PTTCG may opt to build new plant in SE Asia

The Constitution’s Article 67 (2) requires owners of investment projects categorised as harmful |to the environment to conduct |an environmental health impact assessment (EHIA). A PTTGC subsidiary, TOC Glycol, has been unable to expand the capacity |of its ethylene glycol plant due |to the requirements of the law, despite having completed the EHIA.
PTTGC president and CEO Veerasak Kositpaisal said recently the company and its partner, French-based chemical firm Perstorp, in which PTTGC last |year announced it would acquire |a 51-per-cent stake, want to invest in a TDI plant in Southeast Asia. They are considering many countries in the region for the investment.
Thailand is one of the countries being considered, although conducting the EHIA would take time to complete, he said.
He admitted that the expansion phase of the ethylene glycol plant had yet to commence operation due to the process of complying with Article 67 (2).
The company does not know when the project will get off the ground.
Veerasak said PTTGC still believed Thailand could be a good location for the TDI plant. However, it could not commit to the Kingdom, as other countries in the region had potential for the investment.
PTTGC and Perstorp plan |to invest in a TDI plant out-|side France, and Southeast Asia is the target as the region provides rapid growth for investors.
TDI is a core component for making polyurethane used to make products in the automotive industry.
A source from PTT said that to establish a TDI plant in Thailand might be difficult as cyanide, which is a hazardous compound, is used as a component in the production process. As a consequence, the EHIA was necessary.
“PTTGC, therefore, has to consider other countries in this region as a way out. We all know that to invest in the petrochemical industry now is very difficult,” the source said.