IRPC looks to secure foothold in Guangzhou

SET-listed petroleum and petrochemical firm IRPC Plc plans to invest in Guangzhou, China, aiming to operate an e-commerce platform and focus on a variety of plastic products.

IRPC submitted a letter to the Stock Exchange of Thailand yesterday indicating the board of directors approved an increase in subscribed shares of 15% of total registered capital, an amount of 650 million baht (equivalent to 138 million yuan) in Guangzhou Saiju Performance Polymer Ltd (GZSJ).

President Sukrit Surabotsopon said GZSJ is the major operator of plastic product e-commerce in China under the product name IPLAS.

“IRPC will enter into an investment agreement and other related agreements in the fourth quarter of 2018,” he said.

“The investment is subject to fulfilment of conditions specified in the agreement, which GZSJ and its shareholders are required to perform.”

Mr Sukrit said IRPC also approved incorporation of the private limited liability company as a subsidiary under Thai laws, with registered capital amounting to 120 million baht (US$3.69 million).

IRPC and GZSJ will hold shares equivalent to 55% and 45% of the subsidiary’s shares, respectively.

“The subsidiary will be incorporated to develop an e-commerce platform focusing on plastic products in order to expand its channels to capture new consumer behaviour,” he said.

“Upon execution of the investment agreement and other related agreements, GZSJ will proceed to obtain approval on this joint investment from the Chinese authority.”