Cementhai Chemicals Company

Thailand

According to the company website, Cementhai Chemicals Company (CCC) was established in April 1995 as the petrochemical branch of Siam Cement (SCC) (Cementhai Website, accessed July 15, 2013).

Date: 2004 – Unclear

Deal: In 2004, ICIS reported that Cementhai was in talks to form a joint venture with Iran’s National Petrochemical Company (NPC) and Japan’s Itochu for a 300,000 ton per year high-density polyethylene (HDPE) project in Assaluyeh, Iran (ICIS, June 7, 2004).

In June 2005, SCC on behalf of CCC, Iran’s National Petrochemical Company, Japan’s Itochu, and Thailand’s PTT Chemical entered into a joint venture to develop a chemical project to produce HDPE, according to the Thai News Service. The project was worth $225 million (Thai News Service, November 7, 2006). (Accessed via Factiva)

According to an industry publication, SCC reported that the project was facing delays due to political issues coupled with shortages in labor and equipment (Chemical Week, November 22, 2006). (Accessed via LexisNexis)

According to Fox News, the joint venture was issued $122.2 million in guarantee coverage from the World Bank’s Multilateral Investment Guarantee Agency (MIGA). In a statement made to Fox News in February 2008, a World Bank spokesman claimed that the guarantees were approved by the agency in 2005. The guarantee insures Cementhai, Itochu and Thailand’s National Petrochemical Company against “war and civil disturbance,” and potential breach of contract by the Iranian government (Fox News, February 2, 2008).

Platts reported that the joint project in Assaluyeh, known as Mehr Petrochemicals Company (MHPC), was 90 percent complete in September 2008. However, the project was being delayed by U.S. political pressure (Platts Petrochemical News, September 19, 2008). (Accessed via LexisNexis)

However, the project has since become operational. According to ICIS, the Mehr Petrochemical joint venture was set to resume “high – density polyethylene film shipments” after having suspended production for two months (ICIS, May 23, 2011).

Ties to U.S. Business: According to USASpending.gov, and the Federal Procurement Database, Cementhai has not received any U.S. government contracts in the last ten years (USASpending.gov, accessed July 15, 2013, and Federal Procurement Database, accessed July 15, 2013).

Last Updated: August 7, 2013