SET-listed PTT Global Chemical Plc (PTTGC), the petrochemical arm of oil and gas conglomerate PTT Plc, is pushing ahead with a plan to make more speciality polymers for sale as competition intensifies in the petrochemical market.
Speciality polymers are high-value products expected to generate higher revenue for the company.
PTTGC is struggling with a glut of petrochemical products in the global market from new factories in East Asia and the Middle East, as well as the impact of the US-China trade war as Beijing reduces its exports of petrochemical products to Washington, focusing on Asia, said Pornsook Limsathit, vice-president for corporate finance and investor relations at PTTGC.
The company started a plan to adjust its polymer production last year and will now put it into action, said Ms Pornsook.
The company set a goal to have earnings before interest, tax, depreciation and amortisation from speciality polymers at 30% within 2030, increasing to 45% by 2035, she said.
The adjustment in polymer production is among PTTGC's ongoing efforts to improve and further develop its businesses.
These include a move to give more support to Frankfurt-based Allnex Holding GmbH.
PTTGC acquired Allnex, a prominent maker of industrial coatings, in a buyout worth US$4.75 billion in 2021.
The company is enhancing the operations of its France-based Vencores, a chemical manufacturer acquired in 2022. The goal is to reduce production costs and minimise losses in manufacturing processes, said Ms Pornsook.
PTTGC is also improving the business operations of other firms under its wing, which is scheduled to be completed within the second half of this year, she said.
In the first half of the year, the company saw its revenue grow by 14% to 322 billion baht from 294 billion baht in 2023, with net profit surging by 122% to 1.2 billion baht, up from the loss of 5.5 billion in the corresponding period last year.