Braskem Siam Company Limited

Overview

Braskem Siam Company Limited represents a transformative partnership between Braskem, the world’s largest biopolymer producer, and SCG Chemicals, Thailand’s leading petrochemical company. The joint venture is developing Asia’s first and one of the world’s largest bio-ethylene and bio-based polyethylene production facilities in the Map Ta Phut Industrial Estate in Rayong Province, Thailand.

With an investment of approximately THB 19.3 billion (USD 491 million) and a design capacity of 200,000 metric tons annually, the Braskem Siam facility will produce I’m green bio-based polyethylene from ethanol derived from renewable sugarcane feedstock. Expected completion by 2028, the facility positions Thailand as Asia’s first bio-ethylene production center and demonstrates the strategic importance of Southeast Asia in global transitions toward renewable polymers and sustainable materials.

The project’s environmental impact is substantial, with the potential to reduce net carbon dioxide emissions in the atmosphere by up to one million tons per year, supporting global climate change mitigation objectives while establishing Thailand as a manufacturing center for sustainable polymers serving Asia-Pacific and global markets.

Company Background and Strategic Rationale

Braskem Siam emerged from strategic partnership between two major companies with complementary capabilities and shared commitment to sustainable materials development.

Partner Company Expertise

Braskem S.A. (Brazil):

World’s leading biopolymer producer
Pioneer in bio-based polyethylene development and commercialization
Global operational presence across Americas, Europe, Asia
Advanced research and development in renewable polymers
Established customer base and market relationships
Commitment to sustainable materials and circular economy
I’m green bio-based polyethylene technology platform and brand
Technical expertise and manufacturing excellence

SCG Chemicals (Thailand):

Thailand’s leading petrochemical company
Subsidiary of Siam Cement Group
Integrated chemical and petrochemical operations
Southeast Asian market knowledge and customer relationships
Industrial infrastructure and manufacturing capabilities
Government relationships and regulatory expertise
Financial strength and investment resources
Regional supply chain and distribution networks

Strategic Partnership Rationale

Complementary Strengths:

Braskem’s global biopolymer technology and expertise
SCG Chemicals’ regional market knowledge and infrastructure
Combined financial resources and investment capability
Shared commitment to sustainable materials innovation
Complementary customer networks and market access

Thailand Strategic Positioning:

Abundant renewable feedstock (sugarcane) availability
Established petrochemical manufacturing infrastructure
Government incentives and support for sustainable manufacturing
Strategic location for Asia-Pacific market access
Integration with existing regional supply chains

Market Opportunity:

Rapidly growing Asia-Pacific biopolymer demand
Regulatory pressures supporting bio-based polyethylene adoption
Corporate sustainability commitments driving demand
Gap in regional bio-based polyethylene supply
Opportunity to double existing global I’m green capacity

Bio-Based Polyethylene Technology and I’m green Platform

Braskem Siam specializes in I’m green bio-based polyethylene, a proven renewable polymer technology with established market acceptance and performance advantages.

Bio-Based Polyethylene Chemistry

Material Composition:

Polyethylene synthesized from bio-ethylene monomer
Bio-ethylene derived from sugarcane-derived ethanol
Chemically identical to conventional polyethylene
Fully compatible with existing infrastructure and equipment
Renewable material sourcing vs. fossil fuel dependency

Production Pathway:

Sugarcane fermentation to ethanol
Ethanol dehydration to ethylene
Polymerization to polyethylene via conventional methods
Integration with existing petrochemical processes
Established and proven manufacturing technology

Key Advantages:

Chemical equivalence to conventional polyethylene
Compatibility with existing processing equipment
No modifications to downstream conversion processes
Performance characteristics identical to conventional PE
Proven biodegradable and compostable properties

I’m green Brand and Technology Platform

Braskem’s Proven Technology:

Developed through decades of research and innovation
Commercial production and proven reliability
Established global customer base and market acceptance
Consistent product quality and specifications
Technical support and continuous improvement

Market Position:

Recognized global brand in bio-based polymers
Premium positioning and sustainability credentials
Customer acceptance and regulatory approvals
Established supply relationships and logistics
Integration into global biopolymer supply chains

Environmental Benefits:

Significantly reduced lifecycle carbon footprint vs. conventional PE
Renewable feedstock sourcing eliminating fossil fuel dependency
Carbon-neutral production potential through lifecycle assessment
Climate change mitigation through reduced emissions
Support for circular economy and sustainable materials transition

Feedstock Strategy and Sugarcane Integration

Braskem Siam’s competitive advantage derives from abundant Thai sugarcane availability and established agricultural supply infrastructure.

Sugarcane Feedstock Integration

Thailand Sugarcane Production:

Thailand among world’s largest sugarcane producers
Favorable climate and soil conditions supporting cultivation
Established agricultural infrastructure and expertise
Significant production capacity exceeding facility requirements
Cost-competitive feedstock sourcing
Supply security through diverse farmer relationships

Ethanol Supply and Integration:

Collaboration with existing Thai ethanol producers (e.g., Mitr Phol Bio Fuel)
Supply agreements securing feedstock for facility operations
Integration with established ethanol production infrastructure
Cost-competitive ethanol sourcing
Supply chain resilience through multiple supplier relationships

Supply Chain Economics:

Direct access to renewable ethanol feedstock
Cost advantages vs. imported feedstocks
Vertical integration from feedstock to finished product
Supply chain efficiency and margin advantages
Insulation from petroleum price volatility

Sustainability and Agricultural Integration

Farmer Relationships:

Support for sustainable agriculture and farming practices
Economic benefits to Thai agricultural communities
Value addition to agricultural production
Support for rural economic development
Integration with government agricultural programs

Sustainable Cultivation:

Encouragement of sustainable farming practices
Environmental management and resource conservation
Reduction of chemical inputs and environmental impact
Support for regenerative agriculture
Agricultural supply chain sustainability

Production Facility and Capacity Development

Braskem Siam’s facility in Map Ta Phut represents one of Asia’s most significant biopolymer manufacturing investments.

Map Ta Phut Industrial Estate Location

Geographic Significance:

Rayong Province, Thailand’s major industrial zone
Map Ta Phut Industrial Estate—advanced petrochemical hub
Proximity to existing petrochemical infrastructure
Integration with regional manufacturing ecosystem
Accessibility to Southeast Asian and Asian markets
Deep-water port access for international logistics

Facility Infrastructure:

State-of-the-art bio-ethylene production systems
Advanced polyethylene polymerization equipment
Process control and automation systems
Quality assurance laboratories and testing
Environmental monitoring and compliance systems
Warehousing and logistics coordination

Operational Design:

Fully-integrated bio-ethylene and polyethylene production
Continuous production capability at design capacity
Flexible production scheduling supporting market demands
High-purity product output and consistency
Environmental compliance and sustainability integration

Production Capacity and Design

Annual Capacity:

200,000 metric tons per year bio-based polyethylene
Equivalent to doubling existing global I’m green capacity
Integration of upstream bio-ethylene production
Continuous operation and high-capacity utilization
Flexible product grades and specifications

Product Range:

Multiple polyethylene grades and types
Diverse applications and performance characteristics
Customized formulations for specific customer requirements
Specialty and high-performance variants
Environmental performance across product range

Development Timeline

Construction Phase (2021-2028):

Project financing and investment approval (2021)
Site preparation and infrastructure development
Equipment procurement and installation
Construction and facility commissioning
Process validation and optimization
Environmental and regulatory certifications

Operational Commencement:

Expected facility completion: 2028
Startup and commissioning activities
Production ramp-up and process optimization
Quality validation and customer qualification
Full operational capacity achievement

Market Segments and Applications

Braskem Siam serves diverse global market segments leveraging polyethylene’s broad application range and environmental benefits.

Flexible Packaging Applications

Film and Flexible Packaging:

Mono-material and multi-layer flexible films
Food packaging and food-contact applications
Protective packaging and product wrapping
Agricultural and horticultural films
Industrial protective packaging

Consumer Goods Packaging:

Food and beverage packaging
Household product containers
Personal care packaging
Retail product packaging
Brand-specific customized packaging

Rigid Packaging and Containers

Injection-Molded Products:

Bottles and beverage containers
Food containers and closures
Industrial packaging and containers
Household and consumer goods
Customized rigid packaging

Thermoformed Applications:

Food packaging and trays
Beverage containers
Specialty thermoformed products
Protective and functional applications

Automotive and Industrial Applications

Automotive Components:

Interior trim and components
Protective and functional parts
Weight-reduction opportunities
Performance specifications fulfillment
Specialized automotive applications

Industrial Uses:

Technical and engineering applications
Industrial equipment components
Specialized performance requirements
Custom formulations and specifications

Geographic Market Scope

Asia-Pacific Primary Focus:

Largest biopolymer market globally
Rapid growth in regional demand
Regional regulatory support
Proximity-based logistics advantages
Integration with regional supply chains

Global Market Access:

Export capability to international customers
Support for global sustainability commitments
Integration into worldwide polyethylene supply chains
Established customer base from Braskem relationships
Global logistics and distribution infrastructure

Industry Position and Competitive Strategy

Braskem Siam occupies a significant position in global bio-based polyethylene production and Asia-Pacific biopolymers markets.

Global Leadership

Braskem Global Position:

World’s leading biopolymer producer
Pioneer in bio-based polyethylene commercialization
Established global customer base and supply relationships
Proven technology and manufacturing excellence
I’m green brand recognition and market position

Facility Significance:

World-scale bio-based polyethylene production
Establishment of Asia’s first bio-ethylene production
Doubling of existing global I’m green capacity
Positioning as major global polyethylene supplier
Integration into global sustainable polymer supply chains

Competitive Advantages

Technology Leadership:

Proven and commercialized I’m green technology
Chemical equivalence to conventional polyethylene
Proven environmental benefits and certifications
Decades of research and development
Continuous innovation and improvement

Feedstock Economics:

Direct access to abundant Thai sugarcane
Cost-competitive ethanol feedstock
Vertical integration from feedstock to product
Supply chain efficiency and margin advantages
Insulation from petroleum price volatility

Market Access:

Global customer relationships from Braskem
Established distribution and logistics networks
International regulatory expertise and compliance
Brand recognition and market positioning
Proven commercial viability

Partner Capabilities:

SCG Chemicals’ regional market knowledge
Thai industrial infrastructure access
Government relationships and regulatory expertise
Regional supply chain and distribution
Financial and operational resources

Certifications and Environmental Compliance

Braskem Siam’s products meet stringent environmental and quality standards, supporting market acceptance and customer confidence.

Certification and Approvals

Renewable Content Certification:

Verification of bio-based content
Renewable sourcing certifications
Carbon footprint analysis and verification
Lifecycle environmental performance assessment
Continuous monitoring and verification

Environmental Performance:

Carbon reduction verification vs. conventional PE
Lifecycle assessment documentation
Environmental management system compliance
Continuous environmental improvement
Regulatory compliance across jurisdictions

Quality Standards:

ISO 9001 quality management systems
Process control and quality assurance
Performance specifications and consistency
Food contact compliance where applicable
Regulatory compliance in major markets

Sustainability and Environmental Benefits

Braskem Siam’s bio-based polyethylene production supports global transitions toward sustainable materials and climate change mitigation.

Carbon Reduction and Climate Benefits

Lifecycle Carbon Reduction:

Significant reduction vs. conventional polyethylene
Renewable feedstock sourcing vs. fossil fuel dependency
Avoided extraction and processing emissions
Carbon-neutral or carbon-negative lifecycle potential
Up to 1 million tons per year CO₂ reduction potential globally

Climate Change Mitigation:

Support for climate change reduction objectives
Greenhouse gas emission reduction
Renewable energy and material sourcing
Integration with carbon neutrality and net-zero objectives
Global climate mitigation contribution

Circular Economy Integration

Renewable Material Sourcing:

Annual regeneration through crop cycles
Integration with agricultural production systems
Support for sustainable and regenerative agriculture
Renewable vs. extractive resource model
Closed-loop bioeconomy participation

Material Recyclability:

Conventional polyethylene recyclability compatibility
Integration with existing recycling infrastructure
Multiple lifecycle participation
Reduced need for virgin material extraction
Support for circular economy principles

Strategic Partnerships and Market Development

Braskem Siam leverages partnerships supporting market growth and operational excellence.

Partner Integration

Braskem Global Support:

Technology and process expertise
Global customer relationships and market access
International regulatory and compliance expertise
R&D and continuous improvement
Global supply chain and logistics support

SCG Chemicals Integration:

Regional market knowledge and customer relationships
Thai industrial and petrochemical infrastructure
Government relationships and regulatory expertise
Supply chain and distribution networks
Financial and operational resources

Customer Partnerships

Global brand companies and packaging manufacturers
Industrial and consumer goods producers
Automotive and specialty component manufacturers
Regional and international distribution partners
Technical support and collaboration

Financial Profile and Business Model

Braskem Siam operates with a proven business model and substantial financial backing supporting sustained operations and growth.

Business Model

B2B Polyethylene Supply:

Production and sale of bio-based polyethylene
Customer relationships with packaging and product manufacturers
Technical support and material specifications
Custom formulations and specialty products
Integration with customer supply chains

Revenue Streams:

Bio-based polyethylene material sales (200,000 MT/year capacity)
Premium pricing for renewable and sustainable credentials
Technical support and consultation services
Volume growth as market penetration increases
International export sales expansion

Financial Structure:

Joint venture of Braskem and SCG Chemicals
Substantial combined financial resources
Investment of THB 19.3 billion (USD 491 million)
Long-term strategic commitment to biopolymers
Access to capital for expansion and investment

Future Outlook and Strategic Vision

Braskem Siam is positioned for substantial success as a major global bio-based polyethylene producer supporting Asia-Pacific and worldwide markets.

Facility Operational Phase (2028-2035)

Production Ramp-up:

Full operational capacity achievement 2028-2029
Market penetration and customer development
Product quality validation and customer satisfaction
Supply chain optimization and efficiency gains
Margin improvement through operational leverage

Market Growth:

Rapid global bio-based polyethylene market expansion
Asia-Pacific biopolymers growth acceleration
Regulatory support for sustainable materials
Corporate sustainability commitment fulfillment
Consumer preference for renewable materials

Strategic Vision

Braskem Siam aspires to establish Thailand as Asia’s leading bio-based polyethylene production center and support global transitions toward renewable polymers. Through world-scale production and technological excellence, the company will serve rapidly expanding Asia-Pacific and international markets with sustainable alternatives to conventional polyethylene. Braskem Siam’s success demonstrates the feasibility of advanced biopolymer manufacturing in Southeast Asia, positions Thailand as a global manufacturing leader, and contributes meaningfully to climate change mitigation and environmental sustainability objectives.

Last updated: February 14, 2026

Sources:

🧬 Primary Materials

🎯 Market Segments

⚙️ Production Capacity by Biopolymer

Bio-ethylene and bio-based polyethylene