IRPC has launched five types of styrene plastic resin and polymer additives as part of its five-year investment plan to shift to specialty products, which generate higher gross profit margins.
"IRPC has a policy to focus more on manufacturing specialty chemical products in order to increase the company's profitability," CEO Pailin Chuchottaworn said yesterday.
"Styrenic products will be the major key factor to drive our revenue and profit. We have five other types of styrenic products that are under development for launch throughout this year," he said.
The company's affiliate Thai ABS had developed five styrenic products from its existing acrylonitrile butadiene styrene (ABS) plant. It has commercially marketed four types of the products since early this year and the revenue and gross profit margin of the ABS segment have increased by 150 per cent and 300 per cent, respectively.
Green ABS is only the type that will be commercially marketed in 2013.
Pailin did not reveal the exact figures for revenue and gross profit margin for ABS.
Green ABS, which is produced from para rubber, is the leading type among styrenic products. This is also the first time in the world that styrenic products have been produced from para rubber.
A IRPC source said the revenue share of specialty chemical products was lower than 10 per cent. About 60-70 per cent of the US$1.2 billion (Bt39.8 billion) five-year investment budget will be spent on developing specialty products.
Pailin said the company expected the revenue proportion of specialty chemical products to increase.
The other types of styrenic products are an anti-bacteria product, methyl methacrylate butadiene styrene (MBS), which is a powder additive used in the making of impact-resistant opaque and transparent plastic, ABS powder and an anti-dripping additive powder.
The anti-bacteria product will be used for mixing with plastic resins to retard growth and get rid of bacteria in the manufacture of health and hygiene products. ABS powder was invented to increase impact and heat-resistant properties for various kinds of plastic.
IRPC will manufacture 1,200 tonnes of anti-dripping additive, 6,200 tonnes of ABS powder and 3,600 tonnes MBS this year.
Thai ABS has a production capacity of 120,000 tonnes of ABS per year. Some of the output will be Green ABS.
The company plans soon to invest $77 million to increase production capacity by 600,000 tonnes per year.
Customers for the new styrenic products are in the automobile, IT and electrical-appliance industries.
IRPC is interested in seeking customers both domestically and internationally. Thai ABS already exports ABS to major markets such as China and Japan.
