1) The petrochemical industry creates goods that are largely undifferentiated. To be lucrative, PCG should be the lowest cost producer. Unprocessed trash form the most PCG expense of revenue. PCG competitive edge is, they have access to very low cost natural gas compared to it is competitor, which often, means a better gross profit margin.
2) PCG is backed by PETRONAS group, which in turn also possesses other 5 PLC units: i) MISC Bhd
ii) Petronas Dagangan Bhd
iii) Petronas Gas Bhd
iv) KLCC House Holdings Bhd
This reveals a strong support and extensive recognition pertaining to PCG due to the better procedures, management and resources having its vertical and horizontal integration.
3) 22 petrochemicals-related companies are being consolidated to create the group. From the debt consolidation, the group will benefit from a high degree of integration inside and across its production facilities to accomplish better production and methods management. The consolidation will also improve usana products portfolio in terms of range, top quality and amount.
4) Petrochemical industry in Malaysia is dominated by two major makers including PCG Bhd and Titan Chemical substances Group Bhd. Titan generally focuses on olefins and polyolefins productions. PCG has a comparable scale in olefins and polyolefins productions, however it presents wider array of petrochemical items including methanol, ammonia, urea, aromatics and other derivatives.
5) Currently, PCG have a marketing network of over twenty-five countries internationally and approximately 550 customers locally. From the consolidation of sales and marketing capabilities into MITCO (Malaysia Foreign Trading Corporation Sdn Bhd), the group have better facilitation of the flow of goods to end customers. This will improve its marketplace visibility, dexterity and earnings growth.
6) Demand for diversified petrochemical goods is growing progressively driven simply by growing global gross home products and rapid...