SET-listed PTT Global Chemical Plc (PTTGC), Thailand's largest petrochemical producer, has allocated 100 billion baht to expand its capacity in the Eastern Economic Corridor by 13% over the next two years.
Most new capacity will be in the existing olefin and aromatics downstream petrochemical chain, as well as high-value petrochemical products and speciality chemicals.
Total petrochemical capacity will increase to 9.3 million tonnes per year from 8.9 million tonnes at the end of last year. All projects will be at the Map Ta Phut industrial estate in Rayong, near PTTGC's existing production facility.
President and chief executive Supattanapong Punmeechaow said PTTGC will invest 30 billion baht in four major production facilities this year.
The investment plan comes as petrochemical prices are expected to rise over the next decade, after slowing down in recent years.
All projects involve olefin reconfiguration implements for feed stock of general plastic or everyday-use plastic products. Samsung Engineering and TTCL were awarded the construction service contract.
The softanol project involves the development of a production facility for the main raw material contained in many cleansing products used in kitchens and bathrooms. PTTGC has teamed up with Nippon Shokubai Co and Mitsui & Co to conduct a commercial feasibility study.
A final investment decision is expected by March, and the project is expected to start operations in 2022.
The poly oxide and polyol production facility will be under the polyurethane product chain.
The last unit, to be built at a cost of US $228 million (7.2 billion baht), will produce 400,000 tonnes per year of low density polyethylene, a special-grade plastic for food product packages.
This year, PTTGC set up a sales and production business units in Yangon and Ho Chi Minh City. The unit in Myanmar started operations last month, and the one in Vietnam will commence in April.
"We have allocated a huge budget to expand our capacity in this surging cycle," said Mr Supattanapong.
Plastic demand is accelerating in both countries, he said.
PTTGC sales rose 24% last year to 437 billion baht with a record 39.3-billion-baht profit.
PTTGC shares closed yesterday on the Stock Exchange of Thailand at 93.25 baht, down 25 satang, in trade worth 1.58 billion baht.