Supply of Raw Materials and Utilities

Supply Chain Posts

Apart from Caustic Soda, AGC Vinythai’s production process in MTP1 is a fully integrated PVC and Bio-based Epichlorohydrin (ECH) production while the process in MTP2 and PPD1 is for Caustic Soda, Chlorine, Hydrochloric Acid, and Sodium Hypochlorite.  MTP2 has also Potassium Hydroxide and Potassium Carbonate as products.  The main raw materials and utilities can be sourced locally.  In addition to its own sources, the site also has the capability to import EDC for VCM production when needed.

The supply of main raw materials and utilities, which are salt, ethylene, glycerine and electricity are as follows:

Salt Procurement

Salt is an essential raw material for caustic soda and chlorine production.  For purified salt procurement, AGC Vinythai has jointly invested with others in Pimai Salt Co., Ltd. (PSC).  The company entered into Salt Supplies Agreement to ensure salt supplies for its production

Ethylene Procurement

As well as Chlorine, Ethylene is another essential raw material for VCM production. The company buys ethylene from PTT Global Chemical Public Company Limited which is the major ethylene producer in the Country and currently is one of major shareholders of the company.

Glycerine Procurement

Glycerine is a key raw material to produce bio-based Epichlorohydrin. AGC Vinythai sources and purchases Glycerine from various suppliers to ensure the reliable supply;

  • From domestic and international producers (Southeast Asia, South America and Europe)
  • From Biodiesel and Oleochemicals Industries

AGC Vinythai selects Glycerine Supply from the suppliers who meet quality criteria, sustainable criteria (RSPO, ISCC PLUS) and other criteria (Kosher certification) to ensure excellent quality and performance of Bio-based Epichlorohydrin product.

Electricity Procurement

Electricity is the main utility in caustic soda and chlorine production. The company entered into long term Power Supply Agreement with Glow Energy Public Company Limited (formerly Glow SPP Public Company Limited) since 1996.

In 2020, the company has signed long term Power Supply Agreement with Bangkok Cogeneration Company Limited and has renewed long term Power Supply Agreement with Glow Energy Public Company Limited (GLOW) which allow the company to have reliable and competitive electricity supply.

Logistics

Supply Chain Posts

Transport Safety

AGC Vinythai realizes that transport safety is very much important. With safe transport, the goods delivery will be on time and there will be no impact to everyone’s life and routes that locals use. 

AGC Vinythai have conducted various transport safety programs such as;

  • Conducted meetings between the Company and transporters;
  • Organized training courses to raise driver awareness and ensure safety;
  • Inspected transport vehicles regularly;
  • Evaluated logistics service providers and made awards;
  • Avoided transporting during rush hours;
  • Provided dangerous goods safety awareness training for relevant parties;
  • Ensured the safe nomination of bulk vessels and compliance with Chemical Distribution Institute (CDI) procedures.
  • Set Truck Service Year in order to prevent accident caused by truck conditions.
  • Installed Fatigue and Distraction System into all trucks who carry out Vinythai’s products, more than 172 trucks were installed the Fatigue and Distraction Detection System.
  • Partially switch Salt Transport from Truck mode to Train mode to reduce Salt Truck on public road.
  • Implemented Logistics 4.0 for PVC and Caustic Soda delivery for On-line tracking delivery status and immediate satisfaction evaluation by customer after delivery.
  • Complied social distancing principle to all LSP activities such as On-line safety training, MS Teams meeting, mask wearing, hand cleaning, Tor.8 and work from home.

Enhancement of Logistics by train transportation mode

The salt transportation by train would decrease CO2 emission from truck by using train transportation 43% of salt capacity. CO2 emission can be reduced 3,598 tCO2 /Year. Moreover, this mean can help minimize accident too.

Procurement

Supply Chain Posts

Environmental-friendly Procurement of Products and Services

AGC Vinythai has established a procurement and supply chain policy to carry out management and procurement of products and services that are high quality, safe, environmentally friendly and reduce pollution with a focus on protecting the environment and natural resources including measures to reduce the amount of waste arising from the production process create an environmental management system and continue to work with continuous improvement as well as to promote and support suppliers and contractors to implement the requirements to promote sustainable environmental management throughout the supply chain.

Supplier Management and Assessment

AGC Vinythai’s ongoing assessment of its suppliers begins with supplier selection and continues during service and on completion. The main evaluation criteria are that suppliers meet the company’s requirements for safety, labor, and welfare, including employment of locals, environment protection, and sustainable society. Chosen suppliers are appraised of the company’s Supplier’s Code of Conduct and advised that they will be subject to scrutiny accordingly. To ensure effective supplier management and accurate assessment, the company performs regular checks through visits and other means of evaluation.

Supplier Complaints Channel

The company informed its suppliers about the findings of its communication and complaint channel via its website, at an initial meeting, and at an annual meeting. The rights of any person who communicates such concerns are fully protected. The results of any investigations are reported once completed.