GGC aims to grow sales by 20% this year from methyl esters (B100), fatty alcohols and glycerin, investing 8 billion MandA deals aimed at growing the product business. for the environment, both expanding existing businesses as well as investing in new businesses such as Biojet
Mr. Krisada Prasertsukho, Managing Director of Global Green Chemicals Public Company Limited or GGC, revealed that the company aims to increase sales this year by 20% compared to the previous year. This was from the sales volume of methyl ester (B100), which improved about 20%, while fatty alcohol sales. It is expected to increase by 5-10%. It is expected that the volume will move according to the demand for B100. Although overall sales in 2023 will grow, the company is still pressured by a sharp drop in product selling prices, or about 40-60% compared to the previous year. May affect this year's income down. or similar compared to the previous year with a total income of 25,164 million baht
However, the company expects that the situation of product selling prices will start to improve in 2024, which will lead to revenue in 2024 growing accordingly. O Complex (NBC) Phase 1 to operate for a full year. Including income from businesses that the company is in the process of acquisition (MandA) that will be clear early next year. The company has already prepared about 8 billion baht for MandA deals.
“Currently, the company has the ability to produce 500,000 tons of B100 per year, but the demand in the market has not increased much. Therefore, the machine cannot be fully operated. Last year, the engine was running 50%, but this year has improved to 65% according to the increasing demand. After the government announced the use of B7, the demand disappeared by 25% instead of B10-B20, but the company was able to manage costs to be competitive. In addition, in the glycerine business, the price dropped 60% compared to the previous year. The company therefore focuses more on selling in the high-grade market, ”said Mr. Krisada.
As for the progress of the NBC Phase 1 project, it has started commercial operations. but not at full capacity due to insufficient raw materials At present, the ethanol production is only 50-60% from its full capacity of 600,000 liters per day. This year, the company has encouraged farmers to grow sugarcane to increase productivity. However, the next sugarcane crushing season Starting in mid-December, the company will try to produce ethanol to meet the target of 600,000 liters per day. As for the progress of the NBC Phase 2 project, the infrastructure system has now begun construction. Including preparing raw materials for NatureWorks, a major producer of bioplastics in the United States. The construction is expected to be completed in the middle of 2024 and will start providing services and recognize revenue within the next year.
Mr. Krisada said that the company aims to grow. Direction of operation according to 3 main strategies to achieve long-term goals, namely Strategy 1: Enhance Competitiveness, Enhance Competitiveness, and Resilience. in order to cope with situations that put pressure on business operations, including generating profits at full capacity by focusing on cost management to create competitiveness throughout the supply chain
The second strategy is to grow in the business of environmental products (Growth Portfolio), focusing on creating growth through investment in the existing business of the company. Including new business investments, including biofuel business, including Biojet, which is expected to start seeing products and marketing in 2024, biochemical business and food ingredient and nutraceutical business in the group of cosmetics and supplements more and Strategy 3: Sustainable Business Operations (Sustainability Development) for being a company that operates sustainably (Sustainable Company).-Thai News Agency
Source: Thai News Agency
