The special properties of plastic
Demand for plastic is
increasing at a current
rate of ten per cent a
year. In order to meet
this demand, TPI is
looking to expand its
production capacity
and to diversify. As the
government continues to pursue trade
liberalisation policies in line with world trends, it
will also be important that TPI increases its
competitive ability. This is a challenge that TPI
will meet head on.
The issuing of shares to the public and the official listing of TPI on the Stock Exchange of Thailand will provide much of the necessary capital to consolidate the company's leading position in the petrochemical industry. The company is planning to widen the range of its petrochemical products to include such high value added materials as PMMA and nylons used in the production of autoparts. Expansion into the upstream petrochemical industry will involve a new crude oil refinery and anew condensate splitter that will produce, among other products, lube base oils, gasoline and diesel fuel.
This upstream integration should lead to a decrease in the company's raw material costs. Expansion as a whole will result in greater economies of scale. As TPI increases its competitiveness, a larger proportion of sales will be exported to China and the ASEAN countries.