Thailand's PTT had earmarked 600 billion baht of investment capital in petrochemical manufacturing facilities, oil refinery capacity expansion, and gas separation plants over the next five years as part of its strategy to become a multinational firm.
Market sales from the petrochemical business contributed around 700 billion baht, or 12% of the entire group's market value of 5.7 trillion baht. PTT Chemical Plc, the newly formed petrochemical subsidiary of PTT Plc, plans new investments of 44 billion baht over the next five years. The expansion was planned to achieve economy of scale for optimal cost-efficiency and to enhance its competitiveness. Part of the planned investment budget will be used to raise its olefins production to 1.86 million tpa in 2008, from the existing 1.52 million tpa, on completion of which the company will be at the forefront in Asia, since it uses cheaper natural gas as feedstock in making olefins.
Part of the funds will be used to expand business into downstream chemical products to diversify business risks and other supporting businesses to stabilise production and maintain cost-efficiency. The businesses include ethylene oxide/ethylene glycol, methyl ester/fatty alcohol, ethylene vinyl acetate, an ethane cracking unit, phenols and aromatics.
PTT Chemical might join PTT and The Aromatics Thailand Plc (a subsidiary of PTT), in the utility service project to supply power, steam and water to PTT Chemical's plant. It may also invest in PTT Polymer Marketing and Bangkok Polyethylene for the marketing and distribution of PTT subsidiaries' polymer products, as well as in the gas turbine generator project with a 35-megawatt capacity, and a waste heat boiler with an output of 70 tpa.
17-Mar-06 
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