GC adjusts its business portfolio, focusing on investing in low-carbon businesses, adjusting its crude oil refinery to produce SAF oil, expected to start selling in January 2025, while the second bioplastics plant in Nakhon Sawan Province is expected to start operating in late 2025, accelerating the recording of impairment of 2 subsidiaries, cutting 20 billion baht.
Mr. Narongsak Jivakanan, Chief Executive Officer of PTT Global Chemical Public Company Limited (GC), said about the business portfolio adjustment to become a low-carbon organization in line with the goal of reducing net greenhouse gas emissions to zero by 2050 that GC is the first Thai company to upgrade a crude oil refinery with advanced refining technology to accommodate the remaining products from production, adding value to used vegetable oil, and leading to the production of sustainable aviation fuel (SAF), which is considered a renewable energy (Ronewable and Sustainable Energy) with a low carbon product life cycle, helping to reduce env
ironmental impacts. The plan is to start commercial production (COD) in January 2025, initially producing 500,000 liters per day and gradually increasing to 20,000 tons per year, by supplying SAF to PTT Oil and Retail Business Public Company Limited (OR), which has airline customers.
As for the investment in a new integrated bioplastics production plant in Thailand in Nakhon Sawan Province, the second of NatureWorks LLC, located in the Nakhon Sawan Biocomplex project, it is expected to start commercial production by the end of 2025.
However, the company is currently considering what to do with PTT Asahi Chemical or (PTTAC), in which the company holds a 50% stake together with its Japanese partner, Asahi Kasei Corporation. It is expected that there will be clarity in the fourth quarter of this year after the joint venture partner has set aside an impairment provision in PTTAC of approximately 9,326 million baht.
As for its subsidiaries, Vencorex France SASU (Vencorex France) and Vencorex TDI SASU (Vencorex
TDI), which have been experiencing losses after market conditions changed following the downturn in the petrochemical industry, the Company has decided to enter into a corporate restructuring process in Lyon, France on September 10, 2024. The process is expected to take approximately 3-4 months.
Vencorex suffered heavy losses. Even though GC managed to reduce costs, it was unable to turn Vencorex around. It had to rely on the court process to find a way out for the business.
However, it is expected that Vencorex and PTT Asahi Chemical will record impairments of no more than 20 billion baht. As for allnex, even though it was affected by the recent downturn in the petrochemical industry, causing sales volume to decrease, the profit margin per unit did not decrease. Recently, allnex has improved profits.
Source: Thai News Agency
