Purac and Indorama Ventures in Alliance Discussion for PLA

CSM's subsidiary Purac and Indorama Ventures PLC (IVL) are in discussions to set up a Polylactic acid (PLA) manufacturing facility in Thailand, with an initial capacity of 10,000 tons per annum being raised to 100,000 tons per annum after developing application specific grades. This product would be based on high purity (GMO free) Lactides produced by Purac. The Lactide monomers for the production of PLA will be sourced from Purac's Lactides production plant in Rayong, Thailand as well as from other Purac sites.

This PLA is GMO-free, natural, and a biodegradable material that is a sustainable alternative to oil-based polymers. PLA has a lower carbon footprint than most other polymers and can be marketed as a green alternative for packaging materials, fibres and non-woven textiles. The products would be marketed by IVL through its existing global marketing and sales network.

The product made by the combination of unique Lactide raw materials and unique PLA production process is able to deliver a quality that is stable at much higher temperature ranges than other bioplastics. The properties of this polymer allow this to be used for many textile and packaging applications which have not been possible with other bio-based products so far and will thus open a large latent demand. PLA has many uses, like upholstery, disposable garments, awnings, food packaging, and disposable tableware.

"This collaboration with IVL is an important step in the market development for PLA because in addition to being the largest polyester producer in the world, IVL is a leading manufacturer of raw materials for textiles and packaging" says Gerard Hoetmer, Chief Executive Officer of CSM. "This partnership will widen the scope of such biodegradable applications and accelerate our market development of PLA. It will be another milestone on the way towards providing an important role for bioplastics in the fast-growing packaging and materials space."

"We strongly believe in creating superior value for our customers by investing in sustainable products and technology." says Aloke Lohia, Group CEO of Indorama Ventures. "Purac gives us an opportunity to enter the space for a new generation of highly sustainable, biodegradable, low carbon footprint materials."

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