A) Phenol Phenol, an intermediate petrochemical derived from benzene and propylene, is a key feedstock for bisphenol A (BPA), phenolic resin, and various derivatives for the plastic, pharmaceuticals, and chemical industries. B) Acetone Acetone, a by-product from phenol production, is a very common solvent in various industries, such as chemical, cosmetics, and medical industries. Acetone is also used as feedstock for bisphenol A and methyl methacrylate, used in plastics and coating industries, among others. C) Bisphenol A Bisphenol A is an intermediate petrochemical and feedstock for polycarbonate (PC), an engineering plastic used in various industries, such as automotive industry, electrical appliance and electronics industry, and construction industry. BPA is also a key feedstock for epoxy resin, which is used in composite materials, coatings, and paint industry. Company Product Nameplate Capacity (thousand tons per year) PPCL Phenol 492 Acetone 304 Bisphenol A 158 In 2021, PPCL operates three commercial plants located in WHA Eastern Industrial Estate, Rayong, as detailed in the following table: FEEDSTOCK SOURCING The primary feedstocks for the production of phenol are benzene and propylene, which PPCL sources through long-term purchase agreements. GC Group’s plants produce sufficient feedstock for phenol manufacturing. POLICY AND MARKETING PPCL is a company in the Phenol Business Unit. Its policy is to sell products to manufacturers of derivative products and trade agents both in Thailand and overseas, focusing on boosting the sale of phenol, acetone, and bisphenol A in the domestic market, with the current domestic market share at 42%, while exporting the remaining volume to China, India, and countries in East Asia and Southeast Asia. GC expects more intense competition in China, which is its main market. It is also GC’s policy to support selling to other markets, such as Vietnam, Taiwan, and South Korea, taking into account suitable return on investment and risk management plans. PPCL’s Marketing Excellence centers on increasing and retaining domestic market shares as well as expanding into potential international markets, especially niche markets. To achieve this, PPCL employs its business strengths and advantages, including its high-quality products, trade partners with marketing networks across the world, stable sources of feedstock, major domestic customers, and consistent customer relations activities. 45 BUSINESS OPERATION AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL REPORTS AND FINANCIAL STATEMENTS APPENDIX
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