Corporate Strategies The year 2023 was marked by considerable uncertainty due to external factors, including geopolitical conflicts and the global economic recession. As a result of persistent high inflation and policy interest rates, coupled with the sluggish recovery of the Chinese economy, the demand for petrochemical products experienced a slowdown. Meanwhile, China’s self-sufficiency policy triggered the largest expansion of new production capacities during the 2022-2023 period. These factors combined caused a downturn in the operating rate of the industry in 2023, which was indicative of an oversupplied market and caused the prices and spreads to decline. In addition, an energy transition was accelerated by a surge in environmental consciousness and the climate policies implemented by various countries across the globe, impacting the competitiveness of the industry in the long-term. GC has been closely monitoring these trends and analyzing short-term impacts in order to promptly adjust its operation plans in line with the challenging business condition while also advancing its long-term plan to achieve sustainable growth and respond to megatrends. As a result, GC has been able to accomplish its goals in different areas as planned and maintain its sustainability leadership, as demonstrated by its being ranked as the number one company in the petrochemical industry by the Dow Jones Sustainability Indices (DJSI), making it the only chemical company in Thailand and Asia to occupy the top spot for five consecutive years and placed in the top 10 for 11 consecutive years. GC has realigned its business directions and strategic plans with the evolving landscape, focusing on building and maintaining competitiveness, sustainable business growth, and preparedness in various aspects in support of future growth. GC uses these directions and strategic plans as frameworks for business operations and regularly monitor outcomes to accomplish short-term and long-term corporate goals, with emphasis on the following five strategic focuses: 1 2 Step Change Step Out GC actively enhances its business competitiveness, operations, and resilience to ensuring its ability to operate in the face of challenges, with emphasis placed on maintaining competitive costs and developing high value products. The key strategies are detailed below: GC operates and fosters growth in high-value and low-carbon businesses that accommodate megatrends through three key strategies, as detailed below: Seeking Opportunities in Bio & Circularity Business: GC seeks opportunities in the Bio & Circularity Business, which will play a vital role in enabling it to successfully transition to a low-carbon eco-business according to its business direction. For the recycling business, GC currently operates mechanical recycling through ENVICCO Co., Ltd., which has a domestic recycling capacity of 45,000 tons per year, with plans to expand its markets not only within Thailand but also in Southeast Asian countries and the United States. Furthermore, GC operates a compostable plastics business through NatureWorks Market-Focused Business: GC enhances the value of its High Value Products (HVPs) by applying innovation and by developing customers and marketing alongside product development. In addition, GC has initiated a Market-Focused Business Transformation (MFBT) to elevate its market- and customer-focused business capabilities, focusing primarily on selling application- and solution-based products to meet market and customer needs. Additionally, GC actively seeks business opportunities to access new technologies and expand its market network through collaborations with partners for forward integration as well as create value-added products on a non-competition basis against its current customers. Furthermore, GC places emphasis on customer solution marketing by fostering collaborations with brand owners to develop products that address market trends, using a customercentric approach. LLC (NatureWorks), the world’s leading polylactic acid (PLA) producer with a capacity of 150,000 tons per year, who has begun the construction of a second plant in Thailand to establish an Asia hub for its regional customers. In addition, GC is current ly studying and seeking additional business opportunities in the biofuel /oleochemicals and drop- in biopolymers sectors, with the goal of creating growth and added value for each product. High Value Business (HVB): GC has joined forces with allnex to promote value creation and synergy within GC Group and exchange knowledge in various areas to enhance efficiency, strengthen the business operation, and elevate long-term competitiveness. Second Home Base: GC is seeking business opportunities in the United States to enhance its long-term competitiveness through advantages in raw material costs, markets, and fundamental factors as well as investment promotion policies and incentives, especially in relation to the environment, from government agencies in the U.S. Competitiveness Enhancement: GC implements st rategies to achieve feedstock competitiveness alongside plant optimization to reduce production costs. In addition, there is synergy within GC Group to move towards the enhancement of product value. In response to the economic recession, GC undertaken a thorough review of its investment plans to align them with its investment capacity and studies alternatives in the market to ensure its preparedness for investment in the future as well as its ability to achieve the desired returns on investment for projects and the Company’s overall portfolio. 12
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