Aromatics spends big on expansion
The Aromatics (Thailand) is spending US$50 million (Bt1.79 billion) to increase production capacity.
The company predicts revenue and profit will grow by 10 per cent this year thanks to higher world prices and rising international and domestic demand for paraxylene. Executive vice president Permsak Shevawattananon said last week that the company would spend $100,000 boosting cyclohexane production by 30 per cent from the current 150,000 tonnes a year. This should be realised by May. A further $20 million will be spent speeding completion of expansion to its first aromatics plant, due for completion in 2009. Its second aromatics plant will be commissioned in the third quarter of next year. The company will then pour in another $30 million to increase paraxylene and benzene production by 20 per cent by 2010, he said. When the expansion is complete in 2010, The Aromatics will have paraxylene production of 1.3 million tonnes a year - up from 530,000 tonnes at present. Benzene capacity will rise from 300,000 tonnes to 730,000 tonnes over the coming three years. Cyclohexane production will reach 200,000 tonnes in the same year. The Aromatics' long-term strategy is to produce more value-added products in demand, such as nylon, Permsak said. A third aromatics unit is planned for 2012, depending on demand. The company will know more in two years, he said. Executive vice president for business and finance Atikom Terbsiri said an additional 2.8 million tonnes from the Middle East and 1.67 million tonnes from China would boost world paraxylene capacity in 2010. The Aromatics will concentrate on the domestic market, where more than 600,000 tonnes are imported each year. The company predicts paraxylene demand will grow 6.2 per cent and benzene 5.2 per cent in the coming year. Demand in China is 3 million tonnes this year, and new production facilities in the Middle East are delayed. Therefore, the spread between end product and raw materials will increase more than 10 per cent in 2007. Meanwhile, major shareholder PTT is studying the merger of The Aromatics and Rayong Refinery. There could be a decision at the beginning of next month, Atikom said.
Chalida Ekvitthayavechnukul The Nation
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