GGC forecasts 20% sales growth, revenue steady amid falling prices
Global Green Chemicals (GGC), the biochemical subsidiary of PTT Global Chemical (PTTGC), anticipates a 20% increase in sales this year, primarily driven by palm oil-based products. However, overall revenue for PTTGC’s Biochemical subsidiary, GGC is expected to remain steady due to a decrease in product prices.
Kridsada Prasertsuka, PTTGGC Biochemical’s managing director, attributes the sales increase to the rising demand for palm oil-derived methyl ester, or biodiesel 100 (B100). This biofuel is blended with diesel as part of a government initiative to reduce reliance on fossil fuels. Sales of fatty alcohol and refined glycerin, used as raw materials in cosmetics, pharmaceuticals, detergents, and surfactants, are also projected to grow by 5-10%.
Despite the sales growth, Kridsada expects the company’s revenue in 2023 to remain at a similar level to last year’s earnings of 25.1 billion baht, as product prices have fallen by 40-60%. To counteract this, GGC aims to boost revenue through acquisitions, with negotiations underway with oleochemical producers, and results due to be announced in early 2023.
Oleochemicals serve as raw materials for various cosmetic products and some food supplements. GGC previously announced its plans to invest 2.5 billion baht in developing new oleochemical-based products to increase revenue, reported Bangkok Post.
Additionally, PTTGC Biochemicals subsidiary, GGC, completed the construction of a biopolymer production facility at the Nakhon Sawan Biocomplex (NBC). This project was undertaken in collaboration with Kaset Thai International Sugar Corporation. The factory is managed by NatureWorks, a joint venture between PTTGC and US-based Cargill Inc.
NatureWorks plans to produce polylactic acid (PLA), a sugar-derived biopolymer with applications in products such as coffee capsules, food packaging, 3D printing filaments, hygienic masks, and home appliances. Initial production will be 600,000 litres of ethanol per day, approximately 60% of the factory’s full capacity, as current sugar supplies are insufficient.
Kridsada revealed that GGC aims to increase sugar production by working with farmers and sugar millers to improve productivity. PLA production will occur during the second phase of NBC’s development, with additional construction slated for completion by the end of next year—commercial operations are anticipated to begin in 2025.
