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May 24, 2017
By: Catherine Diamon
DIC has announced that it began consigned production of polystyrene, used in food packaging, in collaboration with Thai Styrenics Company Limited (TSCL) who is a subsidiary of PTT Global Chemical Public Company Limited (PTTGC) of Thailand, in early 2017. TSCL is a leading manufacturer of polystyrene whereas PTTGC represents Thailand’s integrated petrochemical and refining business and a leading corporation in Asia-Pacific, strengthened with its diversity of product in Aromatics and Olefins including wide range of polymer products. Valued for its excellent transparency, foamability and moldability, polystyrene is odorless, making it a popular choice in a variety of industries, notably food packaging and building materials. While shipments of polystyrene in Japan are currently stable, underpinned by firm demand for food trays—attributable to growth in the market for prepared foods prompted by an increase in single-person households—and for insulating materials containing expanded polystyrene, they are expected to taper off over the medium to long term. DIC thus recognizes the creation of overseas sales channels as an urgent challenge. The consignment production agreement between DIC and TSCL provides a solution to the needs of both companies. Aiming to make a full-scale expansion into the growing Asian polystyrene market, DIC sought to establish a relationship with a well-established manufacturer in Southeast Asia that has ties to regional packaging materials companies. The Asian polystyrene market continues to expand rapidly, paralleling growth in the gross domestic product (GDP) of key countries in the region. This trend is expected to persist for the foreseeable future. By offering its renowned high-value-added polystyrene, which helps realize thin, lightweight products, DIC will seek to strengthen its presence among not only Japanese, but also local manufacturers in the region by positioning to lock in robust demand. Collaboration with TSCL will ensure DIC’s ability to provide a stable supply of high-grade products. On the sales front, DIC will make effective use of DIC Group bases in Asia to ensure timely responsiveness and build customer trust, with the goal of increasing its regional polystyrene sales by 130% from the fiscal year 2015 level by fiscal year 2025.
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