The CEO of PTT Global Chemical Public Company Limited (PTTGC) Mr. Narongchak Jiwaganan expressed his vision after assuming office. Pursuing the 3 Steps Plus strategy and pushing Map Ta Phut as a hub for high-value and low-carbon chemical products in Southeast Asia, it highlights specialty products that support EBUTDA in creating sustainable development. After facing challenges, this year's earnings were stable compared to last year.
“As the next step to create sustainable growth for GC, we are ready to pursue the 3 steps plus strategy of Step Change – Step Out – Step Up to enhance competitiveness and growth in the changing environment. We bring readiness for innovation Possibility to produce chemicals and bioplastics We have experience and expertise We expand and respond to trends and needs of new industries in line with global trends.Mr. Narongchak said.
Moving forward with the 3 Steps Plus strategy will help maintain a strong base. Aiming for a high-value and low-carbon business group to increase competitiveness, create synergy and adjust the portfolio, penetrate domestic and international business through allnex and NatureWorks, as well as create growth opportunities in Map Ta Phut and form strategic partnerships in response to future industry mega-trends. PTT is ready to work with the team on a project to capture and store carbon dioxide. Expand into a future business
The company will relocate to Map Ta Phut through investment from its subsidiary Allnex, and join forces with NatureWorks, a world-class producer of polylactic acid (PLA) bioplastics, to build a new integrated PLA production plant. It is the flagship of the Nakhon Sawan Bio campus that will drive future business growth. Supporting operating profit before interest, taxes and depreciation to increase from the current 20% to 30% by 2020, non-inventory or specialty debt repayment (EBITDA) by 2020.
Mr. Narongchak said the high-value and low-carbon business group through allnex, which has 34 factories and coating resin businesses worldwide, will focus on expanding markets and developing chemicals.
As for the development of Allnex's manufacturing sites (Hubs) in different continents, allnex has been successful in creating the China hub, so it is set to expand manufacturing sites in countries with growth potential including the Mahat factory in India and new locations in the future Map Ta Phut factory, Thailand, a hub in Southeast Asia for automotive, It focuses on products in the coatings market in industries with high growth potential, including electronics and semiconductors, packaging, and industrial metals. Special Decoration for Furniture and Building Coatings (Special Decoration)
Regarding Map Ta Phut's plan to set up a factory in Thailand, it is currently being studied and planned which type of product manufacturing will be most effective. This will be an expansion of the business by allnex in line with GC's strategy to adjust its business portfolio to generate more revenue from the high value product business that requires innovation and advanced manufacturing technology. Clarity is expected by 2025.
Such investment is considered an upgrade to create investment opportunities in Map Ta Phut. Supporting investment and economic expansion in Southeast Asia. The Southeast Asia region is expected to have a GDP growth of 4.6% due to the economic recovery and therefore plans to attract investment in high value/specialty chemical businesses, support investment in various base building industries, recruit and develop strategic partnerships. Produced in Southeast Asia
“With the strength of the Map Ta Phut industrial park in terms of infrastructure and location readiness as a hub for exports to Southeast Asia and the global market. Today, we see interest in investing in modern industries in Thailand and neighboring countries, and the per capita chemical usage rate has a lot of room to grow even more compared to other continents, where G.C. Be able to respond to needs and develop products in collaboration with customers in various industries. So, this is a business opportunity for GC.
As for the construction progress of a new integrated PLA production plant (in which PTTGC holds a 50% stake along with Cargill), it is expected to be completed by the end of 2025 and the company will be able to recognize revenue in proportion to its stake. In 2026, Thailand's first biological complex will use sugarcane as the main raw material to produce lactic acid, which is used as a raw material to produce PLA, with a production capacity of 75,000 tons per year, helping to strengthen the country's bio and green sectors.
GC continuously integrates principles of circular economy to develop strategy or create business sustainability. Under the ESG (Environment – Society – Governance, Environment, Community, Good Governance) framework, we are committed to working with companies in Carbon to aim for net zero greenhouse gas emissions (Net Zero Target) by 2093 by investing in Corporate Venture Capital (CVC). The Capture and Storage (CCS) project is both studying capture technology and opportunities to expand business using business models using low-carbon hydrogen (blue / green hydrogen). the future.
The step change strategy will focus on continuously improving the operational efficiency of factories in the Map Ta Phut Industrial Park. Linking the value chain with greater benefit and value to reduce production costs and reduce environmental impacts. Future collaborations with various partners can support the development of high-value chemical products. It is considered a comprehensive investment management for sustainable growth.
- Maintain steady earnings this year to accommodate lower oil prices, but still benefit from increased production capacity. Go ahead to reduce interest burden
PTTGC CEO expects this year's revenue to be stable compared to last year's total revenue of 630 billion baht, following the downward trend of crude oil prices. This year it is expected that the price of oil will be $80 per barrel. But supported by high productivity. This can be seen from Allnex's sales volume which grew by 10% in the first quarter.
As for the 2nd quarter of 2024, Allnex's overall business is expected to continue to grow. Meanwhile, the refining business is expected to improve. But the olefins business still has challenges.
This year, the company is still under pressure from factors outside the country. Especially when manufacturing capacity is overflowing in the market. Slow recovery of the European economy due to low-cost foreign producers, geopolitical issues and high energy prices, US economic slowdown affecting demand growth, competition from players with raw material advantages and complexities in geopolitics are affecting supply chains and investment.
However, the company continues to make progress in reducing costs. Especially by reducing financing costs, the company will reduce the interest burden to 1,000 million baht by the end of this year. Through the gradual purchase of bonds (bond buyback), the company is preparing to record additional profits from the resale of bonds worth 750 million baht in the second quarter as well.
By InfoQuest News Agency (18 June 2024)
Tags: PTTGC, Narongchak Jiwaganan, PTT Global Chemical, ASEAN, Chemicals