Leading Asian integrated petrochemicals firm SCGC Chemicals has announced plans to jointly develop a plant-based plastics plant with Brazilian petrochemical company Braskem, the Bangkok Post reported.

The facility would start bio-ethylene production in 2025 for use as a feedstock in the manufacture of bio-based polyethylene (PE), according to the 2 February report.

PE is a type of plastic used to make a range of products, including packaging materials and bottles.

Once operational, the factory in the Map Ta Phut area of Rayong would have a production capacity of 200,000 tonnes/year, SCGC president Tanawong Areeratchakul was quoted as saying.

As bio-based PE plastic is produced from plants, including sugarcane and cassava, the factory would help farmers earn extra revenue, Tanawong said.

The two companies, who conducted a joint feasibility study into the project’s potential, would form a joint venture to push ahead with the ethylene production project, the report said.

According to its website, SCGC has bases in three countries – Indonesia, Thailand and Vietnam.