22 April 2010 11:03 [Source: ICIS news]
SHANGHAI (ICIS news)--SCG Chemicals is looking for acquisition opportunities in Asia’s petrochemical sector to strengthen its position as a major regional producer, the Thailand-based company’s top executive said on Thursday.
The start-up of the company's second cracker, a joint venture between SCG Chemicals and US major Dow Chemical, had reinforced the company’s position as a major regional exporter, said Cholanat Yanaranop, the company's president.
Yanaranop was speaking on the sidelines of the Chinaplas exhibition in Shanghai.
A logical next step would be to acquire assets that could bring the company closer to its customers and help improve its competitive edge, he said.
“We believe that [Asia’s petrochemcial sector] will go through more acquisitions and we’re now looking for acquisition opportunities as well,” said Yanaranop.
He declined to give details of acquisition targets but said it would depend on what assets were available on the market.
The company viewed competition from lower-cost Middle East material as a key challenge, he said, but it believed Asia’s strong demand growth in the coming years would help Asian producers manage that challenge.
Yanaranop said SCG Chemicals was upbeat about the global economy, as the company believed the global downturn that unfolded in late 2008 had seen the trough, and many countries were in the recovery phase.
Petrochemical demand, particulary from China and India, will continue to strengthen as the global economy improves, he said.
“The market should pick up in 2012 or 2013,” he added.
SCG Chemicals is a subsidiary of the Siam Cement Group (SCG), Thailand's largest conglomerate.
Chinaplas 2010 is an international exhibition of the plastics and rubber industries that runs from 19-22 April in Shanghai.
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