In a bid to gain from higher profit margins, Thailand’s IRPC Plc plans to change its focus from commodities to specialty plastic. This step will move IRPC (Southeast Asia's number one integrated petrochemical complex) closer towards a leading position in petrochemicals in Asia by 2014. About two years ago, IRPC hauled its entire production line to produce just petrochemical products and moved to improve margins by focusing on niche markets served by high-value specialty or engineering plastics. Since price fetched by commodities is in line with crude oil prices, it tends to be volatile and go through cyclical ups and downs. Margins of specialty products are generally higher and more stable due to less competition.
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