PTTGC to see 7% sales rise in 2022

PTTGC to see 7% sales rise in 2022

PTT Global Chemical (PTTGC) expects its sales to rise by 7% next year due to expansion of production capacity and sales from mostly high-value-added chemical products from newly acquired assets.

The new sales volume will not only help offset the impact of the temporary shutdown of some oil refineries and naphtha cracker facilities for maintenance, but it will also drive business growth next year.

Jittasak Soonthornpan, PTTGC's vice-president for corporate finance and investor relations, attributed the sales increase to two new assets -- Frankfurt-based Allnex Holding GmbH (Allnex) and Vinythai Plc (VNT).

He said Allnex, which was acquired in July this year, is a prominent firm in the industrial coating segment. It has an almost 10% market share in this segment.

PTTGC earlier also acquired VNT, a polyvinyl chloride (PVC) maker, through a delisting tender offer to buy its 16.2% share in a move to strengthen PTTGC's position in the PVC supply chain.

These two asset acquisitions will give PTTGC business opportunities in the downstream chemical products market, notably high-value-added chemical products.

The company expects the US$4.8-billion Allnex deal and the $238-million VNT deal will start to benefit its financial performance at the end of this year and in February next year, respectively.

PTTGC's production capacity expansion projects are scheduled to start operation next year, also helping the company increase sales.

They include a plastic recycling facility, with a capacity of 45,000 tonnes a year, and capacity improvement for HMC Polymer Co -- 250,000 tonnes of polypropylene a year (the fourth production line) and 30,000 tonnes of super engineering plastic a year.

HMC Polymer Co was also acquired by PTTGC.

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