BANGKOK�The Thai government has granted eight petrochemical projects special tax and import duty exemptions to capitalize on an anticipated upturn in world markets. Most of the schemes are geared towards expanding production capacity, improving economies of scale, and meeting competition.
The government approved the corporate income tax waivers and import duty exemptions on machinery and equipment May 31. The plants are worth about $510 million. Staporn Kavitanon, secretary-general of the board of investment, valued the exemptions at about 19.5 billion baht.
In the basic petrochemicals area is Rayong Olefins Co's 2-billion baht scheme to raise ethylene production to 800,000 tonnes/year from the existing 600,000 tonnes/year, and to increase propylene output to 400,000 tonnes/year from 300,000 tonnes/year. Thai Olefins Co, another major basic petrochemicals manufacturer, expects to spend 4.75 billion baht to increase ethylene production to 700,000 tonnes/year from 385,000 tonnes/year.
Siam Mitsui PTA Co will invest 8.35 billion baht to produce 400,000 tonnes/year of purified terephthalic acid (PTA), the raw material for polyester fiber production.
In the polymers area, Thai Polyethylene Co will invest 3.25 billion baht to produce 200,000 tonnes/year more of high-density polyethylene (HDPE), and Bangkok Polyethylene Co will spend 300 million baht to produce an additional 60,000 tonnes/year of HDPE. Thai Polypropylene Co will invest 308 million baht to raise polypropylene output to 140,000 tonnes/year from 100,000 tonnes/year. And Thai Plastic & Chemicals Co will invest 282 million baht to expand polyvinyl chloride production to 80,000 tonnes/year from 60,000 tonnes/year.
