IRPC chalks out Bt70 bn investment
IRPC has earmarked Bt70 billion to invest in its Phoenix as well as non-Phoenix and maintenance projects from 2012 to 2016, with revenue contribution from the Phoenix projects targeted to double to 60 per cent from about 30 per cent currently.
The Phoenix Project is the name of IRPC’s investment plan aimed at making the integrated oil and petrochemical manufacturer the petrochemical leader in Asia by 2014.
President Atikom Terbsiri said yesterday that about Bt60 billion of the Bt70-billion budget was for Phoenix and non-Phoenix projects and the remaining Bt10 billion for maintenance.
BOOST IN PROPYLENE CAPACITY
The biggest Phoenix project for IRPC is the expansion of propylene capacity by 420,000 tonnes to 740,000 tonnes per year from the current 320,000 tonnes, which needs a budget of US$990 million (Bt30.8 billion).
The first propylene expansion phase, on which IRPC has already spent about $90 million to increase output by 100,000 tonnes, started this year. The new capacity will come on stream in the second quarter of next year, taking IRPC’s propylene production capacity to 420,000 tonnes per year.
The company will next invest $900 million to expand propylene capacity by 320,000 tonnes by 2016.
IRPC would allocate nearly Bt20 billion for investment next year. Most of the budget will go to capacity expansion for green ABS, a |speciality product made from para rubber.
It will also invest in the 2,500-rai Ban Kai Industrial Estate in Rayong, which is the green industrial estate that IRPC will co-develop with the Industrial Estate Authority of Thailand.
The first phase for the estate’s construction needs a budget of Bt700 million, Atikom said.
Duangkamol Settanung, chief financial officer, said the revenue growth target of 12 per cent reflected the increase in production capacity from 160,000 barrels per day this year to 176,000 next year, as no maintenance shutdowns are planned.
IRPC will also benefit from the new capacity for propylene and treated distillate aromatic extract, which will be increased to 50,000 tonnes per year from 20,000 currently, she said.
The company will also recognise a full year of revenue from the combined heat and power plant project. The power plant is expected to generate revenue of Bt80 million to Bt100 million per month or as much as Bt1.2 billion per year.
