IRPC Plc, the petrochemical arm of PTT Group, is poised to become a key manufacturer of speciality polymers in the post-pandemic period to avoid tougher competition in the commodity-grade polymer market.
Speciality polymers can be produced for uses in various industries, including medical equipment, electric vehicles (EVs), batteries and floating solar power modules, said Chawalit Tippawanich, president and chief executive of IRPC.
The company wants to use speciality polymers to make high-quality materials that are often used in the medical industry, such as N95 face masks.
These materials are made of non-woven fabric using a melt-blown technique.
IRPC and PTT jointly established Innopolymed Co to produce medical equipment.
Its 260-million-baht non-woven fabric plant in Rayong is scheduled to start operation in December, with annual capacity of 2,000 tonnes. Operation was delayed from this month due to the spread of Covid-19.
Speciality polymers can also be used as materials for the battery production process, which involves a battery separator, as well as absorbent production.
The company plans to use part of its five-year capital budget worth 30 billion baht for speciality polymer development.
Half of the budget is to upgrade refined oil production under its Ultra Clean Fuel (UFC) project to meet the Euro 5 emission standard.
A portion of the money will be used to buy new assets, but Mr Chawalit declined to elaborate.
The 14-billion-baht UFC project is expected to commence operation in January 2024, with refined oil production capacity of 75,000 barrels per day.
In the auto parts segment, IRPC partnered with Japan Polypropylene Corporation (JPP) to jointly set up an EV business in Thailand.
Polypropylene compounds are an important material in auto parts production.
IRPC, which acquired a 50% share of Mytex Polymers Thailand, and JPP want to expand their polypropylene market in Southeast Asia.
During the first half this year, IRPC saw its revenue grow by 42% to 105 billion baht, thanks to an increase in global oil and petrochemical prices.
Mr Chawalit expects IRPC's speciality polymer products will make up 20% of net profit this year and plans to increase that proportion in the future.
