SET-listed IRPC Plc is further focusing on specialty petroleum and petrochemical products in the coming years in a bid to avoid the high competitiveness of commodity-grade products in the global market.
Nidcha Jirametthanakij, senior executive vice-president for corporate accounting and finance, said specialty polymers are being promoted as the new wave of petrochemical products in Asia.
These products have strong potential amid the continuing US-China trade war.
"IRPC wants to gain more revenue and profit from specialty-grade polymers than commodity-grade ones, whose prices depend on the global market," Mrs Nidcha said.
IRPC wants to emphasise the customer, making high-value polymers serve the requirements of each client.
"The company can offer tailor-made polymers, so sales and innovation departments have to work together to pitch purchase orders," Mrs Nidcha said. "This strategy will enhance satisfaction among customers, and the products can be out of the competition with other commodity-grade goods."
The trade war between the world's two biggest economies caused IRPC to accelerate its policy for ultra-high-molecular-weight polyethylene.
This polyethylene compound has several unique properties, such as high abrasion resistance, impact strength and low friction, making it suitable for cements, anti-chlorine pipes, marine pipes, machinery parts, solar panel floating units and lithium battery parts.
In addition, IRPC will add innovation to petroleum products; a recent success is asphalt bitumen grade 40/50 to make roads smoother.
The product has already received certification from the Highways Department. The first cargo of new asphalt was delivered last month to pave and fix Rama II Road.
Mrs Nidcha said specialty polymers account for 55% of IRPC's net profit. The figure is expected to rise to 60% in 2020.
Commodity-grade products represent 45% of net profit, with a plan to decline to 40%.
"IRPC will deal with 10 innovative products to be patented in the near future under an investment of US$1 million in an R&D centre," Mrs Nidcha said.
President Noppadol Pinsupa said strong competition and the trade war have led IRPC to delay the schedule to develop the Maximum Aromatics Project (MARS) with a planned investment of $1.3 billion.
The final investment decision on MARS will be made in the first quarter of 2021. The project includes an annual capacity of paraxylene at 1.3 million tonnes and benzene at 500,000 tonnes.
"IRPC plans to allocate 9 billion baht as the 2020 investment budget to expand future business and acquire new assets," Mr Noppadol said.
Of the total budget, 4 billion baht will go to the Ultra Clean Fuel project to upgrade the oil refinery unit in order to comply with the Euro 5 emission standard, scheduled to be completed in the fourth quarter of 2021.
A further 3 billion baht is earmarked for asset acquisition deals involving downstream petrochemicals across Asia-Pacific. The remaining 2 billion baht will go to maintenance programmes.
