Corporate News

Bangkok, Thailand - March 21, 2024 - HMC Polymers Company Limited, the leading producer and distributor of polypropylene (PP) resin in Thailand and the largest in Southeast Asia, announces its steadfast commitment to driving sustainable business growth with the unveiling of its concept "ENDLESS SOLUTIONS FOR MORE." Under the leadership of Mr. Corso Uzielli, the company reinforces its position as a frontrunner in PP resin production and distribution, distinguishing itself from other manufacturers in the market through a sustainable strategy built on three pillars: Circularity, Carbon Neutrality, and Connectivity. HMC Polymers reports a consolidated revenue of 25 billion Baht for the fiscal year 2023, aiming to surpass 28 billion Baht in revenue for the year 2024.

Mr. Corso Uzielli, President of HMC Polymers, elucidates on the company's business philosophy, stating, "As we embark on our 41^st year, HMC Polymers continues to forge ahead, innovating and excelling in both production capabilities and business operations across all dimensions. We are driving the full operational capacity of our Polypropylene Plant 4 (PP4), completed at the end of 2022, equipped with the cutting-edge Spherizone technology from LyondellBasell, our shareholder, to manufacture specialty and differentiated grades of PP resin for a wide array of applications. These include the medical and healthcare sector, rigid and flexible packaging, and large-scale industrial components."

Mr. Corso concludes, "With our relentless pursuit of innovation and commitment to sustainability, HMC Polymers remains dedicated to providing endless solutions for our customers, contributing to a more sustainable and prosperous future.”

Mr. Pornchai Pichitwutikorn, Senior Vice President, Business Strategy, Innovation and Commercial elaborates on the strategy to drive products towards sustainability. Beginning with the Circularity Pillar, he emphasizes the company's commitment to maintaining the standards of specialty and differentiated grades of PP resin above competitors. Additionally, the company has developed sustainable products categorized into three types:

• Reduce: Bio-based PP resin, manufactured from used materials such as used cooking oils, reduces carbon emissions during production. These Bio-based PP resins are ISCC PLUS certified by International Sustainability and Carbon Certification (ISCC).
• Recycle: Chemical and mechanical recycling of PP resin, certified by ISCC and GRS (Global Recycled Standard) respectively, to create a closed-loop system for PP resin usage.
• Redesign & Replace: Introduction of PP Monomaterial resin to replace aluminum foil, facilitating easier recycling due to their single-material composition.

Under the Carbon Neutrality Pillar, efforts are directed towards achieving low-carbon society. Labeling carbon footprints for 29 products in 2023, with a total of 60 products certified since 2022. Additionally, the installation of a ground flare aims to minimize environmental impact by reducing pollutants and aiming for "Zero Flare" to mitigate carbon dioxide emissions into the atmosphere.

The final pillar, Connectivity, focuses on leveraging the company's knowledge, innovation, and technology to foster positive societal changes. An initiative called PP Reborn aims to reintegrate used PP plastics back into the production system, recently resulting in the creation of bed pans for patients in collaboration with Thai Coral Reef and Marine Life Conservation Foundation, a royal initiative of Her Royal Highness Princess Sirivannavari Nariratana Rajakanya.

Ms. Angkanee Soonthornsawad, Vice President - Finance, Accounting and Corporate Support, concluded during Press Conference on the financial overview and strategies of HMC Polymers. She addressed, "Despite the global economic slowdown in 2023, attributed to the lingering effects of the global economic recovery, compounded by ongoing economic uncertainty and supply surplus in the petrochemical industry, HMC Polymers has remained resilient. Although, the economic activities in China have resumed after the reopening, signs of a full recovery remain elusive."

She continued, "Amidst these challenges, our business has benefited from a strategic focus on specialty and differentiated PP products, characterized by less competition and higher profit margins. Additionally, our market diversification strategy has resulted in a total revenue of approximately 25 billion Baht for the fiscal year 2023, with over 53% of the total revenue arising from specialty-differentiated products.".

Ms. Angkanee further highlighted the financial strength of the company, with total assets exceeding 360 billion Baht and a sufficient cash flow position. She noted, "Our strong financial position and being a leading South-East Asian PP producer with the advanced technology and product innovations have earned us an 'A-(tha)' credit rating from Fitch Ratings (Thailand) Limited". She also expressed gratitude for the investors' confidence in the Company, citing the oversubscription of the recent bond issuance of 3.8 billion Baht in October 2023, surpassing the target of 3.0 billion Baht. This reflects the Company's readiness to navigate forward with stability and resilience on the foundation of sustainability.

HMC Polymers' commitment to continuous innovation and excellence in all facets of production and business operations, aimed at enhancing consumer quality of life while fostering sustainable growth.