Thailand's largest oil refinery, Thaioil Plc (TOP), plans to more than double its research and development (R&D) budget to at least 300 million baht in the next few years.
Chief executive Veerasak Kositpaisal said the company is spending 150 million baht on R&D this year, up from less than 100 million last year.
The budget will rise from 1% to 3% of the company's net profit in the next 2-3 years, reaching the same level as parent company PTT Plc.
Thaioil's net profit last year was 12.3 billion baht, down from 14.85 billion in 2011.
Mr Veerasak said the company plans to improve cost controls, production efficiency and the value of its products and assets through R&D.
Thaioil yesterday announced it will extend R&D collaboration with Chulalongkorn University's Petroleum and Petrochemical College (PPC).
The company has teamed up with PPC since 2008. The partnership has led to the launch of nine projects including an energy-saving process that can reduce Thaioil's energy costs by 250 million baht per year. Other projects included colour improvement, catalyst testing and ethanol production from pineapple waste.
From 2008 to the end of last year, Thaioil invested 70 million baht in the nine projects.
"We plan to cut production costs by at least 1% a year to sharpen our competitiveness against other oil refineries in the region," said Mr Veerasak.
Asst Prof Pomthong Malakul, PPC's dean, said the college has high potential in R&D because it has about 300 researchers.
Shares of TOP closed yesterday on the SET at 66.25 baht, up 25 satang, in trade worth 309 million baht.