THAILAND Firms want incentives for bioplastics

The association called on the next government to offer tax incentives, soft loans, grants or subsidies to financially support bioplastic manufacturers and make their prices more competitive with conventional plastics.

"State agencies such as the Oil Fund should be used as a tool to promote the uses of bioplastics by imposing levies on petroleum-based plastics to cross-subsidise bioplastic prices," said Mr Pipat.

He said Thailand is a preferred destination for bioplastic plants because of the constant and abundant supply of raw materials such as sugar and tapioca. However, the high cost of bioplastics makes them unattractive to consumers.

Countries such as Japan, South Korea and Taiwan are going to phase out petroleum-based plastics from their markets within a decade due to environmental concerns.

This should be the opportunity for Thailand to capture the market if it can commercially develop bioplastics, Mr Pipat said.

PTT Global Chemical and US-based Cargill have been searching for a location for the second polylactic acid plant in Southeast Asia and Thailand is on the shortlist.

Prior to that, PTT Plc and Japan's Mitsubishi Chemical announced a plan to set up a joint venture to develop bio-succinic acid in Thailand at a cost of 7 billion baht.

Assoc. Prof. Phietoon Trivijitkasem, vice-chairman of the Biotech Industry Club under the Federation of Thai Industries, said Italy-based Novamont SpA is also looking for an opportunity to set up a production base in Thailand and the company has studied investment privileges and government policy regarding the business.

He said the new government should be more active in promoting this sector because bioplastics will be another sunrise industry for the country to develop.

North America and Europe are the biggest markets for bioplastics.

"We should develop a platform for bioplastics to grow in Thailand because it will create a lot of jobs and revenue from exports," said Assoc. Prof. Phietoon.

He said Thailand should look at the possibility of imposing an ecology tax on petroleum-based plastics and incentives for bioplastic producers.

"Having commercial production of bioplastics will not only create benefits for Thailand's economy such as employment but also mitigate environmental problems caused by the uses of fossil fuels," Assoc. Prof. Phietoon said.

Source: Daily “Bangkok Post”, Bangkok; 2 Apr 2014
(Syed Rashid Ali, Karachi, Pakistan)