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| PTT Chemical President Aditheb Bisalbutr |
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Bigger is almost always better in this world of continuing economic globalization and this trend has not escaped many companies reaching for the top.
In Thailand, two major players in the petrochemical and chemical sectors — National Petrochemical (NPC) and Thai Olefins (TOC) — recently joined forces to form what has become the country’s biggest and Asia’s third-largest producer of olefins and related downstream goods.
Although NPC and TOC were subsidiaries of the PTT Group, they had different corporate cultures and business strategies. But, PTT Chemical President Aditheb Bisalbutr is highly optimistic about the merger, believing that TOC’s boldness and NPC’s conservativeness will complement each other.
‘‘The blending of the strengths of NPC and TOC will create a great synergy that will make it a great regional player. We target to be in the top 10 in the Stock Exchange of Thailand (SET),’’ he says.
Following its very successful initial public offering, PTT Chemical has emerged as the largest petrochemical company in the SET based on market capitalization and intends to become the gas-based petrochemical flagship company of the PTT Group.
‘‘We expect operations to increase production by 8 percent next year,’’ says Bisalbutr, who expects revenues to reach $1.5 billion in 2006.
Having drawn up its short- and long term plans, PTT Chemical will diversify and also manage its risks so that the company can stabilize income levels and minimize losses during the down cycle of the upstream processes.
Aside from making olefins, PTT Chemical produces a wide range of downstream petrochemical products, including polyethylene, ethylene oxide and ethylene glycol. The diversity in downstream products adds value to the company’s olefins and minimizes risk because price and business cycles for downstream products differ from those for upstream.
‘We have experience in doing business and are a reliable producer. I hope this reminds our investors that we are looking after them’
‘‘We foresee a down cycle in the coming year so we have issued a $300 million bond over a 10-year period. This gives us good liquidity with our business’’ Bisalbutr explains. ‘‘We will be able to invest in a project like a new cracker and some of the new polyethylene business.’’
Meanwhile, Bisalbutr is prepared to meet any challenges in the future, having worked in the industry for many years. ‘‘In this market, the view has to be long term especially when looking at a plant. You have to make decisions without being able to see (the problems). If you make the right decision, you will know it four years later. It’s about projection,’’ he says.
As with all new companies, Bisalbutr hopes the new image will increase consumer confidence in their products and services, as well as in their commitment to preserve the environment.
‘‘We have experience in doing business and are a reliable producer. I hope this reminds our investors that we are looking after them. We take our products’ impact on the environment very seriously,’’ he says.
Although it has established strong exports to China and the United States, PTT Chemical plans to expand its business on a more global scale. With combined potential output of about 1.52 million tons a year, the company is clearly well equipped to take on the world market.
www.pttchem.com |