GC Targets Turnaround with Strategic Focus on Cost Reduction and Revenue Growth
PTT Global Chemical Public Company Limited has unveiled its ambitious strategic roadmap to overcome industry challenges and achieve sustainable growth. In response to the global economic volatility and the petrochemical sector’s downturn, Global Chemical Public Company Limited is focusing on “Holistic Optimization” to restructure its costs, boost its competitiveness, and pave the way for long-term stability. The company’s overarching goal is to reduce costs and increase revenue by THB 4.5 billion annually through operational efficiency, cost-saving initiatives, and expanding into high-value, low-carbon businesses.
Furthermore, Global Chemical Public Company Limited is set to lead the way in the energy sector by importing ethane from the United States, integrating it into its operations in Thailand as an efficient alternative to other raw materials. This move will reduce costs significantly without the need for major plant infrastructure changes. GC also plans to strengthen Thailand’s position as a hub for specialty chemicals in Southeast Asia, advancing its Bio & Circularity business models, and providing sustainable solutions across industries.
Global Chemical Public Company Limited’s Response to Industry Challenges
Global Chemical Public Company Limited’s strategic shift is driven by the increasing pressures within the petrochemical industry, which faces global economic volatility, shifting U.S. policies, and an oversupply of materials. Despite these challenges, GC aims to put an end to its recent losses and transform into a profitable, sustainable business. CEO Mr. Narongsak Jivakanun emphasized the company’s determination to drive growth through efficient cost management and a strategic focus on high-value, low-carbon businesses.
“We are confident that our people have the capability to make a difference, enabling Global Chemical Public Company Limitedto adapt and thrive amid evolving industry trends,” Mr. Jivakanun stated. “Through a combination of operational efficiency and strategic shifts, we aim to not only recover but grow sustainably in the years ahead.”
Holistic Optimization: Key to Global Chemical Public Company Limited’s Strategic Goals
The cornerstone of Global Chemical Public Company Limited’s strategy is Holistic Optimization. This approach focuses on stabilizing operations, reducing costs, and enhancing revenue streams. The company is committed to achieving a THB 4.5 billion revenue increase annually by implementing cost-reduction measures, improving liquidity from existing assets, and streamlining operations. GC’s strategy will emphasize three key areas: enhancing competitiveness, expanding into high-value businesses, and driving sustainable growth.
Enhancing Competitiveness: Cost Efficiency and Asset Optimization
To bolster competitiveness, Global Chemical Public Company Limited has implemented urgent measures to improve operational efficiency, reduce costs, and ensure business resilience. A key component of this is securing an ethane supply agreement with PTT. The agreement is set to increase the flow of ethane by 20% by 2025, which will help GC secure a stable and cost-effective raw material supply.
Additionally, Global Chemical Public Company Limited is pursuing an Asset Light strategy to optimize asset utilization, which will help reduce capital expenditures (Capex) and increase liquidity. The company is also bolstering its financial stability through a revolving credit facility, ensuring it has the resources to weather any volatility in the market.
GC has taken a further step in strengthening its long-term cost competitiveness by becoming the first company to import ethane from the United States. This agreement, secured through partnerships with PTT, Enterprise Products Partners, MISC Berhad, and Thai Tank Terminal Co., Ltd., will allow GC to import 400,000 tons of high-quality ethane annually for 15 years.
This collaboration will enable GC to utilize ethane as a cost-effective alternative to other raw materials without the need for significant infrastructure modifications. As GC’s plants are already designed to handle ethane, this integration will ensure seamless operations, reduce long-term costs, and improve overall cost efficiency. The project is set to begin in 2029, marking a significant milestone for GC’s operations in Thailand.
Expanding High-Value Business Potential
Global Chemical Public Company Limited continues to strengthen its position in the specialty chemicals market by advancing the allnex Southeast Asia (SEA) Hub in Rayong. The first phase of feasibility studies for this project is underway, with a final investment decision (FID) expected by 2026. The allnex SEA Hub will focus on Waterborne Coatings and Specialty Coating Resins, targeting the growing specialty chemicals market.
In addition to its local expansion, Global Chemical Public Company Limitedis making significant strides in its global allnex business. The company has already expanded production capacity at its largest plant in Zhejiang, China, and is constructing a new facility in Mahad, India, which is set to be completed in Q3 2026. These investments will enhance GC’s production capabilities and its presence in high-growth markets, enabling the company to tap into new opportunities in the specialty chemicals sector.
Furthermore, GC is reinforcing its Map Ta Phut facility as a specialty hub for Southeast Asia. By collaborating closely with government authorities, GC aims to attract world-class partners and enhance Thailand’s competitiveness across the supply chain. In parallel, GC is working with industry partners to introduce new projects into the Specialty Hub, focusing on advanced, environmentally friendly industries.
One notable project involves a collaboration with Toray to develop specialty chemicals derived from agricultural waste. This innovative research targets the automotive, textiles, and electronics industries and is supported by funding from the Japanese government. The project is expected to be completed by 2027, further positioning GC as a leader in sustainable chemical solutions.
Advancing Sustainable Growth: Bio & Circularity Business
As part of its commitment to sustainability, GC is actively advancing its Bio & Circularity business models, which focus on providing sustainable solutions across industries. GC is committed to four core areas within this business:
- Oleochemicals – GC, through its subsidiaries GGC and Emery, is developing bio-based chemical solutions to replace fossil-based raw materials in industries like cosmetics, personal care, and specialty chemicals.
- Bioplastics – In partnership with Cargill, GC’s joint venture NatureWorks is focused on producing PLA (polylactic acid), a biodegradable bioplastic for markets like packaging, textiles, and consumer goods. The commercial operations of this facility are expected to begin by the end of 2026.
- Recycled Plastics – Through ENVICCO, GC is producing high-quality recycled materials, including rPET and rHDPE, certified to international safety standards. These recycled materials are ideal for use in food and beverage packaging industries.
- Biofuels & Biopolymers – GC is expanding its biorefinery ecosystem, which includes the production of Sustainable Aviation Fuel (SAF) for the aviation industry, as well as bio-chemicals and bio-polymers for use in packaging, construction, automotive parts, electronics, and textiles.
In recognition of its leadership in sustainability, GC has consistently ranked in the top 1% of global companies on the S&P Global ESG Score. Additionally, for the sixth consecutive year, GC has been ranked No. 1 in the chemicals business category of the Dow Jones Sustainability Indices (DJSI) World Index. This achievement highlights the company’s dedication to sustainability and long-term value creation.
GC has also earned an ‘A’ rating (Leadership Level) for water security management, a recognition it has maintained for five consecutive years. This rating, provided by the CDP Sustainability Ratings, is awarded to companies that demonstrate outstanding water management practices.
GC StandOut Campaign: Driving Innovation and Sustainable Value
As part of its ongoing commitment to innovation and sustainability, GC has launched the GC StandOut campaign, which highlights the company’s unique strengths and its continuous development through sustainable innovation. The campaign focuses on fostering new ways of thinking and working to drive improved outcomes and create lasting value. For more information on how GC embraces sustainability, visit www.gcstandout.com.
Conclusion: A Path to Sustainable Growth
GC’s strategic focus on cost reduction, operational efficiency, and expansion into high-value, low-carbon businesses positions the company to navigate the challenges in the petrochemical sector and emerge stronger. Through initiatives like importing U.S. ethane, advancing its specialty chemicals hub, and leading in sustainability, GC is committed to turning its business around and driving growth that benefits not only the company but also the global community. By embracing sustainable innovation, GC is on track to achieve its vision of long-term, profitable growth, contributing to a cleaner, greener future for all.
