Corbion Purac eyes increase in PLA capacity

CORBION Purac said it may accelerate its foray into the biotechnology arena, by increasing its global PLA production capacity by a further 75 kTpa. The decision to invest will rest on securing at least one-third of plant capacity in committed PLA volumes from customers, the company said.

Making the next step in the bioplastics value chain by becoming a PLA producer is part of Corbion's updated strategic direction for 2015-2018. 

Tjerk de Ruiter, CEO of Corbion,said: “As part of our strategic review, we confirmed there is an attractive demand outlook for PLA, albeit at a lower growth pace than previously assumed. Given our strong position in lactic acid, our unique high heat technology and the market need for a second PLA producer, we plan to forward integrate in the bioplastics value chain, from being a lactide provider to a PLA producer.”

Corbion intends to invest €60-million investment in a 75 kTpa PLA plant in Thailand.

“We will only commence with this investment if we can secure at least one-third of plant capacity in committed PLA volumes from customers,” Mr. de Ruiter said. 

Worldwide PLA capacity is almost sold out and with the PLA market expected to grow to 600 kTpa by 2025, the market is seeking additional PLA suppliers. In line with this outlook, Corbion will also continue exploring strategic alliances as part of its PLA growth strategy  in order to enhance business opportunities while mitigating associated risks.

Corbion Purac will continue selling lactides to both existing and new PLA polymerization customers. Lactide sales for the coatings and adhesives markets will also continue. Many of Corbion’s existing polymerization customers have already successfully built a strong local presence and distribution channel, with great market coverage.