IRPC Plc, the SET-listed petrochemical arm of PTT Plc, has introduced a new high-value-added plastic that is expected to help reduce expensive polymer imports, increase the use of natural rubber and eventually support farmers.
President Sukrit Surabotsopon yesterday said the new product was an acrylonitrile butadiene styrene (ABS) polymer blended with 40% natural rubber.
The polymer, which IRPC calls Green ABS, is strong, flexible and suitable for use as a material for luggage.
Mr Sukrit said Green ABS was also applicable to industrial products including motor parts, electrical appliances, helmets and oil and gas pipelines, so demand should be strong.
IRPC will produce 6,400 tonnes of Green ABS annually compared with 177,000 tonnes of normal plastic. Green ABS production will require about 135 tonnes of natural rubber from struggling farmers.
Production of high-value products was the aim of a huge investment scheme under IRPC’s Phoenix product development projects with a combined investment of 90 billion baht from 2013-16.
Mr Sukrit said Phoenix projects for hygiene and value-added products would be completed by the third quarter and help to increase profits by 2-3% or 4-6 billion baht.
"Normally, Green ABS costs about 50% more than normal plastic, whose prices are falling in line with oil prices. However, Green ABS can access various consumers, especially those who care about the environment," Mr Sukrit said.
The Government Pension Fund yesterday sold 880 million shares in IRPC at 4.16 baht each, slightly below market price, in a deal worth 3.66 billion baht.
Mr Sukrit said the sale equated to 4% of IRPC's capital and was unlikely to affect company operations.
IRPC shares closed yesterday on the SET at 4.46 baht, up six satang, in heavy trade worth 5.23 billion baht.