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IRPC to invest $158m to pump up pro |
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Integrated Refinery and Petrochemical Complex (IRPC) is to invest US$158 million (Bt5.3 billion) in boosting the production capacity of propylene and plastic ABS next year. Of the total investment, it would spend $88 million to increase the production capacity of propylene by 100,000 tonnes per year from 312,000 tonnes per year at present. The remaining $70 million will go towards building the sixth unit of plastic ABS with annual production capacity of 80,000 tonnes. Both projects are scheduled to begin construction early next year and be completed in 2011-12. IRPC operates four units of plastic ABS with a total capacity of 120,000 tonnes per year. The fifth unit will commence operations next year with production capacity of 20,000 tonnes per year. "Presently, we account for 49 per cent of the plastic ABS market in Thailand. After raising our production capacity to 220,000 tonnes per year, we expect to supply 60 per cent of the domestic market. The rest of the output will be exported to Japan and China, which are our main destinations," said chief planning and administration officer Suphon Taptimcharoon. He said the company's revenue would rise dramatically next year following the completion of additional capacity of plastic ABS and high-density polyethylene. "We will set aside a part of the cash flow for our new investment projects, including the delayed long-residue efficiency-enhancement project. The board needs to consider the internal rate of return before making a final decision because this project requires around US$1 billion worth of the investment," he said. However, the Euro IV improvement project and bottom-upgrading project have stayed on track. Both of them will be completed in 2011. IRPC and its subsidiaries recorded consolidated net profit for the previous quarter of Bt5.126 billion, an increase of 3 per cent from the same period last year. The consolidated revenue was Bt73.74 billion, surging 33 per cent year on year. Gross profit margin in the second quarter was 9 per cent, similar to the same period last year, but significantly higher than the first quarter, which was only 3 per cent.
The plant
utilisation rate was in normal average at 183,115 barrels per day,
accounting for 85 per cent of full capacity. |
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The Nation, 19.08.2008 |
