Acquisition of assets of Apex is a move aimed at expanding production to meet economies of scale, which would increase its cost competitiveness in the global market. Vinythai Public Co. Ltd., Southeast Asia's third largest polyvinyl chloride (PVC) producer, plans to expand capacity by acquiring the operating assets of Apex Petrochemical Co. Vinythai's major shareholders are Belgium's Solvay SA (49.99%), PTT Chemical Plc (24.98%) and the Charoen Pokphand (CP) Group (11.85%).
Apex has annual production capacity of 120,000 tons at its plant in Map Ta Phut, Rayong province. After the integration with Apex, Vinythai's production capacity would rise to 330,000 tons. It is also undergoing an expansion project to boost capacity by another 70,000 tons. After meeting domestic demand, the company will be well positioned to tap growing demand for PVC in the export market, particularly from Southeast Asian countries.