PTT Global Chemical (PTTGC) expects to phase out its production of polymers used for making single-use plastic bags this year as it is committed to more environmentally friendly manufacturing.
Five years ago, the company announced it would reduce polymer production from 150,000 tonnes a year to zero by the end of 2023.
Kongkrapan Intarajang, chief executive of PTTGC, said some production lines will be changed to produce polymers that can be used to produce thicker plastic bags so they can be reused.
The government policy to phase out single-use plastic bags was initiated in late 2019. Some other plastic products are anticipated to be added to the phase-out list later.
However, when the pandemic hit Thailand in early 2020, uses of single-use plastic bags increased as people were advised to stay at home, leading to more orders of food and beverages online, mostly delivered in plastic bags.
"We will go ahead with our commitment despite the fact that demand for this type of plastic remains strong," said Mr Kongkrapan.
In another development, PTTGC yesterday announced the "Vision to Reshape GC" campaign by diversifying into the high value-added (HVA) polymer market.
The company set a target to have HVA products increase its earnings before interest, tax, depreciation and amortisation (Ebitda) to 70%, up from 54% this year, within 2030, while Ebitda for upstream and mid-stream chemical products is expected to fall to 30% from 46%.
Upstream and mid-stream products include phenol, acetone as well as diesel and fuel oil-based products.
PTTGC said earlier HVA chemical products from acquired assets, including Frankfurt-based Allnex Holding GmbH (Allnex), would play a major role in driving sales.
Allnex, which was acquired for 148.41 billion baht last year, is a prominent firm in the industrial coating segment. It has an almost 10% market share in this segment.