Member type: RCLG

Chemical industry

Thailand’s chemical industry plays an essential supporting role to many other industries. Most intermediate and starting chemicals are imported from western countries or Japan. The industry is facing a new era where non-tariff barriers (NTB) are considered a more serious constraint than import duty. Significant issues include new EU chemicals regulations, the bilateral Fair Trade Agreements between Thailand and seven other countries, new legislation in Thailand regulating the transportation and waste management of hazardous chemicals, the Product Liability Act, and environmental protection regulations.

In 2008, total sales revenue of members of the Thai Chemical Industries Club were in excess of Baht1.2 trillion (US$ 34 billion), of which nearly half was generated by Responsible Care companies. Overall, Thailand remained a net import of chemicals, except for petrochemicals and plastics, and relies mainly on imported technologies.

The basic chemicals sector comprises mainly of the chloralkali market with annual production of > 850,000 metric tons , chlorine production over 750,000 mt, and sulfuric acid circa 650,000 mt. The paint and dyestuff sector remained steady with 5% growth in 2008, and paints consumption exceeding 450,000mt. The soaps and detergents market is valued at over Baht 20 billion. Both markets are highly competitive but experienced growing exports to neighboring countries. The pesticides and fertilizer markets, valued at Baht 15 billion, are mainly involved in formulation, with growth due to expanding agriculture and higher prices.

Total petrochemicals sales were put at around Bht 435.4 billion (US$13 billion) in 2008, of which over half was exported.

National association
The Federation of Thai Industries (FTI) Chemical Industry Club (CIC) was established 31 years ago and has nearly 150 members making it the second biggest sector group in FTI. It includes five subgroups: Agro-Chemicals, Basic Chemicals, Paints & Dyestuffs, Soaps & Detergents, and Other Chemicals. The petrochemicals and plastics industries are separate FTI groups but cooperate with CIC in a cluster that includes the Petroleum Industry Club. The CIC is a non-profit organization operating as a center for dissemination of information, knowledge, regulations, etc. for members, and interacts with concerned governmental agencies on behalf of members.

CIC is closely involved in chemicals management and chemical safety programs as well as promotion of the ICCA’s Responsible Care program through the Responsible Care Management Committee of Thailand. CIC also participates in meetings with all levels of government and other organizations for policy formulation and regulation implementation.