PTT merger to be complete by year end

07-Nov-05

Thailand's N0. 2 Thai Olefins (TOC) and N0. 3 National Petrochemical (NPC) are expected to complete a merger in December to form PTT Chemical Plc. Upon completion of the deal, PTT Chemicals will have the capacity to produce 1.27 million tpa of olefins, making it the third largest producer in Asia after companies in Taiwan and Korea. PTT Chemicals Co will generate 57 billion baht in sales this year and 61 billion baht in 2006. Total assets of PTT Chemicals will stand at 85 billion baht. PTT Chemicals expects to post a jump in sales in the last quarter of the year on the back of a short supply of olefins products following the damage caused by Hurricane Katrina at US refineries and chemical plants. The new projects invested in separately by the two firms, total $1.3 billion and are expected to contribute steady additional sales to PTT Chemicals from 2006 to 2009. The shareholding structure of PTT Chemicals will be 44.25% held by PTT, 20.2% by Thai Petrochemical Industry Plc, 18.16% by the Siam Cement Group _ which currently holds 33.11% of NPC and 6.87% of TOC, 2.82% by HMC Polymer, 1.74% by Oman Oil, 1.56% by Vinythai, 1.47% by Bangkok Synthetics and 1.08% by Thai Plastic and Chemicals.