Dr. Kongaraban Indrajang Chief Executive Officer and Chairman PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Or PTTGC The business direction in 2024 is full of global economic trends and many industry uncertainties, but expects to be able to generate sales volume growth of 7%, higher than the previous year with a sales volume of 13 million tons, which is the result of no downtime for maintenance. As demand recovers, so do margins.
Demand in 2024 is expected to pick up from 2023 following a slight recovery in the petrochemical sector. The company is improving internal efficiency and reducing costs, including adopting digital transformation. Let's use it first. This will help reduce costs and increase profit margins. Focus on building strength from the foundation against the still unrelenting global economic situation. The company is being pressured to slow down by the Chinese economy, which is the main driving force. This means that the company is in over supply condition.
“The company has an investment budget for 2024 of approximately US$100-150 million (representing approximately 5.4 billion Thai baht, compared to the rate of 36 baht/dollar as of 16 February 2024) which will be used for its development. The core business of the company. and investment in subsidiaries such as the Nakhon Sawan Biocomplex project (collaboration between Company GC International CorporationSubsidiaries of PTTGC and Nature Works) is expected to be completed by 2025 including various business expansions. And continue to engage with new partners to create business growth.” Dr. Gongban say
Dr. Gongban He added that in terms of trends and operational plans for 2024, the company is focused on expanding the potential size of existing business groups to increase strength to meet challenges in multiple areas. And increase operational flexibility in a “high-value, low-carbon business” approach using a 3-step strategy: step change implemented in the right direction, exit and step up. and adapt to the changing industrial landscape.
1) Step change Improve efficiency and cost control by increasing the proportion of high-value plastic pellets and chemical products, including focusing on market-focused business development in collaboration with strong partners. 56% targeted and innovative products by 2028
For cooperation as always intended and encouraged by the Company, such as cooperation with WHA in joint ventures in logistics business. Potential growth and competitive ability to provide logistics services will result in lower costs and greener logistics development and increased profitability for the company. And pushing to collaborate with Allnex Holding GmbH, a world leader in the Coating Resins product business, manufacturing and selling coating materials and additives for use on all types of products, will leverage the company's innovations to generate growth and generate revenue in the chemical business. Available mainly in Asia and China. Thailand is expected to become Allnex's Southeast Asian hub.
2) Exit The company is looking for new opportunities for growth. While expanding the market for bioplastic products and sustainable products (Bio & Circularity), we are constantly looking for new business partners and collaborations in non-core businesses, and focus on products including recycled products, bio-refinery. Used for various products in many industries.
The company is still studying new businesses related to hydrogen and carbon, looking for strategic partners and non-core business. Leverage our strengths and expertise in the hydrocarbon business to make a difference in the future and return the business. In the past, PTTGC and Petrochemical have signed a cooperation agreement to explore technology for building net zero targets. Mitsubishi Heavy Industry Asia Pacific Co., Ltd. Or MHI-AP There are 2 main objectives: Study to compare the feasibility of using hydrogen and ammonia. It is a fuel for gas turbines and capture technology. Save Carbon Dioxide (CCS) in the process of reducing carbon dioxide emissions from generators. Read more to find ways to improve and increase efficiency in the engineering system to properly store carbon dioxide for the hydrogen production process or steam methane reforming (SMR).
3) Step up Build business sustainability The company is working to reduce glass and carbon dioxide emissions to achieve a goal of net zero by 2050, as well as maintain continued leadership across the company's portfolio. Activities to reduce greenhouse gas emissions from the production process by increasing efficiency (efficiency-driven) through the use of technology that reduces energy use. and switch to renewable energy or low-carbon energy.
including long-term business restructuring towards low-carbon business. (Portfolio-driven) The company has invested in allnex's performance materials business and ENVICCO's high-quality recycled plastic pellet business, with lower greenhouse gas emissions than normal business operations (GHG avoidance), totaling more than 630,000 tonnes of carbon dioxide equivalent. per year. and carbon storage and offsetting activities. (compensation-driven) with the use of various technologies. (Technological Solutions)
“The past performance results show that the company intends to conduct business with determination and in a sustainable and environmentally friendly manner. As a result, the company has become a leader in the international chemical business. “The best for you. Better for the world” and calls everyone “GEN S..Generation Sustainability” The new generation has a sustainable heart” creating a ripple effect in living net zero lifestyles, helping to save the world, supporting from top to bottom. Create a greater awareness and understanding of the world. Dr. Gongban Final notes
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