PTT Global Chemical Plc (PTTGC), the petrochemical arm of national oil and gas conglomerate PTT Plc, is maintaining its sales growth target of 7%, thanks to additional production capacity, including that from two newly acquired assets.
The company is positive about the growth prospects despite the need to shut down some oil refineries and olefin crackers for maintenance and the impact of the Russia-Ukraine war.
Greater sales are partly being attributed to the buyout of Frankfurt-based Allnex Holding GmbH from Advent Group in July last year, said Jittasak Soonthornpan, PTTGC's vice-president for corporate finance and investor relations.
Allnex Holding is a prominent manufacturer in the industrial coating segment. The company has an almost 10% market share in the global coating market.
The share purchase of Vinythai Plc (VNT), a polyvinyl chloride (PVC) maker in Thailand, is also supporting PTTGC's sales in 2022.
In March last year, PTTGC acquired an additional 16.2% stake through a delisting tender offer. The acquisition, which added to its 25% shareholding in VNT, was aimed at strengthening PTTGC's position in the PVC supply chain.
VNT products are sold in Southeast Asia.
The two new assets also help PTTGC boost business opportunities in the downstream chemical business, with a focus on high value-added chemical products.
Additional production capacity for 2022 will also come from a polypropylene factory, named PP Line 4, which is scheduled to operate within the fourth quarter of this year.
The operation of PP Line 4, with capacity to produce over 1 million tonnes of polypropylene per year, was earlier delayed due to the impact of the Covid-19 pandemic.
PTTGC also expects its new plastic recycling plant to start operation to produce high-quality recycled plastic resins within the third quarter of this year.
The factory, located in Map Ta Phut, Rayong, is run by Envicco Co, a joint venture between PTTGC and Austria-based Alpla Packaging.
The facility can produce 30,000 tonnes of recycled polyethylene terephthalate (PET) a year and 15,000 tonnes of recycled high-density polyethylene annually.
Mr Jittasak said that PTTGC is also preparing to deal with the possibility of global economic recession through a variety of measures, including maintaining high liquidity, carefully controlling cash flow and cutting unnecessary expenses.