PTTGC acquires chemical firm Vencorex
PTT Global Chemical (PTTGC), a petrochemical arm of national oil and gas conglomerate PTT Plc, has bought a 9.18% stake in France-based chemical maker Vencorex Holding as it continues to acquire more assets that emphasise value-added products.
The share purchase from Perstorp Holding AB will grant PTTGC, which already owned a 90.8% stake, full ownership of Vencorex.
The value of the investment, made through PTTGC’s wholly-owned GC Inter BV, was not revealed in a letter submitted to the Stock Exchange of Thailand. Payment was made on June 30.
PTTGC has bought several stakes from Perstorp Holding since 2012.
The acquisition strengthens PTTGC’s position in the downstream polyurethane business under its plan to focus on value-added products to serve growing demand in Asia, according to PTTGC’s statement.
Vencorex is a major producer of isocyanates in Europe, a family of highly reactive, low molecular weight chemicals used as feedstocks for making polyurethane, which is used for making foams and coatings in the automobile and construction sectors.
In July last year, PTTGC acquired Frankfurt-based Allnex Holding GmbH (Allnex) from Advent Group for 148.4 billion baht to enter the global coating resin market, part of its expansion into the high value-added product business.
Allnex is a prominent player in the industrial coating segment, with almost a 10% market share. The global market value of this sector is US$30 billion a year.
In March 2021, PTTGC acquired an additional 16.2% stake in Vinythai Plc (VNT), a polyvinyl chloride (PVC) maker in Thailand, through a delisting tender offer. The move was aimed at strengthening PTTGC’s position in the PVC supply chain.
VNT products are sold in Southeast Asia.
PTTGC continues to focus on downstream petrochemical businesses to reduce its production of commodity-grade polymers, which face tough competition and price fluctuations, said Kongkrapan Intarajang, chief executive and president of PTTGC.
He said the company sees an increasing trend in the purchase of lightweight but strong materials to be used as building materials, and parts for automobiles, airplanes and electronics.