Published on 16/05/2015
PTTGC plans two new factories SET-listed PTT Global Chemical Plc (PTTGC), Thailand's largest petrochemical maker, is expected to finalise plans by the third quarter for another two factories worth a combined US$1.2 billion baht. Chief executive Supattanapong Punmeechaow yesterday said the expansion would comprise a $200-million factory for metallocene linear low-density polyethylene (LLDPE) and a $1-billion plant for propylene oxide and polyols. The factories will be located in Rayong's Map Ta Phut Industrial Estate. The new plant for LLDPE, a feedstock for packaging products, will increase PTTGC's annual capacity to 700,000 tonnes by 2018 from 400,000 tonnes now. PTTGC will fund the plant itself. The other factory will produce value-added products as part of polyurethane production. PTTGC is talking with a strategic partner about a joint venture for another plant for propylene oxide and polyols, a feedstock for auto parts and coating products. Details of the project will be announced in the third quarter. PTTGC has finalised the location of its olefin cracker in Ohio. It also revised up its investment budget to $5.7 billion from $5 billion due to a possible rise in construction costs. Its first petrochemical facility in the US will have downstream products including high-density polyethylene, monoethylene glycol and ethoxylate. PTTGC, which has already been granted a licence to build an ethylene cracker and downstream petrochemical plant in Indonesia, is awaiting that government's decision on whether to combine its facilities with a new oil refinery developed by Saudi Aramco, the national oil firm of Saudi Arabia. It is also in talks with six potential partners about a joint venture there. The company yesterday released its first-quarter revenue figures, showing a drop of 30% year-on-year to 99.3 billion baht due to declining global oil prices. It posted a net profit of 5.63 billion baht, down by 11%, due to oil stock losses.
Mr Supattanapong said he expected the second-quarter performance would be better, as the spread price between polymers and naphtha had widened to $800 a tonne last week from $682 in last year's fourth quarter. The company has new annual capacity of 250,000 tonnes of phenol, 155,000 tonnes of acetone, 90,000 tonnes of glycol, 115,000 tonnes of paraxylene, 35,000 tonnes of benzene and 20,000 tonnes of othoxylene. PTTGC shares closed yesterday on the SET at 63 baht, up 75 satang, in trade worth 352 million baht.