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GGC announces strategic plan to become global leader in the biofuel and green chemical market

Ready for Specialty Oleochemicals and driving sustainable economic growth in line with the New S-curve policy

1 August 2016, Bangkok – Global Green Chemicals Public Company Limited or GGC, a subsidiary of PTT Global Chemical Public Company Limited group of companies, announced its plan today, to increase production capacity of biodiesel. GCC plans to increase biodiesel output, which uses oil palm as a raw material, to accommodate increasing demands for biofuel, including state-of-the-art technology for the production of specialty oleochemicals. GGC is also looking into the possibility of extending its production to include sugarcane as raw materials, in response to the government's policy in promoting the cluster development of future industries (New S-Curve).   
     With a vision to become a leading green chemical producer, creating sustainable value for society, especially in the alternative energy industry, GGC is ready to handle the trend of increasing demands for biofuel by opening a second methyl ester, or biodiesel (B100) plant in Chonburi, in order to increase its production capacity.  The increased demand for production is a direct result of the government's policy promoting the use of alternative energy. 
     Mr. Jirawat Nooritanon, Managing Director of GGC Plc said "For almost a decade, we have succeeded in developing and pioneering the biofuel and green chemical industry in Thailand. Now, GGC is the leading biodiesel producer, with 26 percent market share and a satisfactory annual growth rate. In response to the government's Alternative Energy Development Plan (AEDP 2015), to increase the use of alternative energy, and build market demand for biofuel, GGC plans to increase its production capacity by opening its second biodiesel plant in Nong Yai, Chonburi on a 30-rai plot of land. This commitment is part of a response to the Eastern Economic Corridor Development Project in three provinces, which aims to develop a leading economic zone in ASEAN and to promote 10 target industries to drive forward the economy, including the bioeconomy." 
      The second biodiesel plant, with the capacity of 200,000 tons per year, is expected to start operating in 2018. This will put GGC's production capacity, when combined with the first plant, at 500,000 tons per year. With this new proposed technology, GGC estimates that it is expected to reduce production costs in the new factory, and increase the products market competitiveness.
     Apart from its leading position in the biodiesel market, GGC is also the only fatty alcohol producer in Thailand. The biodiesel production business is operated under the trademark THAIOL by Thai Fatty Alcohol Co., Ltd., a subsidiary of GGC. Fatty alcohol is a basic oleochemical used as the substrate for production of detergents, dishwashing liquid, shampoo, and general household cleaning products. At present, the oleochemical industry in Southeast Asia, China, and India has grown by 6 percent per year. There is also increased demand for oleochemical products with specific properties. GGC conducts extensive studies on the market, to understand how the use of advanced technology can be utilized, to decide on the type of specialty oleochemicals to be produced. This will help reduce reliance on imported raw material and fulfill the demands for environmentally-friendly products.
     The company is also looking into possibilities of expanding its production base from oil palm to include sugarcane through investment in a biocomplex to enter the bioplastic and biochemical business.
     "The Company is studying the possibilities of establishing a biocomplex which will have an integrated sugarcane crushing mill, ethanol plant, biomass power plant and other bio-based utility infrastructure, and bioplastics and biochemicals production plant. We believe that a suitable approach for a sustainable business operation in the long run is to invest in production facilities, which integrate the production of raw materials and downstream products as well as the generation of public utilities. This approach will create joint benefits along the supply chain between the producers and the agricultural industry, based on the principles of raw material and product reciprocity. The fact that the factory is close to the raw material source helps save transportation costs. The biocomplex business plans are currently under review. The development of our biocomplex will focus on development of biochemical and bioplastics production facilities" said Mr. Nooritanon.
     Establishment of a plant in that form will contribute to lower investment and production costs when compared with establishing general factories in industrial estates. To develop a biocomplex that is sustainable and competitive, the factory will produce both main products and by-products, namely biofuel, bioplastic, biochemical, and biomass power. The investment in developing building the biocomplex is in response to the government's Bioeconomy policy by stimulating more investment in terms of biochemical in the country.
      Apart from extending production capacity and developing the business, GGC has also secured oil palm sources by supporting and encouraging farmers in the upper north east, namely in Sakon Nakhon, Bueng Kan, and Nakhon Phanom, to take up oil palm cultivation with sustainable production control in accordance with the Roundtable on Sustainable Palm Oil (RSPO). This promotes the concept of sustainable business from upstream to downstream. It also adds value to the raw materials that are in higher demand globally.
      "With various strategies and over 10 years of experience in the biofuel and green chemical business, today, GGC is ready to be a one of the pioneering businesses responding to the New S-Curve This will create jobs for Thai people, both in the industrial and the agricultural sectors, leading to sustainable growth of the nation's economy," Mr. Nooritanon concluded.

About GGC:
Global Green Chemicals Public Company Limited or GGC, former Thai Oleochemicals Company Limited, is the pioneer oleochemicals producers in Thailand under PTTGC group. Since established, we have been driven by strong vision to be one of the leading companies in global oleochemicals market, together with promoting Thailand’s competitiveness in related downstream industry in renewable energy, health & personal care products and surfactants, and thereby sustaining the agricultural sector and natural oil industry of the country.