
Bangkok-based AGC Chemicals (Thailand) was established in 1964, making and selling caustic soda, hydrochloric acid, liquid chlorine, caustic potassium and potassium carbonate. The company, with capital of 1.4 billion baht, is AGC's wholly-owned subsidiary.
AGC Chemicals Vietnam, based in Ba Ria-Vung Tau Province in southern Vietnam and set up in 1995, produces and sells products such as vinyl chloride.
By integrating the three chemical companies in the Indochinese Peninsula, AGC aims to streamline its production and improve its competitiveness, an AGC spokeswoman told NNA.
The company also plans to enhance its business base by strengthening cooperation with PTT Global Chemical Public, which has an advantage in the supply of ethylene and other materials in the area, she said. (NNA/Kyodo)