HMC Polymers in Thailand has secured a EUR347m ($475m) loan with nine banks to fund expansion plans, according to The Bangkok Post.
HMC Polymers plans to use the cash to fund the construction of two production facilities due to be commercially operational in the second half of 2009.
The facilities will boost HMC Polymers’ current polypropylene (PP) annual production capacity of 440,000 tonnes to 750,000 tonnes.
One of the new facilities will produce propane dehydrogenation (PDH) that will feed into a new PP production facility.
HMC President Niels Nielson said the extra capacity would be used to serve the growing domestic market. He added that the expansion would meet domestic demand for four to five years after completion.
Polypropylene manufacturer PTT has a majority stake of 41% in HMC Polymers, which it acquired last year.
Half of the loan has been provided by offshore organisations including HSBC, KBC, Calyon, Standard Chartered and SMBC.
The rest has been delivered by Thai banks including Bangkok Bank, Siam commercial Bank, Krung Thai Bank and the Government Savings Bank.
