Siam Chemicals to revive oil business

Siam Chemicals to revive oil business

Siam Chemicals Co (SCC) is planning to resume its petroleum business after 15 years of debt restructuring.

President Chira Ratanarat said the company will focus on industrial chemicals, lubricants, petroleum-based and alternative fuels.

"We have already recovered over the past 15 years from over-investing and massive debts during the 1997 financial crisis," said Mr Chira.

Controlled by the Ratanarat family, Siam Chemicals saw its foreign loan liabilities double from 5 billion baht to 10 billion baht due to the Thai currency's devaluation during the tom yam kung crisis of the late 1990s.

The company listed on the Stock Exchange of Thailand in 1994, raising fresh capital for its Si Chang Terminal project in Chon Buri.

Launched in 1995, the project aimed to serve growing demand in the Eastern Seaboard.

The project was confiscated by the banks while SCC was delisted and has kept a low profile since then.

During 2011 and 2012 the company revamped the logistics system at its plant in Samut Prakan and expanded its lubrication oil production capacity at a cost of 500 million baht.

It also spent more than 100 million baht during the last few years on research and development of lube and additives for biofuels.

"We will start to reinvest with a lower debt than we had in the past," said Mr Chira.

This year, the company projects revenue growth of 10% to 10 billion baht. The revenue target for 2014 is being reviewed to be in line with the economic situation, he said.

One of Thailand's largest lube makers, Siam Chemicals produces 5 million litres per month and supplies to more than 60 brands in Asia.

Capacity will be doubled to 10 million litres within three years.

Yesterday, SCC announced that it had been appointed sales agent for US-based Infineum's additives in Thailand for five years starting from 2014.

The company is conducting a trial for lube oil for E85-vehicles and diesohol (a mixture of regular diesel, ethanol and methyl ester).

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