Tpi To Invest More Than Us$1 Billion In Energy Expansion

[Jai Dee]

TPI will invest more than US$1 billions in energy expansion

Thai Petrochemical Industry Plc. (TPI) will invest US$ 1.3-1.4 billion in its energy expansion within the next 3 years.

TPI managing-director Piti Yimprasert (ปิติ ยิ้มประเสริฐ) said the company plans to spend US$850-900 millions to upgrade its oil refinery and to increase the refining capacity to 250,000 barrels per day.

TPI will also buy and develop power production plants to help increase electricity output, Mr. Piti said.

He said TPI will soon undergo debt restructuring which should take 6 months to complete. The company now has a debt worth US$900 millions.

Source: Thai National News Bureau Public Relations Department - 17 May 2006

[sriracha john]

Seems like they also want to get rid of founder, "moral stalwart", and "fitness guru"

Prachai Leophairatana:

TPI set to kick defiant Prachai off board

Thai Petrochemical Industry Plc's (TPI) board of directors will meet on Monday to oust Prachai Leophairatana, the director and company founder, who has been disqualified from sitting on the boards of listed companies.

The company's board will also consider its US$1.4 billion investment plan and review its investment structure after withdrawing from its debt rehabilitation plan, the company's chief executive officer Dr Piti Yimprasit said.

"Under the Public Company Act, if a disqualified director does not resign, the board can dismiss him," said Piti, adding the decision is required by order of the Stock Exchange of Thailand. The SET said earlier that if Prachai remained on TPI's board, the company's shares would not be removed from the Rehabco sector to the petrochemical sector.

The SET also said it might delist the company.

"If that happens, it would have a negative impact on the company. We have to do what is best for the company," Piti said.

Earlier, the SET officially asked TPI's new board to sack Prachai, who last month resigned from Union Bangkok Insurance Plc's board on similar grounds.

The SET blacklisted Prachai from being a director or executive of any listed company, after the Securities and Exchange Commission ruled that he had breached the securities law by disclosing information to boost TPI Polene Plc's share price.

Piti and 14 others, representing the new shareholders led by PTT Plc, were appointed TPI directors at a board meeting on April 27.

In a separate press conference, Prachai continued his defiance, insisting the board had no legal power to oust him.

"The board was illegally appointed. I will petition the Commerce Ministry [which endorsed the appointments] to have it cancel the board. If the ministry declines, I will forward the case to the Administrative Court," Prachai said.

He said he had also submitted a petition to Mongkol Ampornpisit, the newly appointed chairman, insisting the board had no right to hold the meeting on May 22. "Even if they resolve to oust me, I will not comply with the resolution."

Prachai also held out hope that the Central Bankruptcy Court would rule today in his favour, punishing the plan administrator for failing to hand over TPI assets to the original management team immediately after TPI exited its rehabilitation. The assets were transferred to a person who did not belong to the original management team, he said.

Meanwhile, Piti said he would propose to the board a three year investment plan worth US$1.4 billion (about Bt53.4 billion) at the May 22 meeting. It would spend $800 million on renovating a TPI-owned oil refinery, and the rest on renovating TPI's electricity plant, oil tanks and environmental system.

All oil refineries in Thailand are undergoing renovations with the aim of meeting Euro 4 standards by 2010. However, mired in financial crisis for nearly a decade, TPI has lost pace with its competitors.

"We have to invest to maintain the company's competitiveness," Piti said.

The company plans to restructure its operations and refinance debt worth $900 million.

TPI currently holds small investments in about 60 companies which it considers non-core businesses. It will begin selling these companies and shutting down non-active firms with the objective of becoming an integrated petrochemical firm.

"We will not sell core businesses such as oil and petrochemical companies or their support businesses. But we will sell non-core business, such as part of our stake in Chivasorm, and other businesses that are not related to oil and petrochemicals. That will be completed within one year," he said.

As part of its effort to refinance debt worth $900 million, TPI hopes to reduce the number of its creditors from about 60 to four or five.

"Our target is to reduce the number of foreign creditors to three or four, for management flexibility. Right now, the operations need approval from too many creditors," he said.

- TN