A) ETHYLENEOXIDE (EO)/ETHYLENEGLYCOL (EG) As a downstream product of ethylene, EO used as feedstock for EG and other downstream products. EG-based products consist of mono ethylene glycol (MEG), diethylene glycol (DEG), triethylene glycol (TEG), and polyethylene glycol (PEG). Among these products, MEG is the main feedstock combined with PTA for the production of PET bottles and polyester textile. B) ETHANOLAMINE (EA) Derived from EO, EA primarily comes in either the monoethanolamine (MEA), diethanolamine (DEA), and triethanolamine (TEA) form. EA products are used as ingredients for the production of shampoos, hair conditioners, fabric softeners, and cosmetic products, as well as in pharmaceutical and cement industries, among others. All of these EO-based products are produced by GC Glycol Co., Ltd. (Glycol). In 2021, the EO-Based Performance Business Unit commercially operates two plants located in WHA Eastern Industrial Estate, Rayong. The breakdown of production capacities appears in the table below: Company Product Nameplate Capacity (thousand tons per year) Glycol Mono Ethylene Glycol (MEG) 423 Ethanolamine (EA) 50 FEEDSTOCK SOURCING The primary feedstock of MEG production is ethylene, which Glycol obtains from GC through long-term purchase agreements. GC’s olefin plants produce sufficient ethylene for MEG production. POLICY AND MARKETING It is policy of the EO-Based Performance Business Unit to sell its products to domestic business owners at prices and under trade conditions that are competitive with other manufacturers, focusing on creating maximum added value from EO products, which consist of the following: EG Products: As Thailand’s first and only EG producer, Glycol uses its strengths and business advantages in marketing, such as its position as a domestic producer of high-purity products, faster response and delivery time compared to other producers, and the ability to deliver products continuously from its storage tanks. In 2021 Glycol totally distributed MEG products about 452,000 tons which are 440,000 tons (97%) and 12,000 tons (3%) for domestic and international market, respectively. EA Products: Glycol’s policy is to maximize the domestic market share by focusing on direct sale to major clients and through distributors for retail customers. The remaining volume from domestic sale is exported internationally to countries that yield maximum benefits. Glycol also seeks new regional markets, such as in Asia and Australia. In 2021, Glycol produced approximately 38,000 tons of EA products in total. Of this, about 12,000 tons, (32%), was sold domestically, while the remaining 26,000 tons, (68%), was sold in international markets. In 2021 Glycol totally distributed MEG products about 452,000 tons which are 440,000 tons (97%) for domestic market 43 BUSINESS OPERATION AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL REPORTS AND FINANCIAL STATEMENTS APPENDIX
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