Competition Strategy IRPC has achieved a delicate balance to address the needs of all stakeholders throughout the supply chain to the consumers. With its customer-centric approach, the company seeks to understand and take into consideration the entire customer journey. IRPC sees itself as a Solution Provider that walks the customer through sales presentation, customer services, consultation on raw material selection, production, use case testing, product development, 2021 SEA 14% Others 29% Thailand 57% Petrochemical Industry Outlook for the Year 2022 According to forecasts by Office of the National Economic and Social Development Board, the global economy will continue to expand in 2022. Leading economies, led by the US, the Eurozone, the UK, Australia, and the Newly Industrialized Economies (NIEs), have gradually relaxed epidemic control measures as coronavirus vaccination reached the general population. Continuing development of new antiviral vaccines will also bolster public confidence. As a result, demand and economic activity will pick up approaching pre-COVID-19 levels. The Thai economy is also trending towards a strong recovery from a low base of 2021, supported by an upswing in domestic demand following the easing of the epidemic situation and mass vaccination. The country is opening to foreign tourists while exports of manufactured goods continued to grow apace as global recovery takes hold. However, Thailand must stay vigilant in dealing with COVID-19 pandemic, including latest antivirus vaccine development and distribution. A faster-than-expected rise in inflationary pressures could lead to a revision and tightening of monetary policy. A long-drawn-out supply chain disruption could threaten recovery. The petrochemical and plastic industry is a huge and globally connected industry whose products are most widely used as feedstocks, or raw materials, in related and supporting industries. Its market size and growth rate tend to closely track global economic expansion and recovery. More specifically, the petrochemical and plastic market is determined by the recovering demand for plastic pellets of related industries, such as consumer goods, durables, electrical appliances, automotive as well as electric vehicles, and construction, etc. In this regard, the global economic recovery forecasts for 2022 points to a sustained growth in demand for petrochemical products, averaging three to four per cent per year. Food packaging, personal hygiene and medical equipment, electrical appliances, and electronics and automotive have been identified as industrial segments with the potential for growth in the foreseeable future. However, in 2022, the supply of some petrochemical products in the Asia-Pacific region will continue to increase, especially in China, Indonesia, Malaysia, and India. Costs will fluctuate along with the global crude oil and naphtha, the main feedstock. The current anti-plastic use and related environmental issues affect future demand for petrochemical products and plastic pellets. Petrochemical Business Distribution Channels In 2021, IRPC focus on the domestic market, which accounted for 57 per cent of the total sales. This figure was achieved through 17 capable and experienced authorized distributors under official appointment contracts, capable of providing customer services, and through direct sale to a select group of reliable customers with good credit history. This helped the company respond to customer requirements more quickly. In terms of exports, IRPC primarily targeted Southeast Asian, or ASEAN, which had potential for sustained growth. In 2021, the company exported 14 per cent of its total plastic pellet sales to this market. Source: Petroleum Business Department, IRPC Plc 2021 Petrochemical product sold 85 Structure and Business Operations of IRPC IRPC PUBLIC COMPANY LIMITED
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