GC Announces 2023 Business Plan, Striving for Sustainability "Better for You, Better for Our World"
BANGKOK, March 3, 2023 /PRNewswire/ — Dr. Kongkrapan Intarajang, Chief Executive Officer and President of PTT Global Chemical Public Company Limited, or GC, announced the 2023 business plan striving for sustainability from the concept “the Closer, the Better” to respond to all walks of life and progress towards “Better for You, Better for Our World”, reflecting chemical innovation creativity and superior products for today and the future. GC is firmly committed to doing good for all and will be doing it better this year to help sustain the earth. From the previous year, there were many external challenges, this year GC will focus on rejuvenation and preparations to face 2023, by setting its sights in driving its business through its 3-Steps Plus Strategy: Step Change, Step Out, and Step Up, with allnex, a global leader in coating resins and additives as one of its growth platforms, with their strong financial status and a varied portfolio, to fulfill the global megatrends agenda.
Step Change
2023 project progress are as follows:
- Olefins 2 Modification Project that will enable the Olefins 2 Unit to additionally utilize propane as feedstock. This project is in line with GC’s strategy to enhance feedstock flexibility as well as enhancing long-term competitive capabilities. Commercial operations is expected to begin in Q1/2023.
- HMC PP Line 4 Project of HMC Polymers Company Limited, to increase polypropylene resins production capacity by an additional 250,000 tons per annum. Commercial operations began in December 2022.
- 2nd PLA Bioplastics Plant Construction Project of Natureworks Company Limited, in Nakhon Sawan Province, with a capacity of 75,000 tons per annum. Commercial operation is expected to begin in 2023.
- High-End Engineering Plastics Production Project of Kuraray GC Advanced Material (KGC), for which GC entered into a joint-venture partnership with Kuraray Company and Sumitomo Company of Japan. Commercial operations began in Q1/2023, producing 13,000 tons per annum of High Heat Resistant Polyamide-9T (PA-9T) and 16,000 tons per annum of Hydrogenated Styrenic Block Copolymer (HSBC). This is one of the future industries targeted for the global megatrends.
Step-Out
The strategy to continue to seek out opportunities, after the success in acquiring allnex to initiate growth in a new business or new country by adjusting the organizational structure to set up the international business arm as a means to further the company’s growth by focusing on future industries with a goal to seek out international business expansion, to address consumers’ requirements in line with the global megatrends, and to prepare for the establishment of the Thailand Innovation Hub that shall be center of research, innovations, and cutting edge technology for allnex to foster regional growth in Asia.
Step Up
GC’s roadmap to achieve the carbon emission reduction target for 2030:
- Efficiency-driven: implement projects to reduce GHG emission and uplift efficiency of several projects to utilize energy such as energy savings project, Maptaphut Integration (MTPI) Project, and the GHG emission reduction via alternate energy utilization project.
- Portfolio-driven: forge ahead in portfolio realignment to focus on low carbon businesses by investing in the High Value Business (HVB) and businesses that align with the Circular Economy principle and seeking out opportunities to leverage synergy for maximum value from businesses, markets, and technologies, i.e., allnex that GC has already acquired has a high profitability and ability to fulfill consumer requirements in the megatrends.
- Compensation-driven: continuing to implement projects to rehabilitate and strengthen the balance of the forest ecosystem in cooperation with governmental, private, and social agencies, and various communities, since 2013 and covering more than 2,500 rai, i.e., planting 80 rai of trees in the Eco-Forest Rayong Wanarom Project in accordance with the Eco-Forest principle, and fostering collaboration with network partners and investing in Corporate Venture Capital (CVC) to access Carbon Capture Utilization and Storage (CCUS) technology and innovation.
2022 Performance
Performance in 2022 yielded a sales revenue totaling 678,267 million Baht, rose by 46%, and in 2022, GC achieved an operating profit (excluding stock loss and loss from adjusting the value of inventories to equal the net worth to be received, accounting losses on foreign exchange and gains on financial derivatives, losses on derivatives for hedging, and other special items) of 18,984 million Baht.
- GC achieved financial success by issuing and offering of Thai Baht debentures in the amount of 30,000 million Baht to institutional investors and large investors in January 2022, 1.3 billion US Dollars debentures in March 2022, public offering of 7-year debentures in the amount of 17,000 million Baht in July 2022, signed a loan agreement with a commercial bank in the amount of 27,000 million Baht in September 2022, and GC’s first sustainability-linked loan with a credit limit of 15,000 million Baht to support GC’s sustainability operation. Additionally, GC’s 1.3 billion US Dollars debentures and sustainability-linked loans received The Asset Triple A Country Awards for Sustainable Finance 2022 from The Asset magazine.
- Fine-tuning GC’s business portfolio has been ongoing to support the strategic plan drive by focusing on the petrochemical business operation and seeking cooperation with new business partners.
- Reduction of investment proportion in the Global Power Synergy Public Company Limited from 2021 to last year.
- Cooperation with business partners including additional investment in the PVC business by investing in AGC Vinythai, or AVT, in which GC holds approximately 32% of shares.
- Seeking new partners in the company’s terminal and liquid cargo tank business – Thai Tank Terminal Limited, or TTT.
- Asset Monetization is an opportunity to seek new partners to invest in both existing businesses and joint business expansion in the future so as to be able to create a better long-term competitive advantage. The implementation of such guidelines will not only help the company to have new monies to support business growth according to the strategic plan, but will also help the Company to gain liquidity and be able to manage its finances effectively, such as reducing financial liabilities in order to be able to manage financial costs properly and enable the company to have an appropriate financial structure.
Success in Sustainability
In 2020 GC received international awards and sustainability certificates such as:
- GC is the first international chemical business in Asia to be ranked number one for four consecutive years in the Chemical Business Group of the Dow Jones Sustainability Indices (DJSI), through business operations integrating sustainability in accordance with ESG guidelines in all 3 areas: Environmental, Social, and Governance & Economic, reiterating its commitment to being a good organization, conducting businesses responsibly, and sustainably creating good value for the world.
- S&P Global Sustainability Award 2022, Gold Class in the Chemical Business, the highest level in S&P Global’s global sustainability assessment. With operations that prioritize sustainability through a balance of economy, society and environment – the cornerstone of sustainability – to help drive the organization toward its goals.
- The first and only Thai company in the Chemical Business to be ranked by CDP as the leader in Water Management (A Level) and in Environment Management on Climate Change (A- Level).
Better for You, Better for Our World
This year, GC has made further progress with its business partners in various sectors, such as the Collaboration Project between GC and PTT Oil and Retail Business PCL (OR) as sustainability partners to develop sustainability knowledge, ensure energy security, and conduct sustainable business throughout the value chain and develop businesses together, and the Project on Sustainable Development Cooperation and Business Alliance with Thai Airways International Public Company Limited, to develop knowledge on sustainability in the circular economy, to study and develop the use of sustainable jet fuel, and partnership in services and travels.
In addition to collaborating with organizations, GC is also cooperating with alliances and partners on various projects for example, Upcycling Upstyling, reducing used plastics through the YOUTurn Platform with communities and schools, as well as promoting the country’s Net Zero Mission to reduce greenhouse gas emissions in its collaboration with the Ministry of Natural Resources and Environment in planting mangrove forests, and planting trees under the concept of The More You Plant, The More Good You Do, to turn the waste dumps into forests with the Bangkok Metropolitan Administration.
#BetterForYouBetterForOurWorld #GCChemistryforBetterLiving
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