SET-listed IRPC, a petrochemical arm of national oil and gas conglomerate PTT Group, plans to apply its expertise to new business development projects, notably healthcare and electric vehicles (EVs), under its long-term business vision devised for the post-pandemic period.
The IRPC board is expected to approve the new business vision by next month, following several discussions about the new initiative, said Chawalit Tippawanich, president and chief executive of IRPC.
The move is in line with a global trend and PTT's plan to speed up growth of the group's new businesses.
IRPC's new business options were necessitated after it suffered from price fluctuations of oil and petrochemicals, especially during the pandemic.
The company reported one oil stock loss worth more than 10 billion baht.
Under the new business vision, IRPC wants to generate earnings before interest, taxes, depreciation and amortisation (Ebitda) from new businesses at a rate of 25% by 2025, up from zero at present.
It intends to increase Ebitda from these businesses to 50% by 2030.
The new vision aligns with IRPC's 36-billion-baht capital expenditure planned for the next five years, said Mr Chawalit.
In the healthcare industry, IRPC is preparing to hold talks with its partners to set up a synthetic rubber medical glove production facility in Thailand.
A business model has yet to be concluded as the company is conducting a feasibility study of the project.
Butadiene, a key petrochemical product, can be a fundamental feedstock for the production of this type of medical glove.
This organic compound is a key constituent of many synthetic rubbers.
IRPC also wants to produce more speciality polymers to make high-quality materials that are often used in the medical industry, such as N95 face masks.
These materials are made of non-woven fabric using a melt-blown technique.
IRPC and PTT jointly established Innopolymed Co to produce medical equipment.
The venture's 260-million-baht non-woven fabric plant in Rayong is scheduled to start operations in December, with an annual capacity of 2,000 tonnes.
In the auto parts segment, IRPC partnered with Japan Polypropylene Corporation (JPP) to jointly set up an EV business in Thailand.
Polypropylene compounds are an important material in auto parts production.
IRPC, which acquired a 50% share of Mytex Polymers Thailand, and JPP want to expand their polypropylene market in Southeast Asia.
The company also plans to upgrade its refined oil production under its Ultra Clean Fuel project to meet the Euro 5 emission standard.