Siam Cement expects a boost to this year’s profits with the start up of a US$1.2 bln petrochemical plant that will triple the size of high-margin petrochemical products produced by the Thai company. Under current conditions, the Thai major is witnessing a slowdown in domestic sales of cement, ceramic tiles and other building materials. The petrochem plant start up will help counter this slowdown. . The plant can produce 1.7 mln tpa of ethylene and propylene. Since the first half of the year, test runs have been started, keeping run rates at the facility at about 70% of capacity.
Siam Cement, Thailand’s number three company by market value has increased investments in petrochemical plants in Thailand and Vietnam. Demand for chemicals used to make plastics has surged as economic growth rest of Asia spurs sales of cars, electrical appliances and other consumer products.