The government and plastics producers will file a case to the World Trade Organisation complaining of an unfair investigation and imposition by Indonesia of a high anti-dumping duty on Thai-made BOPP plastic film.
The Indonesian government had already imposed a provisional anti-dumping duty on Thai BOPP (biaxially oriented polypropylene) products of 21.86 per cent from May 8 to September 8 - against the normal duty rate of 5 per cent - citing that the products were being dumped and were therefore damaging its local industry.
It is now imposing an effective anti-dumping duty of 21.86 per cent on Thai BOPP film from today, with the new rate scheduled to be in place for five years.
Thai BOPP film exports to Indonesia plunged by 62 per cent to Bt355 million during the four months of the provisional anti-dumping duty.
Komite Anti Dumping Indonesia (KADI) has unfairly investigated the Thai plastic products, as the organisation has not probed BOPP products from China, which is another major exporter to Indonesia, Nilsuwan Leelarasamee, secretary to the Federation of Thai Industries (FTI), said yesterday.
He said the FTI and the Foreign Trade Department would soon file a petition to the WTO alleging an unfair ruling by the Indonesian government.
"The Indonesian government has unjustly investigated and imposed an anti-dumping duty on Thai BOPP film. As Indonesian companies have been taken over by Chinese plastics firms, its government has not investigated China's BOPP film exports to Indonesia," said Nilsuwan.
To impose a fair anti-dumping duty, Jakarta must also include the export value from China, he added, but only Thai BOPP film faced a provisional - and now full - anti-dumping duty. According to the FTI, the unfairly imposed duty will create a loss of Bt1.2 billion for Thai BOPP film exports per year.
Wednesday, September 30, 2009
Map Ta Phut ruling hits SET
Share prices of companies in the networks of PTT Plc and Siam Cement Group fell in a range of 1% to 7% during trading yesterday as the country's leading industrial conglomerates faced a new blow over unsettled pollution problems at Map Ta Phut.
Among the 76 projects worth 400 billion baht ordered to halt construction by the Administrative Court on Tuesday,25 are being developed by subsidiaries and affiliates of PTT, said PTT chief financial officer Tevin Vongvanich.
These ongoing projects include a sixth gas separation plant, due to be operational by the end of this year,petrochemical plants, and an upgraded refinery to meet Euro 4 emission standards.
The court ordered the suspension of operating permits for new investments in Map Ta Phut Industrial Estate in Rayong, following an outcry from environmental activists and residents who claim the permits violated Section 67 of the 2007 Constitution.
"The (temporary) suspension of these projects will affect our trading and contract partners, financial institutions, and related industries across the supply chain. Moreover, it will put at risk over 100,000 jobs, including hiring in [Map Ta Phut]," Mr Tevin said.
"We are planning to hold talks with concerned government agencies to seek ways to soften the impact from the court's ruling, or we may lodge an appeal."
Siam Cement said the court order would force its wholly owned subsidiary,SCG Chemicals, to halt nearly completed construction of its upstream naphtha cracker, as well as projects of its downstream subsidiaries and joint-venture units, expected to be completed between late 2009 to mid-2011.
"In this regard, SCC will be working closely with all relevant government authorities to jointly conclude a solution for all concerned parties, while minimising any effect on SCG Chemicals'investment projects," president and chief executive Kan Trakulhoon said in a statement to the Stock Exchange of Thailand yesterday.
Also affected is SET-listed Glow Energy, whose 660-megawatt power plant is likely to be postponed.
Kim Eng Securities said the court was expected to review the case immediately when an appeal is lodged.
"This issue cannot drag on for long because it will affect the sentiment of the stock market in general," said a Kim Eng spokesman.
However, Bualuang Securities said the court ruling was unlikely to push the overall index down even though it caused a sudden shock.
"This news represents a negative
surprise and is certainly a near-term headwind against the stock of any company with facilities in or near Map Ta Phut," Bualuang said.
Surong Bualakula, senior executive vice-president for the international business unit of PTT, said Thailand's competitiveness had been crimped by the Map Ta Phut case.
The development could prompt PTT to look at neighbouring countries such as Cambodia, which has larger natural gas and oil reserves, as well as a pipeline network. The Cambodian government is considering a plan to build an energy complex in Sihanoukville, he said.
"Map Ta Phut is the centre of Thailand's industrial development region with a competitive advantage in the gas-based petrochemical industry," Mr Surong said."What downstream manufacturers or automakers will invest in Thailand now because they cannot be sure if they will have enough raw materials in the future?"
Shares of Siam Cement (SCC) closed yesterday at 222 baht, down 5 baht, in trade worth 1.11 billion. PTT shares rose 3 baht, but PTTAR fell 1.10 baht to 24.40 in trade worth 1.7 billion while PTTCH fell 4 baht to 73.25 in trade worth 844 million. GLOW fell 1.75 baht to 32.75 in trade worth 135 million.
Among the 76 projects worth 400 billion baht ordered to halt construction by the Administrative Court on Tuesday,25 are being developed by subsidiaries and affiliates of PTT, said PTT chief financial officer Tevin Vongvanich.
These ongoing projects include a sixth gas separation plant, due to be operational by the end of this year,petrochemical plants, and an upgraded refinery to meet Euro 4 emission standards.
The court ordered the suspension of operating permits for new investments in Map Ta Phut Industrial Estate in Rayong, following an outcry from environmental activists and residents who claim the permits violated Section 67 of the 2007 Constitution.
"The (temporary) suspension of these projects will affect our trading and contract partners, financial institutions, and related industries across the supply chain. Moreover, it will put at risk over 100,000 jobs, including hiring in [Map Ta Phut]," Mr Tevin said.
"We are planning to hold talks with concerned government agencies to seek ways to soften the impact from the court's ruling, or we may lodge an appeal."
Siam Cement said the court order would force its wholly owned subsidiary,SCG Chemicals, to halt nearly completed construction of its upstream naphtha cracker, as well as projects of its downstream subsidiaries and joint-venture units, expected to be completed between late 2009 to mid-2011.
"In this regard, SCC will be working closely with all relevant government authorities to jointly conclude a solution for all concerned parties, while minimising any effect on SCG Chemicals'investment projects," president and chief executive Kan Trakulhoon said in a statement to the Stock Exchange of Thailand yesterday.
Also affected is SET-listed Glow Energy, whose 660-megawatt power plant is likely to be postponed.
Kim Eng Securities said the court was expected to review the case immediately when an appeal is lodged.
"This issue cannot drag on for long because it will affect the sentiment of the stock market in general," said a Kim Eng spokesman.
However, Bualuang Securities said the court ruling was unlikely to push the overall index down even though it caused a sudden shock.
"This news represents a negative
surprise and is certainly a near-term headwind against the stock of any company with facilities in or near Map Ta Phut," Bualuang said.
Surong Bualakula, senior executive vice-president for the international business unit of PTT, said Thailand's competitiveness had been crimped by the Map Ta Phut case.
The development could prompt PTT to look at neighbouring countries such as Cambodia, which has larger natural gas and oil reserves, as well as a pipeline network. The Cambodian government is considering a plan to build an energy complex in Sihanoukville, he said.
"Map Ta Phut is the centre of Thailand's industrial development region with a competitive advantage in the gas-based petrochemical industry," Mr Surong said."What downstream manufacturers or automakers will invest in Thailand now because they cannot be sure if they will have enough raw materials in the future?"
Shares of Siam Cement (SCC) closed yesterday at 222 baht, down 5 baht, in trade worth 1.11 billion. PTT shares rose 3 baht, but PTTAR fell 1.10 baht to 24.40 in trade worth 1.7 billion while PTTCH fell 4 baht to 73.25 in trade worth 844 million. GLOW fell 1.75 baht to 32.75 in trade worth 135 million.
BANGKOK KBANK HELPS PTTPM BOOST ASIA EXPOSURE
PTT Polymer Marketing (PTTPM), a petrochemicals marketing arm of the PTT Group, is going ahead with its plan to achieve Bt100 billion in annual earnings by 2015 through a financial agreement with Bangkok Bank.
The deal, which was signed yesterday, binds BBL to provide financial and business support to PTTPM customers and dealers across Asia.
"Customers and dealers in other parts of Asia can take advantage of this service, which will provide them with the liquidity they need to expand their sales of PTTPM products. This way, we can support PTTPM as it expands outside Thailand," BBL president Chartsiri Sophonpanich explained.
Earlier, the bank had agreed to provide supply chain financing to PTTPM dealers within Thailand.
Under the newest deal, customers and dealers will be given improved access to liquidity, a reduction in delivery time as well as lower fees. No letter of credit would be required and customers can choose to do their transactions in any currency, which would make the process even more efficient.
PTTPM's marketing director Pramin Phantawesak said the company aims to raise its annual sales to Bt100 billion and hopes to become an international polymer trading house by 2015. PTTPM recently established representative offices in several Asian countries including Vietnam and China, as well as a sub-branch in Dubai. Bangkok Bank's branches in Thailand and overseas will help PTTPM achieve its growth target.
To maintain a robust growth of its business, the company had earlier cooperated with Kasikornbank to develop what it claims is the world's first electronic letter-of-credit system, providing greater convenience and accuracy for customers. Through BBL's Bualuang iSupply system, dealers can access online dealer payments and financial service.
PTTPM senior manager Narongchai Pisutpunya said earlier the electronic system would enhance productivity in these areas by up to six times and reduce operating costs by Bt25 million per year.
The deal, which was signed yesterday, binds BBL to provide financial and business support to PTTPM customers and dealers across Asia.
"Customers and dealers in other parts of Asia can take advantage of this service, which will provide them with the liquidity they need to expand their sales of PTTPM products. This way, we can support PTTPM as it expands outside Thailand," BBL president Chartsiri Sophonpanich explained.
Earlier, the bank had agreed to provide supply chain financing to PTTPM dealers within Thailand.
Under the newest deal, customers and dealers will be given improved access to liquidity, a reduction in delivery time as well as lower fees. No letter of credit would be required and customers can choose to do their transactions in any currency, which would make the process even more efficient.
PTTPM's marketing director Pramin Phantawesak said the company aims to raise its annual sales to Bt100 billion and hopes to become an international polymer trading house by 2015. PTTPM recently established representative offices in several Asian countries including Vietnam and China, as well as a sub-branch in Dubai. Bangkok Bank's branches in Thailand and overseas will help PTTPM achieve its growth target.
To maintain a robust growth of its business, the company had earlier cooperated with Kasikornbank to develop what it claims is the world's first electronic letter-of-credit system, providing greater convenience and accuracy for customers. Through BBL's Bualuang iSupply system, dealers can access online dealer payments and financial service.
PTTPM senior manager Narongchai Pisutpunya said earlier the electronic system would enhance productivity in these areas by up to six times and reduce operating costs by Bt25 million per year.
Sunday, September 27, 2009
VNT plans new plant worth B8bn
The SET-listed vinyl and chlor-alkali producer Vinythai Plc (VNT) will invest 8 billion baht to build a epichlorohydrin plant in Rayong following its acquisition of Solvay Biochemical Thailand Co (SBT).
The company's board has approved the buyout of SBT, the Thai unit of the Belgium-based Solvay group, in a deal worth 360 million baht, said Varaiporn Piphitpattanaprapt, vice-president for finance and accounting.
The acquisition would strengthen Vinythai's position in the business of environmentally friendly chemical compounds, she said.
The epichlorohydrin project was formerly planned by SBT but little work had been done. Vinythai will take over the project and build the new plant at its existing site. The 8 billion baht would cover production of epichlorohydrin and expansion of Vinylthai's hydrogen chloride and caustic soda capacity to ensure sufficient supplies of raw materials to the epichlorohydrin plant.
The main feedstock for epichlorohydrin production will be glycerin derived from the production of biofuels such as palm oil and other vegetable oils.
Ms Varaiporn said the new plant was scheduled to be operational in the first quarter of 2012, with an annual production capacity of 100,000 tonnes.
Demand is growing rapidly in AsiaPacific for epichlorohydrin, an essential feedstock for epoxy resins used in such applications as corrosion protection coatings, as well as the electronics, automotive, aerospace and power-generating windmill industries.
Vinythai views that the new project based on environmentally sustainable technology will raise its competitive advantage and enable the company to become a key player in the Asia-Pacific region in Epichlorohydrin business.
"The project will also diversify Vinythai's product range and add significant value to the company," she noted.
The investment is subject to approval from relevant governmental authorities and shareholders.
Solvay Chemicals and Plastics Holding B.V. is among the major shareholders of Vinythai with ownership of 49.99%, along with PTT Chemical Plc (24.98%), and Charoen Pokphand Group (11.87%).
VNT shares closed yesterday on the SET at 6.80 baht, up 10 satang.
The company's board has approved the buyout of SBT, the Thai unit of the Belgium-based Solvay group, in a deal worth 360 million baht, said Varaiporn Piphitpattanaprapt, vice-president for finance and accounting.
The acquisition would strengthen Vinythai's position in the business of environmentally friendly chemical compounds, she said.
The epichlorohydrin project was formerly planned by SBT but little work had been done. Vinythai will take over the project and build the new plant at its existing site. The 8 billion baht would cover production of epichlorohydrin and expansion of Vinylthai's hydrogen chloride and caustic soda capacity to ensure sufficient supplies of raw materials to the epichlorohydrin plant.
The main feedstock for epichlorohydrin production will be glycerin derived from the production of biofuels such as palm oil and other vegetable oils.
Ms Varaiporn said the new plant was scheduled to be operational in the first quarter of 2012, with an annual production capacity of 100,000 tonnes.
Demand is growing rapidly in AsiaPacific for epichlorohydrin, an essential feedstock for epoxy resins used in such applications as corrosion protection coatings, as well as the electronics, automotive, aerospace and power-generating windmill industries.
Vinythai views that the new project based on environmentally sustainable technology will raise its competitive advantage and enable the company to become a key player in the Asia-Pacific region in Epichlorohydrin business.
"The project will also diversify Vinythai's product range and add significant value to the company," she noted.
The investment is subject to approval from relevant governmental authorities and shareholders.
Solvay Chemicals and Plastics Holding B.V. is among the major shareholders of Vinythai with ownership of 49.99%, along with PTT Chemical Plc (24.98%), and Charoen Pokphand Group (11.87%).
VNT shares closed yesterday on the SET at 6.80 baht, up 10 satang.
VINYTHAI TO BUY SOLVAY THAI UNIT IN EPI PRODUCTION EXPANSION
Vinythai has earmarked Bt8 billion to expand production of epichlorohydrin (EPI)
Of tha,t Bt5.75 billion will be used to acquire Solvay Biochemicals (Thailand), a manufacturer of EPI and other chemical and plastic products.
Solvay, an international chemical and pharmaceutical company headquartered in Brussels, is a shareholder in both companies. It has operations worldwide, with annual revenus of US$9.2 billion (Bt309 billion)
In a filing with the Stock Exchange of Thailand, Vinythai said its board had approved the acquisition of the unit from Solvay Chemicals and Plastics Holding and the Solvay Group. Vinythathai said its board had approved the acquisiton of the unit from Solvay Chemicals and Plastics Holding and the Solvay Group. Vinythai will use the Solvay's Epicerol process, which can produce 100,000 tonnes of EPI a year.
The EPI project will be managed by a new subsidiary to be set up after Vinythai finishes acquiring Solvay Biochemicals (Thailand), the company said in the statement.
Under the capacity-increase plan, the compamy's board approved expenditure of Bt 2.25 billion to increase annual production fo chlorine by 90,000 tonnes and caustic soda by 100,00 tonnes, in order to support the EPI project.
Vinythai expects a rate of return of 15 per cent on the project. The company sees this investment as a way of redcuing the cyclical effects in the petrochemical industry, especially the PVC business.
Twenty per cent of the output will be sold domestically and the rest exported. Vinythai will finance the project with cash flow and bank loans.
Vinythai is now awaiting Board of the project.
The company's board approved expenditure of Bt2.25 billion to increase annual production of chlorine by 90,000 tonnes and caustic soda by 100,000 tonnes, in order to support the EPI project.
Of tha,t Bt5.75 billion will be used to acquire Solvay Biochemicals (Thailand), a manufacturer of EPI and other chemical and plastic products.
Solvay, an international chemical and pharmaceutical company headquartered in Brussels, is a shareholder in both companies. It has operations worldwide, with annual revenus of US$9.2 billion (Bt309 billion)
In a filing with the Stock Exchange of Thailand, Vinythai said its board had approved the acquisition of the unit from Solvay Chemicals and Plastics Holding and the Solvay Group. Vinythathai said its board had approved the acquisiton of the unit from Solvay Chemicals and Plastics Holding and the Solvay Group. Vinythai will use the Solvay's Epicerol process, which can produce 100,000 tonnes of EPI a year.
The EPI project will be managed by a new subsidiary to be set up after Vinythai finishes acquiring Solvay Biochemicals (Thailand), the company said in the statement.
Under the capacity-increase plan, the compamy's board approved expenditure of Bt 2.25 billion to increase annual production fo chlorine by 90,000 tonnes and caustic soda by 100,00 tonnes, in order to support the EPI project.
Vinythai expects a rate of return of 15 per cent on the project. The company sees this investment as a way of redcuing the cyclical effects in the petrochemical industry, especially the PVC business.
Twenty per cent of the output will be sold domestically and the rest exported. Vinythai will finance the project with cash flow and bank loans.
Vinythai is now awaiting Board of the project.
The company's board approved expenditure of Bt2.25 billion to increase annual production of chlorine by 90,000 tonnes and caustic soda by 100,000 tonnes, in order to support the EPI project.
"FORBES ASIA" SHOWS WEALTHIEST THAIS HAVE WEATHERED THE STORM
Thailand's wealthiest appear to have been quite resilient to the global economic downturn and political instability as beverage tycoon Chaleo Yoovidhya gets named the Kingdom's richest person for the third consecutive year, while millionaires in the food and agriculture businesses also enjoy boosts in their net worth.
The latest Forbes Asia's Thailand Rich list showed that the combined wealth of Thailand's 40 richest people remained unchanged at US$25 billion (Bt838.92 billion), with the net worth of 77-year old Chaleo, who co-founded Red Bull, also stayed flat at $4 billion.
The second man on the list was Dhanin Chearavanont, head of the agribusiness conglomerate Charoen Pokphand Group, one of the world's biggest feed and poultry companies. Dhanin, who moved up the ranking by two notches, is also the biggest gainer in dollar terms - his net worth rose by $1 billion to $3 billion.
Other tycoons in the food and agriculture businesses also enjoyed a boost in their net worth. Among them are sugar barons - Mitr Phol Sugar's Isara Vongkusolkit (eighth with $900 million) and Khon Kaen Sugar Industry's Nantha Chinthammit (18th with $360 million) - as well as seafood tycoon Kraisorn Chansiri (28th with $175 million).
Bucking the trend, however, was Charoen Sirivadhanabhakdi of Thai Beverage, whose net worth fell to $2.8 billion from $3.9 billion last year. Ranked fourth on the list, he also suffered the largest decline among his fellow tycoons.
The third richest in Thailand are descendants of the founder of Central Group, Tiang Chirathivat, including families of his three wives and 25 children. Their combined wealth rose by $100 million to $2.9 billion. Their shared net worth is largely derived from their ownership of Central Retail and their 60 per cent stake in listed developer, Central Pattana.
Still firmly in the limelight is Thaksin Shinawatra, who is the 16th richest with a net worth of $390 million, down from $400 million last year. The fugitive former PM is the 19th on the list who saw their net worth drop this year.
Also poorer is hospitality tycoon William E Heinecke who dropped five places to No 20 as his wealth of $350 million dropped by $110 million this year. Political turmoil and the global recession seem to have taken their toll on his business empire and personal net worth, but the irrepressible optimist moves on.
"You learn through every crisis, every challenge," Heinecke said in the latest issue of Forbes Asia.
This year's list has four new faces led by long-time Thai resident Aloke Lohia, who has the highest ranking at 19th with a net worth of $355 million. The 50-year old tycoon started Indorama Polymers, which earned $1.2 billion in sales last year.
Other newcomers include Worawit Weeraborwornpong of Siamgas and Petrochemicals (30th with $165 million) and lingerie magnate Virot Thanalongkorn (35th with $130 million). Both made their companies public last year before the markets tanked.
The fourth newcomer is Pongsak Viddayakorn, board member of Bangkok Dusit Medical Services, who was ranked 36th with $125 million.
When compiling the list, public assets were calculated using share prices and exchange rates as of September 10. For privately held wealth, Forbes Asia estimated what they would be worth using information from the Commerce Ministry and other sources. This ranking, unlike the Forbes' billionaires list includes family holdings shared by individuals and their children, grandchildren and siblings.
The latest Forbes Asia's Thailand Rich list showed that the combined wealth of Thailand's 40 richest people remained unchanged at US$25 billion (Bt838.92 billion), with the net worth of 77-year old Chaleo, who co-founded Red Bull, also stayed flat at $4 billion.
The second man on the list was Dhanin Chearavanont, head of the agribusiness conglomerate Charoen Pokphand Group, one of the world's biggest feed and poultry companies. Dhanin, who moved up the ranking by two notches, is also the biggest gainer in dollar terms - his net worth rose by $1 billion to $3 billion.
Other tycoons in the food and agriculture businesses also enjoyed a boost in their net worth. Among them are sugar barons - Mitr Phol Sugar's Isara Vongkusolkit (eighth with $900 million) and Khon Kaen Sugar Industry's Nantha Chinthammit (18th with $360 million) - as well as seafood tycoon Kraisorn Chansiri (28th with $175 million).
Bucking the trend, however, was Charoen Sirivadhanabhakdi of Thai Beverage, whose net worth fell to $2.8 billion from $3.9 billion last year. Ranked fourth on the list, he also suffered the largest decline among his fellow tycoons.
The third richest in Thailand are descendants of the founder of Central Group, Tiang Chirathivat, including families of his three wives and 25 children. Their combined wealth rose by $100 million to $2.9 billion. Their shared net worth is largely derived from their ownership of Central Retail and their 60 per cent stake in listed developer, Central Pattana.
Still firmly in the limelight is Thaksin Shinawatra, who is the 16th richest with a net worth of $390 million, down from $400 million last year. The fugitive former PM is the 19th on the list who saw their net worth drop this year.
Also poorer is hospitality tycoon William E Heinecke who dropped five places to No 20 as his wealth of $350 million dropped by $110 million this year. Political turmoil and the global recession seem to have taken their toll on his business empire and personal net worth, but the irrepressible optimist moves on.
"You learn through every crisis, every challenge," Heinecke said in the latest issue of Forbes Asia.
This year's list has four new faces led by long-time Thai resident Aloke Lohia, who has the highest ranking at 19th with a net worth of $355 million. The 50-year old tycoon started Indorama Polymers, which earned $1.2 billion in sales last year.
Other newcomers include Worawit Weeraborwornpong of Siamgas and Petrochemicals (30th with $165 million) and lingerie magnate Virot Thanalongkorn (35th with $130 million). Both made their companies public last year before the markets tanked.
The fourth newcomer is Pongsak Viddayakorn, board member of Bangkok Dusit Medical Services, who was ranked 36th with $125 million.
When compiling the list, public assets were calculated using share prices and exchange rates as of September 10. For privately held wealth, Forbes Asia estimated what they would be worth using information from the Commerce Ministry and other sources. This ranking, unlike the Forbes' billionaires list includes family holdings shared by individuals and their children, grandchildren and siblings.
Thursday, September 24, 2009
IRPC, PTTAR IN JOINT UPGRADE OF REFINERY TO MEET EURO 4
Local integrated oil and petrochemical producer IRPC will co-invest with PTT Aromatics and Refining to upgrade the latter's refinery to meet the Euro 4 standards.
The new standards will be implemented by the beginning of 2012.
"We'll swap oil products among the subsidiaries of the PTT Group and co-invest in the upgrading project of PTTAR's oil refinery. We've not yet finalised the form of the co-investment, but we are expected to make a minor investment in this project," said IRPC chief executive Pailin Chuchottaworn.
He declined to disclose the exact investment budget for the project.
Pailin said it would not be worth it to upgrade all of the facilities to meet Euro 4 standards, because then the remaining premium oil output, which would also be produced at high cost, would only be sent to other countries.
Thai Oil and Bangchak have already upgraded their facilities to comply with Euro 4 standards.
Meanwhile, IRPC has targeted revenue of Bt180 billion this year, down from Bt245 billion last year, due mainly to lower prices for oil and petrochemical products.
Seventy per cent of revenue will come from oil refining and the rest from petrochemicals.
Pailin said the third quarter would be better for the company than the second quarter, thanks to rising prices of oil and petrochemical goods.
He said the price of plastic pellets was about US$1,200 (Bt40,300) per tonne, up 20 per cent from the average in 2008, when oil and petrochemical prices fluctuated wildly.
He said the price for plastic pellets could remain at the $1,200 level next year.
"The price may tend to soften, due to greater supply from new production plants in the Middle East. But there's a chance demand will spike from the Shanghai Expo and the Asian Games in China," he said.
IRPC yesterday introduced an electronic transaction system, in cooperation with Kasikornbank, to boost customer satisfaction and the efficiency of its plastic trading system, since it exports to more than 100 countries.
He said the company was trying to improve its office system, which would play a significant role in enhancing business performance and helping achieve the goal of being in the top 25 per cent of Asian petrochemical complexes by 2014.
The new system will reduce operation costs by Bt30 million per year, he said.
The new standards will be implemented by the beginning of 2012.
"We'll swap oil products among the subsidiaries of the PTT Group and co-invest in the upgrading project of PTTAR's oil refinery. We've not yet finalised the form of the co-investment, but we are expected to make a minor investment in this project," said IRPC chief executive Pailin Chuchottaworn.
He declined to disclose the exact investment budget for the project.
Pailin said it would not be worth it to upgrade all of the facilities to meet Euro 4 standards, because then the remaining premium oil output, which would also be produced at high cost, would only be sent to other countries.
Thai Oil and Bangchak have already upgraded their facilities to comply with Euro 4 standards.
Meanwhile, IRPC has targeted revenue of Bt180 billion this year, down from Bt245 billion last year, due mainly to lower prices for oil and petrochemical products.
Seventy per cent of revenue will come from oil refining and the rest from petrochemicals.
Pailin said the third quarter would be better for the company than the second quarter, thanks to rising prices of oil and petrochemical goods.
He said the price of plastic pellets was about US$1,200 (Bt40,300) per tonne, up 20 per cent from the average in 2008, when oil and petrochemical prices fluctuated wildly.
He said the price for plastic pellets could remain at the $1,200 level next year.
"The price may tend to soften, due to greater supply from new production plants in the Middle East. But there's a chance demand will spike from the Shanghai Expo and the Asian Games in China," he said.
IRPC yesterday introduced an electronic transaction system, in cooperation with Kasikornbank, to boost customer satisfaction and the efficiency of its plastic trading system, since it exports to more than 100 countries.
He said the company was trying to improve its office system, which would play a significant role in enhancing business performance and helping achieve the goal of being in the top 25 per cent of Asian petrochemical complexes by 2014.
The new system will reduce operation costs by Bt30 million per year, he said.
IRPC to beat goal with B180bn sales
SET-listed IRPC Plc expects to beat its previous target for the year and top 180 billion baht in revenue due to strong petrochemical demand from China.
The country's leading petrochemical manufacturer and oil refiner now predicts its revenue will drop by 26% this year from the 244.7 billion baht earned in 2008.
But the company has performed much better in the current quarter as plastic resin is now priced at US$1,200 per tonne, up from $1,000 earlier, chief executive Pailin Chuchottaworn said yesterday.
"Our performance is obviously good in the current quarter and better than the second quarter. The business outlook is now brighter than what we saw earlier," said Dr Pailin.
IRPC, which is 37% owned by PTT Plc, now projects revenue of 180 billion baht this year based on oil at about $70 per barrel. In the quarter to June,the company posted a net profit of 2.42 billion baht, down from 5.12 billion in the same period last year, in line with a decline in revenue of 45% to 40.3 billion baht.
The petrochemical business will account for about 54 billion baht of this year's estimated revenue. The figure is expected to be maintained in 2010.
"Plastic prices will stay at $1,200 per tonne at best next year. The demand from China will remain strong but the outlook remains uncertain, depending largely on additional petrochemical capacities to come on stream next year,"he said.
IRPC is now utilising 75% of its refining capacity of 215,000 barrels per day.
The petrochemical spread has improved slightly in the current quarter from the previous quarter, while the refining margin has weakened marginally. The company's gross integrated margin is in double digits, said Banlue Chantadisai, senior executive vicepresident for corporate accounting and finance.
Average refining capacity is expected to stay at about 150,000 to 160,000 barrels per day in 2009, compared with 180,000 barrels last year. The existing output is enough to serve IRPC's petrochemical business.
Executives also said that IRPC was likely to go for a product swap option with PTT Aromatics and Refinery Plc,another PTT petrochemical and refining unit, to upgrade its refineries to meet the Euro 4 emissions standard.
The Euro 4 project is part of IRPC's $1.2 billion five-year investment plan to become a top integrated petrochemical producer in Asia by 2014.
PTT Plc, Thailand's largest energy company, has studied a merger of its petrochemical and refining affiliates including IRPC and PTTAR. The plan is expected to be finalised next month.
IRPC yesterday launched its "Ideal Solution" service to enable petrochemical trading transactions on personal digital assistants (PDA) worldwide. The system will help reduce operational costs by 30 million baht per year.
Shares of IRPC closed yesterday on the Stock Exchange of Thailand at 4.48 baht, down six satang, in trade worth 1.69 billion baht.
The country's leading petrochemical manufacturer and oil refiner now predicts its revenue will drop by 26% this year from the 244.7 billion baht earned in 2008.
But the company has performed much better in the current quarter as plastic resin is now priced at US$1,200 per tonne, up from $1,000 earlier, chief executive Pailin Chuchottaworn said yesterday.
"Our performance is obviously good in the current quarter and better than the second quarter. The business outlook is now brighter than what we saw earlier," said Dr Pailin.
IRPC, which is 37% owned by PTT Plc, now projects revenue of 180 billion baht this year based on oil at about $70 per barrel. In the quarter to June,the company posted a net profit of 2.42 billion baht, down from 5.12 billion in the same period last year, in line with a decline in revenue of 45% to 40.3 billion baht.
The petrochemical business will account for about 54 billion baht of this year's estimated revenue. The figure is expected to be maintained in 2010.
"Plastic prices will stay at $1,200 per tonne at best next year. The demand from China will remain strong but the outlook remains uncertain, depending largely on additional petrochemical capacities to come on stream next year,"he said.
IRPC is now utilising 75% of its refining capacity of 215,000 barrels per day.
The petrochemical spread has improved slightly in the current quarter from the previous quarter, while the refining margin has weakened marginally. The company's gross integrated margin is in double digits, said Banlue Chantadisai, senior executive vicepresident for corporate accounting and finance.
Average refining capacity is expected to stay at about 150,000 to 160,000 barrels per day in 2009, compared with 180,000 barrels last year. The existing output is enough to serve IRPC's petrochemical business.
Executives also said that IRPC was likely to go for a product swap option with PTT Aromatics and Refinery Plc,another PTT petrochemical and refining unit, to upgrade its refineries to meet the Euro 4 emissions standard.
The Euro 4 project is part of IRPC's $1.2 billion five-year investment plan to become a top integrated petrochemical producer in Asia by 2014.
PTT Plc, Thailand's largest energy company, has studied a merger of its petrochemical and refining affiliates including IRPC and PTTAR. The plan is expected to be finalised next month.
IRPC yesterday launched its "Ideal Solution" service to enable petrochemical trading transactions on personal digital assistants (PDA) worldwide. The system will help reduce operational costs by 30 million baht per year.
Shares of IRPC closed yesterday on the Stock Exchange of Thailand at 4.48 baht, down six satang, in trade worth 1.69 billion baht.
Wednesday, September 23, 2009
BASF BUILDS CENTRE TO HELP KARENS
BASF, a global chemical company, will provide Bt3.7 million to the Karen Kids Society to construct a youth centre for young adults in Ban Pa Deng, Petchaburi province.
The contribution, provided via the BASF Social Foundation, is aimed at improving the standard of living of local residents.
The Karen Kids Youth Centre will provide educational opportunities for young adults from the ethnic minority along with Thai residents, focusing on income generating activities such as handicraft skills.
The centre will also provide separate living and sanitation facilities. The construction of the 390-square-metre centre began last month and should be completed by the middle of next year.
Karen Kids Society president and founder Juergen Strafe said: "When we first discovered the children, they were living in a rat- and insect-infested hovel with a leaking roof.
"The dirt and smell were unimaginable. Today, they enjoy clean, healthy accommodation, with proper sanitation, freshly laundered bedding and a hygienic kitchen.
"The next step is to build a youth centre where older kids can learn a trade. Within a few years, they will be able to leave the camp and make a life for themselves using these new skills."
To Pracha Chivaporntip, chairman and managing director of the BASF Group in Thailand, the project in Ban Pa Deng is one of many the company has sponsored over the years as part of its sustainable development efforts.
With its existing education centre, Karen Kids provides shelter, education, clothing and food to more than 80 children aged 10 months to 14 years now living as displaced persons.
With a three-pronged plan focusing on education, health and self-reliance, the centre provides a place to meet, play, and study.
It also provides "child safe" Internet access. Each Saturday, the camp offers Thai-and English-language classes for children and adults.
A vaccination schedule is maintained, and children will be taught ways to improve their immune system.
A weaving programme, vegetable garden and a fishpond.
The first phase of the construction, together with a sleeping area for volunteers and camp managers, was completed last year.
Its second phase, with a two storey centre, will include training facilities for sewing, weaving and carpentry.
The contribution, provided via the BASF Social Foundation, is aimed at improving the standard of living of local residents.
The Karen Kids Youth Centre will provide educational opportunities for young adults from the ethnic minority along with Thai residents, focusing on income generating activities such as handicraft skills.
The centre will also provide separate living and sanitation facilities. The construction of the 390-square-metre centre began last month and should be completed by the middle of next year.
Karen Kids Society president and founder Juergen Strafe said: "When we first discovered the children, they were living in a rat- and insect-infested hovel with a leaking roof.
"The dirt and smell were unimaginable. Today, they enjoy clean, healthy accommodation, with proper sanitation, freshly laundered bedding and a hygienic kitchen.
"The next step is to build a youth centre where older kids can learn a trade. Within a few years, they will be able to leave the camp and make a life for themselves using these new skills."
To Pracha Chivaporntip, chairman and managing director of the BASF Group in Thailand, the project in Ban Pa Deng is one of many the company has sponsored over the years as part of its sustainable development efforts.
With its existing education centre, Karen Kids provides shelter, education, clothing and food to more than 80 children aged 10 months to 14 years now living as displaced persons.
With a three-pronged plan focusing on education, health and self-reliance, the centre provides a place to meet, play, and study.
It also provides "child safe" Internet access. Each Saturday, the camp offers Thai-and English-language classes for children and adults.
A vaccination schedule is maintained, and children will be taught ways to improve their immune system.
A weaving programme, vegetable garden and a fishpond.
The first phase of the construction, together with a sleeping area for volunteers and camp managers, was completed last year.
Its second phase, with a two storey centre, will include training facilities for sewing, weaving and carpentry.
EXCLUSIVE INTERVIEW: MELAMINE GIANT'S PASSAGE TO INDIA
Srithai Superware, the world's largest manufacturer of melamine tableware, plans to invest Bt200 million in its first melamine factory in New Delhi and will be pondering investments in other Indian cities such as Mumbai and Chennai.
"We see India as a potential market enjoying strong growth. Setting up the melamine factory in New Delhi will help us expand our distribution more easily," Sanan Angubolkul, the company's chairman, said.
"We expect to open at least four factories for melamine and other plastic products in India over the next 10 years," he added.
He told The Nation that the firm had recently opened its first trading office in New Delhi, which would be responsible for selling the products via direct-selling channels. The first lot of melamine products has already been shipped to New Delhi and will officially enter the market next month through a direct-selling network.
Srithai has been exporting melamine tableware to India for nearly three decades now through local importers and wholesalers, but this is the first time that it is directly penetrating the market.
The factory in New Delhi scheduled to open next year will produce 100 tonnes of melamine products per annum. Srithai owns 70 per cent of the business and local agents hold the rest.
Srithai has been operating a plastic factory in Vietnam's Ho Chi Minh City for nearly 13 years now, and the plant started producing melamine last year.
"We have big expansion plans for our manufacturing facilities for melamine and plastic products in both India and Vietnam, where we hold majority shares in the factories. In Ho Chi Minh, we own about 95 per cent of the stake," Sanan said.
He added that Srithai currently exported melamine products to more than 100 markets around the world and aims to become a world-class manufacturer for plastic products and top five plastic producers in Asia over the next five years. It also plans to make the most of the Asean free trade agreement, to be signed next year, under which import duty would be reduced to zero next year from the current 10 per cent.
Supporting this move is the new strategic initiative called "Change Management", which has been implemented for a year and a half now, and applied in all major development areas such as technology, productivity and innovation, both at the end product and manufacturing process. It also includes developing its employees into "world citizens".
Srithai's production facility is now 40 per cent automated and will be fully automated in the next five years.
At present, Srithai has four plants in Thailand manufacturing plastic and melamine products on Bangkok's Suksawad Road, Bangpoo Industrial Estate in Samut Prakan, Bangpakong Industrial Estate (Amata City) in Chon Buri and the Suranaree Industrial Estate in Nakhon Ratchasima.
Last year, it invested Bt800 million in upgrading machines to reduce energy consumption as well as installing a robotic system and automatic moulding. About Bt400 million has been set aside for upgrading local plants per annum. Since its earnings before interest, tax, depreciation and amortisation (EBITDA) are about Bt500 million a year, part of it would be used to finance the upgrade, Sanan said.
Srithai expects to achieve Bt5.1 billion in total sales this year, including export, which is a 35 per cent increase from Bt4.9 billion last year.
"We expect to increase our gross margin from last year's 19 per cent year to no less than 21 per cent this year. We also expect our total sales to reach Bt10 billion within the next five years," Sanan added.
"We see India as a potential market enjoying strong growth. Setting up the melamine factory in New Delhi will help us expand our distribution more easily," Sanan Angubolkul, the company's chairman, said.
"We expect to open at least four factories for melamine and other plastic products in India over the next 10 years," he added.
He told The Nation that the firm had recently opened its first trading office in New Delhi, which would be responsible for selling the products via direct-selling channels. The first lot of melamine products has already been shipped to New Delhi and will officially enter the market next month through a direct-selling network.
Srithai has been exporting melamine tableware to India for nearly three decades now through local importers and wholesalers, but this is the first time that it is directly penetrating the market.
The factory in New Delhi scheduled to open next year will produce 100 tonnes of melamine products per annum. Srithai owns 70 per cent of the business and local agents hold the rest.
Srithai has been operating a plastic factory in Vietnam's Ho Chi Minh City for nearly 13 years now, and the plant started producing melamine last year.
"We have big expansion plans for our manufacturing facilities for melamine and plastic products in both India and Vietnam, where we hold majority shares in the factories. In Ho Chi Minh, we own about 95 per cent of the stake," Sanan said.
He added that Srithai currently exported melamine products to more than 100 markets around the world and aims to become a world-class manufacturer for plastic products and top five plastic producers in Asia over the next five years. It also plans to make the most of the Asean free trade agreement, to be signed next year, under which import duty would be reduced to zero next year from the current 10 per cent.
Supporting this move is the new strategic initiative called "Change Management", which has been implemented for a year and a half now, and applied in all major development areas such as technology, productivity and innovation, both at the end product and manufacturing process. It also includes developing its employees into "world citizens".
Srithai's production facility is now 40 per cent automated and will be fully automated in the next five years.
At present, Srithai has four plants in Thailand manufacturing plastic and melamine products on Bangkok's Suksawad Road, Bangpoo Industrial Estate in Samut Prakan, Bangpakong Industrial Estate (Amata City) in Chon Buri and the Suranaree Industrial Estate in Nakhon Ratchasima.
Last year, it invested Bt800 million in upgrading machines to reduce energy consumption as well as installing a robotic system and automatic moulding. About Bt400 million has been set aside for upgrading local plants per annum. Since its earnings before interest, tax, depreciation and amortisation (EBITDA) are about Bt500 million a year, part of it would be used to finance the upgrade, Sanan said.
Srithai expects to achieve Bt5.1 billion in total sales this year, including export, which is a 35 per cent increase from Bt4.9 billion last year.
"We expect to increase our gross margin from last year's 19 per cent year to no less than 21 per cent this year. We also expect our total sales to reach Bt10 billion within the next five years," Sanan added.
Indorama plans delisting
Indorama Polymers, the SET-listed PET resin maker will seek delisting once its Indian-based parent company, Indorama Ventures (IVL), has completed acquiring it through a share swap option.
IVL will make an initial public offering of its new shares, make a tender offer for all shares of IRP held by other shareholders by swapping them with its new shares and subsequently delist IRP from the Stock Exchange of Thailand, according to the company's statement filed with the SET yesterday.
Existing IRP shareholders will become IVL shareholders through the process.
Under the restructuring plan, IVL share price is calculated by dividing the reference IRP share price of 14 baht per share by the swap ratio at one IRP share per 1.23 IVL shares.
For the swap ratio, IVL will calculate the ratio by dividing the reference IRP share price of 14 baht per share by the IPO price with a 3% discount.
The whole process should be finished by the end of October.
IRP now has 1.38 million shares. IVL,its major shareholder with 69.29%, conducts business through petrochemicalmaking subsidiaries.
The company's operations in 13 plants in five countries have increased significantly since 2003.
IRP shareholders will meet on the restructuring plan on Oct 26, with the share register to attend fixed on Oct 5.
Shares of IRP closed on the Stock Exchange of Thailand at 13.40 baht,up 90 satang, in trade worth 249.9 million baht.
IVL will make an initial public offering of its new shares, make a tender offer for all shares of IRP held by other shareholders by swapping them with its new shares and subsequently delist IRP from the Stock Exchange of Thailand, according to the company's statement filed with the SET yesterday.
Existing IRP shareholders will become IVL shareholders through the process.
Under the restructuring plan, IVL share price is calculated by dividing the reference IRP share price of 14 baht per share by the swap ratio at one IRP share per 1.23 IVL shares.
For the swap ratio, IVL will calculate the ratio by dividing the reference IRP share price of 14 baht per share by the IPO price with a 3% discount.
The whole process should be finished by the end of October.
IRP now has 1.38 million shares. IVL,its major shareholder with 69.29%, conducts business through petrochemicalmaking subsidiaries.
The company's operations in 13 plants in five countries have increased significantly since 2003.
IRP shareholders will meet on the restructuring plan on Oct 26, with the share register to attend fixed on Oct 5.
Shares of IRP closed on the Stock Exchange of Thailand at 13.40 baht,up 90 satang, in trade worth 249.9 million baht.
Wednesday, September 16, 2009
Bayer names Dutchman as next CEO
The German chemical and pharmaceutical company Bayer AG announced yesterday that it had tapped Marijn Dekkers to take over as its chief executive in October 2010.
Dekkers,51, who has both Dutch and US citizenship, is currently the head of Waltham, Massachusetts-based laboratory equipment maker Thermo Fisher Scientific Inc.
Current CEO Werner Wenning, who extended his contract by eight months until next September, will step down shortly before his 64th birthday.
The company said Dekkers would join its management board at the beginning of 2010. It said that in a transitional phase he also will be the chief executive of its Bayer HealthCare unit - succeeding Arthur Higgins, who is leaving the company during the first half of 2010"for personal reasons.
Dekkers,51, who has both Dutch and US citizenship, is currently the head of Waltham, Massachusetts-based laboratory equipment maker Thermo Fisher Scientific Inc.
Current CEO Werner Wenning, who extended his contract by eight months until next September, will step down shortly before his 64th birthday.
The company said Dekkers would join its management board at the beginning of 2010. It said that in a transitional phase he also will be the chief executive of its Bayer HealthCare unit - succeeding Arthur Higgins, who is leaving the company during the first half of 2010"for personal reasons.
Monday, September 14, 2009
TPC upbeat on 2010 earnings
Thai Plastic and Chemicals, Southeast Asia's largest PVC maker, said yesterday it was optimistic about 2010 earnings as demand should recover due to government stimulus measures.
It should also expand its capacity once the transfer of some output to a Vietnamese plant is completed.
"We're more confident about 2010,largely because we believe things such as volume and demand will rise after the economy has bottomed out this year,"said managing director Kanet Khaochan.
But the market leader, which is 45%owned by top Thai conglomerate Siam Cement and whose main rivals are unlisted Indonesian firm PT Asahimas Chemical and number-three Vinythai,cannot escape the downturn this year.
It expects lower net profit because product spreads have been squeezed and production has dropped as it moved capacity overseas, Mr Kanet said.
"China is still playing a big part in terms of demand and this is also coupled with governments' spending efforts to stimulate all kinds of business activities,which, of course, are going to need PVC as a key material," he said.
He gave no specific forecast, but five analysts polled by earnings tracker Thomson Reuters I/B/E/S forecast a net profit of 1.9 billion baht in 2010, down 2.8% from the forecast for this year.
"Our business this year hasn't been as bad as we expected, but ... the overall picture is still not going to be able to compete with 2008," he said, referring to last year's 2.2-billion-baht profit.
TPC, which has capacity of 750,000 tonnes a year in plants in Vietnam, Indonesia and Thailand, has been moving capacity of 90,000 tonnes a year to its existing Vietnamese plant, Mr Kanet said.
Once completed, its capacity would approach 850,000 tonnes in 2009. The company expected capacity to reach one million tonnes a year within three to five years, which would put it on track to becoming the world's eighth-largest PVC maker, Mr Kanet said.
In the PVC industry, Shintech of the US, part of the Shin-Etsu group, is the world's largest producer, followed by Taiwan's Formosa Plastics and Belgium's Solvay SA, which has a 50% stake in Vinythai.
The average PVC price in 2009 is expected to be $780 a tonne, down from $1,000 in 2008. By year-end, the price should be about $900, assuming an oil price of around $70 a barrel.
Shares of TPC closed on the Stock Exchange of Thailand at 18 baht yesterday, down 20 satang, in trade worth 8.06 million baht.
It should also expand its capacity once the transfer of some output to a Vietnamese plant is completed.
"We're more confident about 2010,largely because we believe things such as volume and demand will rise after the economy has bottomed out this year,"said managing director Kanet Khaochan.
But the market leader, which is 45%owned by top Thai conglomerate Siam Cement and whose main rivals are unlisted Indonesian firm PT Asahimas Chemical and number-three Vinythai,cannot escape the downturn this year.
It expects lower net profit because product spreads have been squeezed and production has dropped as it moved capacity overseas, Mr Kanet said.
"China is still playing a big part in terms of demand and this is also coupled with governments' spending efforts to stimulate all kinds of business activities,which, of course, are going to need PVC as a key material," he said.
He gave no specific forecast, but five analysts polled by earnings tracker Thomson Reuters I/B/E/S forecast a net profit of 1.9 billion baht in 2010, down 2.8% from the forecast for this year.
"Our business this year hasn't been as bad as we expected, but ... the overall picture is still not going to be able to compete with 2008," he said, referring to last year's 2.2-billion-baht profit.
TPC, which has capacity of 750,000 tonnes a year in plants in Vietnam, Indonesia and Thailand, has been moving capacity of 90,000 tonnes a year to its existing Vietnamese plant, Mr Kanet said.
Once completed, its capacity would approach 850,000 tonnes in 2009. The company expected capacity to reach one million tonnes a year within three to five years, which would put it on track to becoming the world's eighth-largest PVC maker, Mr Kanet said.
In the PVC industry, Shintech of the US, part of the Shin-Etsu group, is the world's largest producer, followed by Taiwan's Formosa Plastics and Belgium's Solvay SA, which has a 50% stake in Vinythai.
The average PVC price in 2009 is expected to be $780 a tonne, down from $1,000 in 2008. By year-end, the price should be about $900, assuming an oil price of around $70 a barrel.
Shares of TPC closed on the Stock Exchange of Thailand at 18 baht yesterday, down 20 satang, in trade worth 8.06 million baht.
Friday, September 11, 2009
HIGHEST CLOSE IN 13 MONTH
Shares yesterday punched through the 700-psychological level to an almost 13-month high, propelled by the insatiable buying spree of foreign investors and the rally in Asian stock markets.The SET Index extended its sixday winning streak by starting the day with a gain before heading further north to close up 1.08 per cent at 703.09 points, off the day's high of 710.62. Turnover was brisk at Bt36.68 billion. The closing level was unseen since August 18 of last year.
PTT and its subsidiaries were at the centre of the rally. PTT advanced 1.54 per cent to Bt264, PTT Exploration and Production (PTTEP) gained 1.03 per cent to Bt147, Thai Oil (TOP) surged 2.17 per cent to Bt47 and PTT Aromatics and Refining (PTTAR) edged up 1.92 per cent to Bt26.50, while IRPC dipped 0.04 per cent to Bt4.28, off the day's peak at Bt4.40.
Mobile phone service providers also climbed up on a report that the telecom regulator will by the end of this year open bids for the 15year licences to provide longdelayed thirdgeneration services.
Advanced Info Service (ADVANC) advanced 3.42 per cent to Bt98.25, Total Access Communication (DTAC) jumped 13.92 per cent to Bt45 and True Corp (TRUE) soared 11.11 per cent to Bt3.20.
Foreign investors bought a net Bt3.8 billion of shares, bringing their total net purchases to Bt42.05 billion since the beginning of this year.
Most other major Asian bourses gained on the day. South Korean shares closed 2.30 per cent higher, the benchmark Nikkei225 index moved up almost 2 per cent, the benchmark Hang Seng Index closed up 1.05 per cent and the Straits Times Index of Singapore added 1.05 per cent.
The Shanghai Composite Index, which covers A and B shares, bucked the buoyant trend, losing 0.73 per cent.
Pongrat Ratanataranananda, vice president at Bualuang Securities, said the continuing fund flow and stabilised oil price kept the Thai stock market - dominated by energy stocks at over 30 per cent of overall market capitalisation - on a upward trend.
The absence of negative factor also boosted the stock market's euphoria.
The upside, however, would be limited following the strong rally over the past six months, she warned.
"The SET Index would reach 720-730 points in technical terms. Our house is upgrading the SET target this year from the previous estimate at 680 points," she said.
Among the securities under PTT's umbrella, she recommends investors snap up PTTEP, as its price has yet to reach a new high, unlike its parent and its associated firms.
Pichai Lertsupongkit, senior vice president of Thanachart Securities, took the same line.
The bullishness would continue, thanks to capital inflows, he said.
He could not estimate the overdue steep correction in the Thai stock market at the moment as investor appetite in risk assets is increasing following the emergence of economic recovery signs.
"It's possible to see the stock market plunge around 40-50 points as it has never consolidated in six months," he said.
Montree Sornpaisarn, CEO of Kim Eng Securities (Thailand), said his research house has upgraded the SET target this year to 750 points from 700.
The heavy trading turnover also indicated higher confidence of investors.
Margin loans extended by the country's largest brokerage by market share have risen significantly to Bt2.3 billion, compared with Bt1.3 billion under normal stock market conditions and Bt900 million during bear markets, he said.
Sukit Udomsirikul, assistant managing director of Siam City Research Institute, said the stock market's trek above the 700 level could be ascribed to capital inflows after the US dollar hit a oneyear low.
In the short run, the stock market's effervescence would be extended within a range of 730-680 points.
The local political situation would be a depressing factor, as the red shirts will hold a rally on September 19 and the police chief's resignation raised concerns about a rift in the coalition government, he said.
PTT and its subsidiaries were at the centre of the rally. PTT advanced 1.54 per cent to Bt264, PTT Exploration and Production (PTTEP) gained 1.03 per cent to Bt147, Thai Oil (TOP) surged 2.17 per cent to Bt47 and PTT Aromatics and Refining (PTTAR) edged up 1.92 per cent to Bt26.50, while IRPC dipped 0.04 per cent to Bt4.28, off the day's peak at Bt4.40.
Mobile phone service providers also climbed up on a report that the telecom regulator will by the end of this year open bids for the 15year licences to provide longdelayed thirdgeneration services.
Advanced Info Service (ADVANC) advanced 3.42 per cent to Bt98.25, Total Access Communication (DTAC) jumped 13.92 per cent to Bt45 and True Corp (TRUE) soared 11.11 per cent to Bt3.20.
Foreign investors bought a net Bt3.8 billion of shares, bringing their total net purchases to Bt42.05 billion since the beginning of this year.
Most other major Asian bourses gained on the day. South Korean shares closed 2.30 per cent higher, the benchmark Nikkei225 index moved up almost 2 per cent, the benchmark Hang Seng Index closed up 1.05 per cent and the Straits Times Index of Singapore added 1.05 per cent.
The Shanghai Composite Index, which covers A and B shares, bucked the buoyant trend, losing 0.73 per cent.
Pongrat Ratanataranananda, vice president at Bualuang Securities, said the continuing fund flow and stabilised oil price kept the Thai stock market - dominated by energy stocks at over 30 per cent of overall market capitalisation - on a upward trend.
The absence of negative factor also boosted the stock market's euphoria.
The upside, however, would be limited following the strong rally over the past six months, she warned.
"The SET Index would reach 720-730 points in technical terms. Our house is upgrading the SET target this year from the previous estimate at 680 points," she said.
Among the securities under PTT's umbrella, she recommends investors snap up PTTEP, as its price has yet to reach a new high, unlike its parent and its associated firms.
Pichai Lertsupongkit, senior vice president of Thanachart Securities, took the same line.
The bullishness would continue, thanks to capital inflows, he said.
He could not estimate the overdue steep correction in the Thai stock market at the moment as investor appetite in risk assets is increasing following the emergence of economic recovery signs.
"It's possible to see the stock market plunge around 40-50 points as it has never consolidated in six months," he said.
Montree Sornpaisarn, CEO of Kim Eng Securities (Thailand), said his research house has upgraded the SET target this year to 750 points from 700.
The heavy trading turnover also indicated higher confidence of investors.
Margin loans extended by the country's largest brokerage by market share have risen significantly to Bt2.3 billion, compared with Bt1.3 billion under normal stock market conditions and Bt900 million during bear markets, he said.
Sukit Udomsirikul, assistant managing director of Siam City Research Institute, said the stock market's trek above the 700 level could be ascribed to capital inflows after the US dollar hit a oneyear low.
In the short run, the stock market's effervescence would be extended within a range of 730-680 points.
The local political situation would be a depressing factor, as the red shirts will hold a rally on September 19 and the police chief's resignation raised concerns about a rift in the coalition government, he said.
Thursday, September 3, 2009
Thai Caprolactam betters 2009 revenue prediction
The Thai petrochemical operations of Japan's Ube Group are expected to post slightly better-than-expected sales revenue of 18.5 billion baht this year, thanks to rebounding global demand.
Thai Caprolactam Plc (TCL) provides 9.2 billion baht in revenue to Ube Group (Thailand), which includes Ube Nylon (Thailand) and Thai Synthetic Rubber Co, said TCL vice-president Suriyon Vonpen. In 2008, the group sold 21.7 billion baht worth of goods, with 13 billion generated from TCL, he added.
"After last month's performance update, we are projecting revenue this year will be slightly better than the original forecast," said Mr Suriyon.
The demand for caprolactam, the material for producing nylon, has improved since the second quarter after plunging in the final quarter of 2008. The downturn forced TCL to cut its production in the first quarter of this year - the first-ever reduction since the $400-million factory opened almost 12 years ago.
"We have seen a V-shaped price rebound and we already ramped up production since the second quarter. Our plant in Rayong is now running at 95%of maximum capacity," he added.
Caprolactam's price bounced back to $2,000 per tonne after halving from its peak of $2,400 last year. Ammonium sulphate has also improved to $120-130 per tonne, but still lower than $200 in 2008. TCL, the only manufacturer of its kind in Southeast Asia, has the capacity to produce 110,000 tonnes of caprolactam a year, together with 460,000 tonnes of ammonium sulphate as a byproduct.
About half the caprolactam output is exported to Asian markets such as China and Taiwan, while ammonium sulphate serves the domestic fertiliser market only,as supply is short of annual demand of 700,000 to 800,000 tonnes, he said.
But the industry's outlook depends on the global economy. TCL conducted a feasibility study on expanding caprolactam capacity to 130,000 tonnes a year for about 1 billion baht. The expansion would take at least two years,hopefully enough time for the global economy to fully recover, he said.
Ube Industries controls 91% of TCL,set up by Prachai Leophairatana, the founder of Thai Petrochemical Industry (TPI) Group, now renamed IRPC Plc.
Thai Caprolactam Plc (TCL) provides 9.2 billion baht in revenue to Ube Group (Thailand), which includes Ube Nylon (Thailand) and Thai Synthetic Rubber Co, said TCL vice-president Suriyon Vonpen. In 2008, the group sold 21.7 billion baht worth of goods, with 13 billion generated from TCL, he added.
"After last month's performance update, we are projecting revenue this year will be slightly better than the original forecast," said Mr Suriyon.
The demand for caprolactam, the material for producing nylon, has improved since the second quarter after plunging in the final quarter of 2008. The downturn forced TCL to cut its production in the first quarter of this year - the first-ever reduction since the $400-million factory opened almost 12 years ago.
"We have seen a V-shaped price rebound and we already ramped up production since the second quarter. Our plant in Rayong is now running at 95%of maximum capacity," he added.
Caprolactam's price bounced back to $2,000 per tonne after halving from its peak of $2,400 last year. Ammonium sulphate has also improved to $120-130 per tonne, but still lower than $200 in 2008. TCL, the only manufacturer of its kind in Southeast Asia, has the capacity to produce 110,000 tonnes of caprolactam a year, together with 460,000 tonnes of ammonium sulphate as a byproduct.
About half the caprolactam output is exported to Asian markets such as China and Taiwan, while ammonium sulphate serves the domestic fertiliser market only,as supply is short of annual demand of 700,000 to 800,000 tonnes, he said.
But the industry's outlook depends on the global economy. TCL conducted a feasibility study on expanding caprolactam capacity to 130,000 tonnes a year for about 1 billion baht. The expansion would take at least two years,hopefully enough time for the global economy to fully recover, he said.
Ube Industries controls 91% of TCL,set up by Prachai Leophairatana, the founder of Thai Petrochemical Industry (TPI) Group, now renamed IRPC Plc.
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