Nature Works LLC, the world's largest producer of bioplastics, has shortlisted four countries in Asia including Thailand as potential destinations for millions of dollars of investments to expand production capacity.

The Minneapolis-based company is studying sites for its second Asia-Pacific plant to double its polylactic acid (PLA) capacity outside of its US base.

The potential locations include Thailand, Malaysia, Singapore and China, chief executive director Marc Verbruggen said yesterday at a seminar on Thailand's opportunities to serve the regional bioplastics market.

"We will evaluate the locations for a potential new resin production facility based on estimated demand growth in the region and availability of feedstock suppliers," he said.

Other criteria include the size of the local market, logistics, energy costs, investment incentives and local partners, said Dr Verbruggen.

Candidates will be selected by the last quarter of this year with a final selection in the third quarter of next year. The plant is expected to start operating in 2014.

The bioplastics business worldwide has a positive outlook because consumer product manufacturers and consumers have become much more concerned about environment-friendly products, he said.

Bioplastics are currently more expensive than plastics derived from petroleum. Dr Verbruggen said the costs of bioplastics would be competitive once oil prices stood at US$80 per barrel.

The price of oil is around $50 now but forecasters expect it to head up to $100 once the world economy and demand recover.

Khunying Kalaya Sophonpanich, the Science and Technology Minister, said Thailand has more potential than regional rivals to win the Nature Works project, given its abundance of raw materials, namely molasses and cassava.

Logistics infrastructure including the new airport, a deep-sea port, as well as research facilities are also available to serve the industry.

Research and investment incentives are possible while a number of local partners would be keen to jointly develop the project, she said.

"The government strongly supports the project since Thailand could upgrade research and development activities nationwide to tap into the high demand for bioplastics," she said.

Phietoon Trivijitkasem, honorary president of the Thai Bioplastics Industry Association, said downstream industries such as automotive and electronic parts would also benefit if Nature Works chose Thailand.

Thailand requires about 5-6 million tonnes of petroleum-based plastics per year for domestic consumption and processing for export. Data on bioplastic consumption were not yet available, he said.