Bangkok: GC aims to turn around losses to 4,500 million baht in revenue per year, pushing EBITDA to 10,000 million baht by 2030. After 2024, PTT Global Chemical Public Company Limited (GC) announced its operating results for 2024, with a total revenue of 604,045 million baht, a decrease of 2% from 2023, with a net loss of 29,800 million baht. In 2025, it aims to turn around from losses and break through the lowest point of the petrochemical industry, aiming to reduce costs and increase revenue by 4,500 million baht per year by reducing overall efficiency, adjusting cost structures, reducing expenses, enhancing organizational efficiency, and increasing liquidity, enhancing competitiveness and expanding high value and low carbon businesses (High Value and Low Carbon Business), preparing to import ethane from the United States as the first country in the country to replace other raw materials to reduce costs in the long term, pushing Map Ta Phut to become a Specialty Hub of Southeast Asia, expanding the potentia
l of allnex, and driving the Bio and Circularity business to create sustainable solutions for the industry.
According to Thai News Agency, Mr. Narongsak Jivakanan, Chief Executive Officer of GC, said that the industry as a whole is facing a volatile global economy due to the changing US policies and the oversupply of the petrochemical business. As a result, the company had a total revenue of 604,045 million baht in 2024, a decrease of 2% from 2023, with a net loss of 29,800 million baht. After deducting one-time special items and losses from restructuring, the operating loss was 3,400 million baht. Despite the losses, GC is moving forward to turn around the business, stop losses, and aim for sustainable growth by effectively managing costs and expanding into high-value and low-carbon businesses. GC is committed to turning around its performance with Holistic Optimization to accelerate the business back to normal amidst the industry’s lowest point. It aims to reduce costs and increase revenue by 4,500 million baht per year through cost savings, increasing liquidity from existing assets, and improving operations to b
e more efficient. It will also strengthen its strengths with medium-term measures through 3 key approaches: increasing competitiveness, strengthening the potential of high-value businesses, and sustainable business growth by setting an EBITDA target of 10 billion baht within 5 years or by 2029.
GC has taken urgent measures to increase efficiency, reduce costs and maintain business stability by reaching an ethane supply agreement with PTT, expecting to receive an additional 20% of ethane allocation from 2024. In addition, the company has managed its assets to maximize their benefits under the Asset Light approach and reduced capital expenditure (Capex), including implementing liquidity enhancement measures through revolving credit lines to maintain a strong financial position and support future growth.
In terms of enhancing raw material security and increasing long-term cost competitiveness, GC will be the first to import ethane from the United States for use in Thailand to replace other raw materials. It has signed an agreement with PTT and global partners, including subsidiaries in Enterprise Products Partners, MISC Berhad, and Thai Tank Terminal Co., Ltd., to procure and transport 400,000 tons of high-quality ethane per year for a period of 15 years. GC can use ethane as a raw material without having to upgrade the plant’s infrastructure, which has been designed to accommodate ethane from the start, reducing the need for additional investment. The project is expected to start operations in 2030.
GC moves forward with allnex SEA Hub in Rayong, which is currently studying the feasibility of the first phase and is expected to make an investment decision by 2025, focusing on Waterborne Coatings and Specialty Coating Resins to expand the market in the specialty chemicals industry. At the same time, the company drives allnex to grow continuously through strategies to expand the market and increase competitiveness.
In 2024, allnex increased production capacity at its largest plant in Zhejiang Province, China, and invested in a new plant in Mahad, India, which is expected to be completed in Q3 2025. This project will enhance its manufacturing and distribution capabilities in high-growth markets.
In addition, developing Map Ta Phut as a Specialty Hub is also one of GC’s key strategies to support high-value, low-carbon businesses. We are currently working with the government to attract global partners to promote businesses throughout the supply chain and enhance Thailand’s competitiveness, while studying collaborations with other business partners to bring new projects into the Specialty Hub, focusing on industries that use advanced technology and are environmentally friendly, creating a comprehensive center for the specialized chemical industry, such as the collaboration with Toray to study and develop technology for producing specialty chemicals from agricultural waste, suitable for the automotive, textile, and electronic parts industries, with funding from the Japanese government. The study is expected to be completed in 2027.
GC aims to drive sustainability through environmentally friendly chemical solutions covering a variety of markets and industries, from packaging, clean energy, biomaterials to specialty chemicals, in order to respond to the global market trend that emphasizes the circular economy. GC focuses on 4 main product groups in the Bio and Circularity business, including oleochemicals, bioplastics, recycled plastics, and biofuels and biopolymers.
In addition, reaffirming its leadership in sustainability, GC has been ranked in the Top 1% of the Dow Jones Sustainability Index (DJSI) for the global chemical industry by S and P Global and has been ranked No. 1 for 6 consecutive years, the first and only company in the world in the chemical business group, reflecting its commitment to conducting business sustainably and creating value for all sectors. Most recently, GC received an A (Leadership Level) assessment, the highest level, for 5 consecutive years in terms of water management (Water Security) under the assessment framework of the world’s most trusted sustainability assessment institute, CDP, in 2024, out of a total of over 22,000 companies participating in the assessment.