A) Value Added Oleochemicals (VAO) Methyl Ester Methyl ester is a basic oleochemical. Also known as B100, it can be blended into diesel to make biodiesel that meets EN14214 European standards for diesel engines. Methyl ester helps augment the efficiency of diesel, for both lubrication and combustion and significantly reduce pollution or environmental impact which benefits in PM 2.5 pollution reduction. Fatty Alcohol Fatty alcohol is a basic oleochemicals used as a feedstock in the personal care industry. Also used as an ingredient or a component of many other products, including surfactants, plasticizers, solvents, aroma compounds for perfumes, detergents, foam stabilizers, lubricants, cosmetics, plastic intermediates, shampoos, as well as paints and coating products. They are also found in leatherwear and ink. Fatty Alcohol Ethoxylate Derived from fatty alcohol and EO, fatty alcohol ethoxylate is used as feedstock for personal care and home care products. In textiles, it is used as a scouring agent, which is part of the preparation process, and as a softener, which is the last step in fibre preparation. Glycerin Glycerin, a by-product of methyl ester and fatty alcohol production, is used in pharmaceuticals, food, and personal care industries and other industries. Fatty Acid Fatty acid is a basic oleochemical product used for personal care production, such as soap and cosmetics, also used as a feedstock in specialty oleochemicals downstream production. Specialty Oleochemicals Special ty oleochemicals are made from basic oleochemicals in a downstream process. Examples of specialty oleochemicals are ozone acid, ester compound from different fatty acid, and eco-friendly polyols. These specialty products are used in multiple industries, including cleaning products, personal care products, plastic additives, construction, agriculture, and oil well drilling. B) Bioplastics and Biochemicals Bioplastics and bio-based chemicals are derived from natural feedstock, including sugar from sugarcane, cassava, and corn. The feedstock, depend on the type, is turned into chemicals, such as lactic and succinic acids. These two chemicals are used in the production of bioplastic such as polylactic acid (PLA) and polyesters such as polybutylene succinate (PBS), respectively. GC produces these value-added oleochemicals (VAO) through Global Green Chemical Public Company Limited (GGC) group, Emery Oleochemicals (M) Sdn. Bhd. (EOM), and Emery Specialty Chemicals Sdn. Bhd. (ESC) (EOM and ESC collectively called Emery), a joint venture between PTTGC International Private Limited (“GC Inter”) and Sime Darby Plantation (M) Sdn. Bhd. (“SDP”), headquartered in Malaysia. Emery is a world-class producer and distributor of oleochemicals. Emery has plants in 3 countries covering key regions across the globe, including Malaysia, Germany, and the U.S., and a worldwide network of subsidiaries to support trading and marketing. Its distribution agents are also present in all geographical regions. On the other hand, in order to align with company’s strategy in Investment Portfolio, GC and SDP have considered selling the company, Emery in Asia Pacific region or Malaysia which has basic oleochemical as a primary product. GC Inter and SDP have completed the sale of their collective 100% of ordinary shares in the ASIA Pacific business of Emery to Edenor Technology Sdn. Bhd. (“ETSB”) on November 1, 2021. However, GC Inter and SDP still hold the Emery business in North America and Europe on a 50:50 basis under the company, namely Emery Oleochemicals UK Limited (“EOUK”). This transaction has aligned with GC long-term growth strategy. GC operates the bioplastics and biochemicals business through NatureWorks LLC. NatureWorks, a joint venture between GC International Corporation (“GCI”) and Cargill, Intercorporated (Cargill),US, is the proprietor of a polylactic acid (PLA) technology with a commercial capacity in US of 150,000 tons per year. In July 2021, Natureworks made a decision to expand the capacity by establishing the second plant at Nakhonsawan Biocomplex, Thailand. This plant produces Polylactide and PLA with the capacity of 75,000 tons per year, which is under constructing and aimed to start the 50 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2021
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