The company's president and chief executive, Aditheb Bisalbutr, said it was earlier planned to resume the issuance of bonds in the second half of this year to fund the building of a new olefins cracker and polyethylene and biodiesel plants with a combined value of U$1.3 billion (Bt48.6 billion).

"PTT Chemical has sufficient cash flow and part of Bt28 billion raised from capital-increase shares, to be paid by its parent firm, PTT Plc, in December," Aditheb said.

Construction will begin on the company's new olefins cracker at end of the year or early next year and it is expected to be complete in the fourth quarter of 2009. The plant will boost the company's ethylene production capacity from 1.5 million tonnes per year to 2.8 million tonnes.

"We have no need to issue bonds at the moment," Aditheb said. "We plan to issue bonds in the coming year because interest rates are tending to be lower."

PTT Chemical is aiming for revenue of Bt70 billion next year, the same as this year. However, it expects its growth to average 14 per cent per year from 2006 to 2009.

Aditheb said he expected the firm to record rapid growth in 2010, although the petrochemical cycle is forecast to be at its lowest point then, due to oversupply, particularly from Iran.

"We plan to reduce our production costs, boost our production capacity and produce more value-added products. In this way, we are confident of having a good performance in the year of the petrochemical slowdown," he said.

PTT Chemical yesterday launched its "Open Innovation for Life" project, in partnership with four leading institutes: Chulalongkorn University, King Mongkut's Institute of Technology Lat Krabang, King Mongkut's University of Technology Thon Buri and the Thailand Resources and Environmental Management Institute.

The project's main objectives are to support the growth of the chemicals industry and its upstream and downstream businesses.

It will align PTT Chemical's five product development platforms - care chemicals, bio-based chemicals, animal health and nutrition, performance materials, and performance chemicals - with new research initiatives.

Chalida  Ekvitthayavechnukul

The Nation