IRPC, the petrochemical arm of national oil and gas conglomerate PTT Plc, is preparing to buy new assets in the speciality polymer manufacturing segment as it steps up efforts to earn more revenue from high-margin products.
The company plans to announce the purchases in the second half of this year.
IRPC is projected to spend a budget worth 50-60 billion baht, which is allocated for use between 2022 and 2026.
Revenue from speciality polymer products, which will enable IRPC to have a higher profit margin, is expected to make up 55% of earnings before interest, tax, depreciation and amortisation by 2030, up from 25%, according to the company.
At present, the remaining 75% comes from sales of commodity-grade petrochemical products and refined oil.
Chawalit Tippawanich, president and chief executive of IRPC, said the firm needs to focus on speciality polymers because it wants to avoid high competition in the commodity-grade polymer and oil refinery markets.
He said speciality polymers can be feedstock for the production of medical equipment and auto parts for battery-powered cars. They can also be used in food manufacturing.
IRPC announced earlier it wants to produce more speciality polymers to make high-quality materials that are often used in the medical industry, such as N95 face masks.
The speciality polymers are used to make non-woven fabric by using a melt-blown technique.
The company and PTT jointly established Innopolymed Co to produce medical equipment.
Its non-woven fabric production facility in Rayong has already started operation, with capacity of 2,000 tonnes a year.
In addition to using it to produce surgical masks, the non-woven fabric can be feedstock for making sanitary pads and baby diapers.
Mr Chawalit said the company's project to upgrade its oil refinery with a budget of 13 billion baht is making steady progress. The facility is scheduled to operate in 2024.
The upgrade should allow the oil refinery to produce diesel that meets the environmental emission standards of Euro 5.
