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Published on March 21, 2008

Thailand's biggest petrochemical firm will increase its overall capacity from 1.75 million tonnes per annum (tpa) this year to 2.88 million in 2010.

To achieve this high level, the company plans to invest about Bt90 billion during 2008-2010. Of the total, Bt60 billion will be used to expand polymer production to 1.53 million tpa. It currently produces only high-density polyethylene (HDPE) with a capacity of 500,000tpa.

The revenue growth will be driven by rising product prices

and new petrochemical projects, which will come on stream between now and 2010, president and CEO Adithep Bisalbutr, said yesterday.

 He said this would result in the company's annual revenue growing by an average of 15 per cent through 2012.

An HDPE plant in Iran, in which it holds a 10-per-cent stake, is expected to commence operations in the second quarter next year after a delay of more than a year.

PTT Chemical is also negotiating with international firms for mergers and acquisitions to expand its business globally and strengthen its international network.

"We expect to complete our negotiations this year," said Adithep. However, he declined to disclose any details.

The company plans to issue baht-denominated bonds worth Bt4 billion to Bt5 billion in the fourth quarter this year, which will go towards the expansion projects as well as the M&A plan.

It has a debt-to-equity ratio at 0.2 and expects this to increase to 0.5 next year.

The company is scheduled to stage roadshows in Japan, Singapore and Hong Kong in May in order to meet local investors - and also fund managers from Europe and the United States.

PTT Chemical yesterday announced that it would rebrand its polymer products under InnoPlus with the purpose of enlarging its customer base domestically and internationally. It earlier distributed HDPE under the NPCX and Thaizex brands.

Adithep said the new brand was part of its new marketing strategy to focus on creating an integrated value chain and to support its customers by making more value-added products to compete in the global market.

Chalida Ekvitthayavechnukul

The Nation