PTT Global Chemical Plc (PTTGC), Thailand's largest petrochemical producer by capacity, expects the industry worldwide to remain sluggish next year, but believes demand will increase for petrochemical products in some sectors.
The petrochemical industry has soured because a glut of products built up during the pandemic when economic activities were subdued under lockdown measures.
Paween Chiasakul, manager of PTTGC's investor relations division, said demand for petrochemical products in the textile, packaging and construction industries is likely to increase in 2024 thanks to a gradual economic recovery in many countries.
Demand from the automotive industry also has the potential to increase, he said.
PTTGC adjusted to the economic impact of the pandemic by producing more speciality-grade products, which offer higher revenue than commodity-grade products.
The company invested to improve oil refineries and develop petrochemical crackers under three projects: olefins reconfiguration, propylene oxide and olefin modification.
The three projects are completed, using some of the capital spending of 106 billion baht allocated for the period of 2017 to 2020.
In addition, PTTGC expects to earn solid revenue next year from the Frankfurt-based Allnex Holding GmbH, a firm the company bought in 2021, said Mr Paween.
Allnex, a prominent manufacturer of industrial coatings, aims to expand its production of high value-added products, he said.
Mr Paween expects sales to rise next year as its oil refineries and petrochemical crackers operate at full capacity.
The company does not plan to shut down production facilities for maintenance in 2024.
PTTGC said earlier it anticipates sales of its products to rise by 10% in 2024, up from a projected 17 million tonnes this year, attributed to higher demand in some overseas markets.
The company is monitoring global crude oil prices, which may increase next year based on heightened geopolitical conflicts and the continuation of crude oil production controls.