- Strategic Relationship with PTT
- Competitive Cost Structure
- Fully Integrated and Diversified Product Portfolio
- Strong Cost Position from Strategic Location
- Highly Experienced Management Team
Strategic Relationship with PTT with Flexible Feedstock and Secured Product Offtake
Strategic Relationship with PTT:Our major shareholder, PTT, is the largest producer and supplier of natural gas, petroleum and related products in Thailand (by market share and revenue). We benefit from our relationship with PTT, which is majority-owned by the Government, in a number of important respects. This includes stability, credibility, and expertise as well as customer base.
Secure Feedstock Position and Offtake Arrangements:We have entered into long-term arrangements with PTT, and to a lesser extent, other parties for both supply of our feedstock and offtake of our products. Although as global commodities, the prices that we pay for our feedstock and the prices at which we sell our products vary in accordance with international benchmarks, our secure contractual position on both our intake and product output sides for our existing production plants provide important stability to our business.
Competitive Cost Structure:
We are one of the few petrochemical companies in Asia that use gas as a feedstock in olefins production, while other regional peers are naphtha-based in which the feedstock price fluctuates in line with the price of crude oil. Gas price that we buy from PTT is calculated by the formula under agreement of both parties.
|Source:||IHS (formerly CMAI)|
|Note:||MDE = Middle East, NAM = North America, NEA = Northeast Asia, SEA = Southeast Asia, WEP = Western Europe.|
|MDE cash costs are average values of Iran and Saudi Arabia.|
Integrated Refinery and Petrochemicals Platform and Diversified Portfolio of Businesses and Products
Integrated Refinery and Petrochemicals Platform:
Since the Amalgamation in October 2011, our production covers and links the major components within the carbon value chain, including the production of refinery, aromatics and olefin products and their downstream derivative products. Our plants have the ability to process a variety of crude and natural gas feedstock, reducing our dependence on any given type of crude or natural gas feedstock. We also benefit from our ability to produce higher value-added petrochemical products instead of selling those products in their intermediate stage at marginal prices to the market.
Diversified Portfolio of Businesses and Products:We have seven business units producing a broad range of petrochemical and refinery products. In addition to our principal refinery, aromatics and olefin businesses, we also manufacture and distribute intermediate and downstream derivative products, including polymers, EO-based performance products, green chemicals and high volume specialties products. We believe that our diversification enables us to reduce risk from product prices volatility and increase operating margins.
Full range of product offering reduces business volatility and provides future opportunities to expand to High Volume Specialties and other new products
Strong Cost Position from Strategic Location
Our refineries and plants are located in the Map Ta Phut Industrial Estate, Thailand’s major petrochemical production area. This strategic location provides key competitive advantages as it puts us in close proximity with a number of our key suppliers and customers. This allows us to minimize feedstock and product transportation costs, enabling us to receive feedstock, convert them into end products and deliver products to our customers in a timely and cost-effective manner.
Highly Experienced Management Team
Our senior management team is highly experienced and has a proven track record in the refinery and petrochemical related industries.