IRPC to spend Bt700m to cut Rayong emissions

20 June 2007 05:36  [Source: ICIS news]

BANGKOK (ICIS news)--IRPC, the Thai petrochemical producer, said on Wednesday it would spend up to baht (Bt) 700m ($21.7m) to cut sulphur dioxide and nitrogen oxide emissions by 10-20% and plug leakages of volatile organic compounds (VOCs) by March 2008.

The statement to the Stock Exchange of Thailand came in response to reports in local media over the past week that IRPC's factories do not meet government pollution standards and the company was at risk of losing its operating licence.

"IRPC would like to inform that our factories located outside Mab Ta Phut Industrial Estate do not emit pollution emissions over the Pollution Control Department's required level," Trithip Sivakriskul, IRPC’s investors relations official, said.

As a long-term measure to reduce pollution, IRPC said it would spend about $200m (€148m) to build a cogeneration power plant fueled by natural gas. This will increase production efficiency and reduce both emissions and the use of bunker oil, Trithip said.

IRPC also must submit a plan to reduce emissions to government authorities to expand operations, in line with companies in the Mab Ta Phut industrial estate. Earlier this year, the government halted approvals of new investments in the estate after villagers complained emissions from the industrial zone were making them sick.

A deal was struck last month after major companies PTT and Siam Cement agreed to invest and cut emissions further. Several community funds were also set up.

But IRPC came under fire last week after government regulators said its emissions in factories outside Mab Ta Phut were not up to standards.

About 76 petrochemical complexes, oil refineries, steel mills and power plants are located in Rayong outside of Mab Ta Phut, and IRPC owns 24 of them.

($1=Bt32.2/€0.74)

By: Daniel Ten Kate
+65 6780 4359

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