Dr. Kongkrapan Intarajang, Chief Executive Officer of PTT Global Chemical Public Company Limited, announced the company’s operational direction for 2021 highlighting a policy of “strength from within and building new opportunities in the new normal,” accelerating and upgrading its three-step strategy to strengthen its leadership in the chemicals business at the global level and contributing to an improved quality of life in compliance with sustainability.
1. Step Change – Strategy to increase competitiveness: Continuing to boost GC’s strengths including manufacturing safety and stability while increasing competitiveness by ensuring manufacturing units and infrastructure are more resilient in their use of feedstock and expanding the ability to create value added products. The company demonstrated improved integrated management through its Map Ta Phut Integration project, together with its market expansion in Southeast Asia to solidify the strength of its business regionally. Furthermore, the company has developed diverse High Value Products (HVPs) to strategically meet the demands of customers and global markets.
2. Step Out – Strategy to discover opportunities for new business growth or new businesses abroad: Searching for growth opportunities to leap into new businesses including High Value Businesses (HVBs) with strong growth and profit potential, through mergers and acquisitions, while using Corporate Venture Capital (CVC) to tap into new businesses with outstanding technologies and innovations and establishing a stronger position internationally to develop the business as GC’s second home base.
3. Step Up – Strategy to build business sustainability: Becoming a pilot company in sustainability at the global level. GC is focused on operating its business based on the Sustainable Development Goals (SDGs) and achieving a balance between environmental, social, and governance (ESG) factors using the GC Circular Living approach as a key mechanism in implementing climate actions, holistic water management, integrated operations of the circular economy, and operational improvements of CSR projects to develop social enterprises (SEs) with communities.
GC expands its scope and scale to upgrade sustainable developments in 2021
GC is committed to implementing its ESG activities that reinforce its position as a pilot company driving the SDGs encompassing three major objectives:
1. Climate Actions: Promoting goals to reduce greenhouse gas emissions by 52% per ton of production (scopes 1 and 2) by 2050 from a 2012 base year, and by 20% from internal business operations by 2030. GC and its value chain partners have also teamed up to provide guidelines to make climate actions more effective and efficient.
2. Waste Management Platform: Initiating the “YOUturn” platform, an integrated waste management approach that returns plastic waste to the recycling process leading to durable and sustainable solutions. The project involves sorting and collecting plastic waste at drop-off points and their transfer to recycling plants where they are transformed into value-added new products through the upcycling process. The project also aims to improve how partners collaborate by connecting all sectors in the ecosystem that lead to commercial production. Meanwhile, GC is set to open Thailand’s first integrated food-grade plastic recycling plant within 2021.
3. New Circular Model (Sustainability + Health Care)
3.1 Sustainability + Protection: Sustainability goes hand in hand with strengthening health and sanitation. And the innovative personal protective equipment (PPE) products to tackle COVID-19 pandemic being produced under GC’s Greater Care brand using the company’s plastics and chemical products including coveralls, reusable isolation gowns made from 100% rPET resin, powered air-purifying respirators (PAPRs), shoe covers, and hand gel under the GelCo brand are all helping to keep everyone safe.
3.2 Sustainability + Hazardous Waste Management: Sustainability goes hand in hand with proper hazardous waste management. The “How To Yeak… How to Manage Infectious Waste” project initiated by GC provides hands-free red waste bins and red bin bags made from GC’s plastic resin to sort and collect infectious waste. These supplies were given to the Office of the Prime Minister, educational institutes, and shopping malls to reduce the risk of contamination.
3.3 Sustainability + Food Safety: Sustainability goes hand in hand with food delivery to reduce the burden of single-use plastics. GC partnered with the Ministry of Natural Resources and Environment and food delivery operators to implement a project that replaces single-use plastics with bioplastics, an environmentally friendly alternative.
In addition, customers are offered additional options to help reduce plastic waste which has dramatically increased as a result of COVID-19.
Dr. Kongkrapan added that GC is well-positioned to handle any abrupt changes in the future, which will help the company achieve its goals. The company initiated the “Fit” project to improve the effectiveness and flexibility of its operations which will lead to a reduction in risks and costs, while the adoption of advanced technologies will contribute to a stronger and more sustainable future.
GC Defies the Odds Improving its Petrochemical Business During the Crisis
In 2020, the petroleum and petrochemical business was affected by the spread of COVID-19. However, having an integrated and continuous product line together with GC’s supportive measures such as cost-efficiencies and operational improvements throughout the organization resulted in adjusted EBITDA in 2020 of 28,579 million baht which was on a par with 2019. Furthermore, thanks to the favorable conditions of the petrochemical business in some product lines in the last half of the year, GC managed to generate a profit from its operations in Q4/2020, recovering from the previous quarter. In the fourth quarter of 2019, Olefins and Derivatives products continued their recovery with strong momentum. The company’s adjusted EBITDA in Q4/2020 reached 9,514 million baht or a 52% increase compared to Q3/2020, and a 132% increase compared to Q4/2019.
When including the impact of stock gains and net reversals in NRV, GC reported net profit of 6,405 million baht in Q4/2020, a 200% increase compared to 2019, contributing to net profit of 200 million baht in 2020.
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SOURCE PTT Global Chemical Public Company Limited (GC)