Thai Olefins Plc (TOC), the upstream petrochemical subsidiary of PTT PLc, expects revenues to rise by 10 billion baht from 23.8 billion baht last year. TOC has projected at least 40% growth in total revenue this year, which can be attributed to capacity expansion and value-added products.
Capacity expansion would include:
* Increase in production capacity for olefins, ethylene and propylene to 875,000 tpa from 575,000 tpa last year.
* TOC's JV with Cognis Thai Co to set up Thai Ethoxylate Co, to produce fatty alcohol ethoxylates (FAE) as raw materials for medical and personal care products.
* A 20% stake in Vinythai Plc - a major local vinyl producer producing PVC. Vinythai will use the proceeds of the share sale to double its production of vinyl chloride monomer (VCM), a feedstock for PVC production, to 400,000 tpa. This expansion will serve a dual role: improve Vinythai's competitiveness and also benefit TOC by boosting its available supply of ethylene, currently at 9,000 tpa.