The figure was the same as this year's target because the company expects to lose some revenue from a temporary shutdown of two plants. Nevertheless, that is likely to be offset by full operation at another facility, he said.

Two ethylene and propylene plants will undergo 60-days maintenance next year.

Full capacity at its high-density polyethylene and ethylene glycol plant is expected to offset that, Aditheb said.

He predicted a decrease in margins for base-chemical products - such as ethylene, propylene and hydrogen. This was due to a petrochemical cyclical downturn and fierce competition.

Spread for commodity products is about US$600 (Bt21,900) per tonne, he said.

However, it would fall to about $540 a tonne because of more global suppliers.

The company is trying to reduce the proportion of revenue gained from base-chemical products because of price fluctuations. Moreover, the company will decrease business risk by expanding into petrochemical products and focusing more on producing value-added products.

He said demand for intermediate and downstream products was high because there were fewer competitors in the market due to the huge investment required.

For example, China requires about two million tonnes of ethylene glycol a year. It will continue to be a net importer over the next 10 years because it lacks the required raw materials.

The company's ethylene glycol production could help Thailand reduce its imports by 400,000 tonnes a year.

Aditheb said 65 per cent of 2006 revenue would be from base-chemical products and the remainder from intermediate and downstream value-added products.

He added that the company expected to generate 45 per cent of total revenue from base chemicals and 55 per cent from value-chain products by 2010.

Chalida Ekvitthayavechnukul

The Nation

RAYONG