Supply of Raw Materials and Utilities

Supply Chain Posts

Referring to the production background process of AGC Vinythai Public Company Limited (AVT),

  • MTP1 is a fully integrated plant of Polyvinylchloride (PVC) and Bio-based Epichlorohydrin (ECH) production
  • MTP2 and PPD1 is a Chlor-Alkali process for Caustic Soda, Chlorine, Hydrogen, Hydrochloric Acid, and Sodium Hypochlorite. Moreover, MTP2 has also produced Potassium Hydroxide and Potassium Carbonate as its products.
  • The key raw materials and utilities of AVT has been sourced locally. Additionally, AVT has a capability to import some of key raw materials for flexibility on operation.

The supply of key raw materials and utilities, which are Salt, Ethylene, Refined Glycerine and Electricity are as follows:

Salt Procurement

Salt is an essential raw material for Caustic Soda, Chlorine and Hydrogen production. For purified salt procurement, AVT has jointly invested with the others in Pimai Salt Company Limited (PSC) to ensure its supply reliability.

For the expansion capacity, AVT has expanded its capability to import Solar Salt from overseas via reliable supply countries covering all key perspectives (Quality, Quantity, Diversity, Competitiveness).

Ethylene Procurement

Along with Chlorine, Ethylene is an essential raw material for VCM / PVC production. AVT has purchased Ethylene from PTT Global Chemical Public Company Limited (GC) which is the major Ethylene producer in Thailand and currently is one of major shareholders of AVT.

Additionally, AVT has cooperated with GC to expand the capability on import Ethylene from overseas when it was required.

Glycerine Procurement

Refined Glycerine is a key raw material to produce bio-based Epichlorohydrin. AVT has sourced and purchased Refined Glycerine from several suppliers to ensure the supply reliability.

  • From domestic and international producers (Southeast Asia, South America and Europe)
  • From Biodiesel and Oleochemicals Industries
  • AVT selects Refined Glycerine from the suppliers who only meet quality criteria, sustainable criteria (RSPO, ISCC PLUS) and other criteria (KOSHER and HALAL certification) to ensure excellent quality and performance of Bio-based Epichlorohydrin product.

Electricity Procurement

Electricity is the key utility in Caustic Soda, Chlorine and Hydrogen production . AVT has committed into long term Power Supply Agreement from reliable producers in the area to ensure its supply reliability supporting AVT long term operation.

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.