SET-listed Global Green Chemicals Plc (GGC), the biochemical arm of PTT Global Chemical (PTTGC), expects sales to increase by 20% this year, driven by palm-oil based products, although revenue will remain unchanged due to a drop in prices.
Managing director Kridsada Prasertsuka attributed the increase to a rise in sales of palm oil-derived methyl ester, also known as biodiesel 100 or B100, which are expected to grow by 20%.
B100 is mixed with diesel for use by motorists under the state's plan to depend less on fossil fuels.
Sales of fatty alcohol and refined glycerin, which are feedstock for cosmetic and pharmaceutical products as well as detergents and surfactants, are also estimated to grow by 5-10%.
However, Mr Kridsada expects revenue in 2023 to be on par with earnings last year which stood at 25.1 billion baht as the prices of products have decreased by 40-60% this year.
The company plans to boost its revenue through asset acquisition. It is in talks with oleochemical producers and will unveil the results early next year, he said.
Oleochemicals are feedstock for cosmetics products, including skincare, and some food supplements.
GGC earlier announced it would allocate capital spending of 2.5 billion baht to develop new oleochemical-based products to rake in more revenue.
The company also completed the construction of a biopolymer production facility at the Nakhon Sawan Biocomplex (NBC) in Nakhon Sawan's Takhli district.
NBC is co-invested by GGC and Kaset Thai International Sugar Corporation.
The factory is operated by NatureWorks, a joint venture between PTTGC and US-based Cargill Inc, which both hold a 50% stake.
NatureWorks plans to produce polylactic acid (PLA), a sugar-derived biopolymer which can be used in a variety of applications ranging from coffee capsules and food packaging to 3D printing filaments, hygienic masks and home appliances.
The factory will initially produce 600,000 litres of ethanol per day, around 60% of total production capacity, due to an insufficient amount of sugar, said Mr Kridsada.
He said GGC would boost sugar production by working with farmers and sugar millers to increase productivity.
PLA production would take place in the second-phase of NBC's development, with further construction scheduled to be completed by the end of next year and commercial operation expected to begin in 2025.
