SCG Chemicals expects chemical business to benefit from trends worldwide and in Asia, such as urbanization, transition to electric automobiles, clean energy; company to focus on high value-added products and services, green innovation including polymers

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May 24, 2022 (press release) –

SCG Chemicals Public Company Limited or SCGC demonstrates its vision to be a regional leader in the chemical market. aiming to grow the business

Along with creating sustainability Reinforcing the strength of having a complete product range from upstream to downstream Aim to develop innovations and HVA products to meet the 5 mega-trends of the world and the ASEAN region. with the potential to be the only operator in the region with production bases in Thailand Indonesia and Vietnam, the three largest economies in ASEAN ready to apply digital technology to the business  Revealing the progress of the investment in the LSP Complex Petrochemical Project in Vietnam It is expected to start commercial operations within the first half of 2023, pushing the total production capacity to increase from 6 . 9 million tons per year to 9 .8 million tons per year, ready to expand the CAP 2 project with partners in Indonesia

Mr. Thanavong Areeratchakul, Chief Executive Officer and Managing Director SCG Chemicals Public Company Limited or SCGC revealed that SCGC has been in the chemicals business for 40 years, since the pioneering era of the petrochemical business in Thailand. and has continued to expand investment in Thailand and in the region with a vision to be “A regional market leader in chemicals that aims to grow the business Along with creating sustainability” under the three key principles of action: (1) aiming to improve the quality of life of customers and consumers with quality products and services, (2) commitment to technology development and innovation, and (3) Operate business with consideration for environmental impact.

SCGC currently distributes products in more than 120 countries around the world. There is a wide variety of products. from upstream monomers and downstream polymers Petrochemical Related Products and current finished products It has a total production capacity of 6.9 million tons per year, representing a share of production capacity in the ASEAN region (as of December 2021) 19 percent or almost 1 in 5

“One of SCGC's key strengths is the presence of manufacturing bases in the three largest economies in the ASEAN region: Thailand, Indonesia and Vietnam. which has a combined population of about 440 million or about two-thirds of the total population in ASEAN has a proportion of income from ASEAN accounted for approximately 21%, with Thailand being the main production base. In Indonesia, it is an investment through a 30% stake in Chandra Asri PetrochemicalTbk ( CAP.) and in Vietnam Currently, the construction of the LSP Complex Petrochemical Project (Long Son Petrochemical Complex), which the Company is considered to be the first mover, is considered a market with good growth potential. Vietnam and Indonesia are projected to see economic growth (GDP) of 5–6% per annum over the next 10 years, which is almost double the global average GDP growth. In the ASEAN region at present (as of December 31, 2021) is 26 kg per person per year. Which is still 2-3 times lower than in Europe and the United States, the ASEAN market has a great opportunity to grow. However, Vietnam still needs to import about 75% of the polymer and about 50% of Indonesia due to the lack of domestic production capacity. enough This is an opportunity for SCGC to take advantage of having production bases in the aforementioned countries. and can respond to market demands faster,” said Mr. Thanavong.

Chief Executive Officer and President of SCGC said that the overall view of the chemical industry and SCGC's business is considered to have potential and opportunities for growth in the short term. medium and long term The chemicals business will be driven. and benefit from Major megatrends of the world and the ASEAN region, such as changes in infrastructure ( Infrastructure) due to urbanizationSwitching to electric cars The transition to clean energy and health care, etc. These will stimulate the demand for chemicals in increasing quantities. This is in line with SCGC's innovative development approach that focuses on High Value Added Products & Services (HVA) as well as the development of Green Innovations such as environmentally friendly polymers. (Green Polymer) and innovations that respond to the Low Carbon problem. In 2021, the Company's proportion of HVA products accounted for approximately 36% of the Company's total revenue. It will also expand products in the environmentally friendly polymer group or Green Polymer to 1 million tons per year by 2030. 

For polymers that are environmentally friendly or Green Polymer, the circular economy principle has been applied as a guideline for product development, including Reduce, Recyclable, Recycle and Renewable. For example, the development of SMX Technology has made plastic pellets 20 percent stronger and can reduce the amount of use of plastics in production Developing high quality recycled plastic pellets (High Quality Post-Consumer Recycled Resin : PCR) which complies with international traceability system standards. by cooperating with many leading brand owners, etc.

“Chemical innovations are all around and relevant to everyone's lifestyles. The company delivers high quality products to customers. to produce products for end consumers Meet a wide variety of applications Both use in daily life such as food boxes, milk cartons, bottle caps and soft drinks. masks, etc., and applications in various industries such as plastics for the manufacture of automotive parts. Medical plastics and structural plastics such as high pressure pipe PE 112 for gas or water supply, etc.

Chief Executive Officer And President of SCGC said that apart from innovations in products and services, the company also attaches importance to the adoption of digital technology throughout the supply chain by combining Data Technology or information technology with Operational Technology or operational technology. work to take Operational Excellence to the next level, including the introduction of machine learning systems to forecast raw material prices, the use of Optimization Models to make decision-making in the efficient operation of the machines, and the Realtime Performance Management system to see data. The rapid operation of the machine can be adjusted to suit the market situation in a timely manner, including the Digital Reliability Platform (DRP) system that helps to manage the complete performance of the machine. to help us run the machine well Efficient machine maintenance and Digital Commerce system

Chief Executive Officer and the President of SCGC also mentioned The progress of the construction of the LSP project in Vietnam that Construction is now proceeding as planned. It is expected to be able to operate commercially within the first half of 2023, which will allow the Company to With a total production capacity increased by more than 40% to 9.8 million tons per year by preparing to support the machine operation, such as the preparation of a long-term raw material purchase agreement pre-marketing to prepare for distribution, etc. The project has used modern technology in the form of Flexible Cracker, able to select a variety of raw materials to be used in production. And it is located in a strategic location that has a logistical advantage. This has a positive effect on effective cost management.

As for the operating results in 2021, SCGC reported revenue from sales of 238,390 million baht and net profit of 27,068 million baht, although the chemicals business currently faces challenges from external factors such as rising raw material and energy prices. However, such factors affect all operators in the industry, SCGC believes that competitive advantages including focusing on the development of HVA products to meet megatrends Business operations in parallel with sustainable development and ESG, including the expansion of environmentally friendly polymer products. and expanding the production capacity of PVC products, etc., will allow the Company Overcome challenges and achieve long-term sustainable growth while listing on the Stock Exchange of Thailand will make the company Have a stronger financial position In order to support the business expansion plan, the company is also studying investment and preparing additional expansion plans in Vietnam. and Indonesia

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