March 3, 2025, Bangkok – PTT Global Chemical Public Company Limited (GC) has set its strategic goals, focusing on Holistic Optimization to restructure costs, strengthen competitiveness, and establish a solid foundation for long-term growth amid economic volatility and the petrochemical industry’s most challenging downturn. The company aims to reduce costs and increase revenue by THB 4.5 billion annually through cost-saving initiatives, operational efficiency enhancements, and liquidity improvements while expanding into high-value & low-carbon businesses. Additionally, GC will be the first company to import ethane from the United States and integrate to its operations in Thailand, leveraging it as a cost-efficient alternative to other raw materials without requiring major plant infrastructure modifications, further reducing long-term cost and strengthening its cost efficiency and competitiveness. Also, GC is reinforcing Map Ta Phut as the Specialty Hub for Southeast Asia, expanding allnex’s capabilities, and advancing Bio & Circularity business models to provide sustainable solutions across industries.

Mr. Narongsak Jivakanun, CEO of GC, said: “The industry as a whole is facing global economic volatility, shifts in U.S. policies, and an oversupply in the petrochemical sector. However, GC aims at turnaround—putting an end to losses and driving sustainable growth. Through efficient cost management and a strategic shift towards high-value, low-carbon businesses, we are confident that our people have the capability to make a difference, enabling GC to adapt and thrive amid evolving industry trends.”

GC is committed to achieving a business turnaround with a strategy centered around Holistic Optimization, which aims to stabilize operations and reduce costs while enhancing revenue streams. The company plans to achieve a revenue increase of 4.5 billion Baht annually by implementing cost reduction measures, improving liquidity from existing assets, and streamlining operations. GC is committed to reinforcing its position in the market through three key approaches: enhancing competitiveness, expanding into high-value businesses, and driving growth in sustainable businesses.

Enhancing Competitiveness

To strengthen competitiveness and ensure short-term stability, GC has implemented urgent measures to enhance efficiency, reduce costs, and maintain business resilience. These initiatives include securing an ethane supply agreement with PTT, which is expected to increase ethane flow by 20% in 2025. Additionally, GC is optimizing asset utilization under an Asset Light approach, reducing capital expenditures (Capex), and bolstering liquidity through a revolving credit facility. These measures are designed to reinforce financial stability and support long-term growth.

As part of its strategy to enhance raw material security and strengthen cost competitiveness in the long run, GC will be the first company to import ethane from the United States for use in Thailand as a cost-efficient alternative to other raw materials. GC has signed agreements with PTT and global partners, including subsidiaries of Enterprise Products Partners, MISC Berhad, and Thai Tank Terminal Co., Ltd., to secure and transport high-quality ethane of 400,000 tons annually over a 15-year period. This collaboration will allow GC to utilize ethane as a raw material without requiring significant infrastructure adjustments at its plants, which are already designed to handle ethane. The project is expected to commence in 2029.

Expanding High-Value Business Potential

GC continues to advance its allnex SEA Hub in Rayong, which is in the first phase of feasibility studies. A final investment decision (FID) is expected by 2026. The focus will be on Waterborne Coatings and Specialty Coating Resins, targeting the specialty chemicals market. The company is also continuing to grow the allnex business, with efforts to expand market share and increase competitiveness. In 2024, allnex expanded production capacity at its largest plant in Zhejiang, China, and invested in a new facility in Mahad, India, set to be completed in Q3 2026. This expansion will enhance production capabilities and distribution in high-growth markets.

Additionally, GC is advancing its strategy to establish Map Ta Phut as a leading Specialty Hub, working closely with government authorities to attract world-class partners and enhance Thailand’s competitiveness across the entire supply chain. In parallel, GC is actively exploring collaborations with industry partners to introduce new projects into the Specialty Hub, with a focus on advanced, environmentally friendly industries. This initiative aims to create a fully integrated specialty chemicals ecosystem, strengthen industrial competitiveness, and attract foreign investment. An example is GC’s collaboration with Toray to explore the development of specialty chemicals derived from agricultural waste, catering to automotive parts, textiles, and electronics industries. This research is supported by funding from the Japanese government and is expected to be completed by 2027.

Advancing Sustainable Growth

GC continues to lead the way in sustainability through innovative, environmentally friendly chemical solutions that meet the growing demand for circular economy-driven products. With a focus on four core areas within its Bio & Circularity business, GC is positioned to deliver solutions across various industries, including packaging, clean energy, bioplastics, and specialty chemicals:

1. Oleochemicals – Through GGC and Emery, subsidiaries within GC Group, GC is developing bio-based chemical solutions that replace fossil-based raw materials in industries such as cosmetics, personal care, and specialty chemicals.
2. Bioplastics – In partnership with Cargill, GC’s joint venture, NatureWorks, develops and produces PLA (polylactic acid), a biodegradable bioplastic that supports markets in packaging, textiles, and consumer goods. The commercial operations of the facility are expected to commence by the end of 2026.
3. Recycled Plastics – Through ENVICCO, GC has been a pioneer in producing high-quality recycled materials, including rPET and rHDPE, certified to international safety standards, and ideal for food and beverage packaging industries.
4. Biofuels & Biopolymers – GC is expanding its biorefinery ecosystem, including the production of Sustainable Aviation Fuel (SAF) for the aviation industry, as well as Bio-chemicals and Bio-polymer for packaging, construction, automotive parts, electronics, and textiles.

Reaffirming its leadership in sustainability, GC has been ranked in the global sustainable company with a Top 1% S&P Global ESG Score and has been ranked No. 1 in the chemicals business category of the Dow Jones Sustainability Indices (DJSI) World Index for the sixth consecutive year, milestones that make GC the first and only company in the chemical sector to achieve such a distinction. Moreover, in 2024, GC has earned an ‘A’ rating (Leadership Level) for water security management for five consecutive years, as assessed by the CDP Sustainability Ratings among more than 22,000 companies, a testament to the company’s unwavering commitment to sustainable operations and long-term value creation.

#StandOutSustainably

As part of its ongoing commitment to innovation and sustainability, GC has launched the GC StandOut campaign to showcase the company’s unique strengths and its continuous development through sustainable innovation. The campaign highlights GC’s focus on fostering new ways of thinking and working to drive improved outcomes and create lasting value. For more information on how to embrace your difference, visit www.gcstandout.com.