Bangchak Group and Khon Kaen Sugar Group supports “BBGI” future products business Joining world-class partners to promote SynBio Greenovation for high-value bio-based products

‘Bangchak Group’ and ‘Khon Kaen Sugar Group’ strengthens ‘BBGI PLC’ bid to enter high-value bio-based products business, expanding on biotechnology strengths as Thailand’s leading manufacturer and retailer of bio-based fuels by joining international and local partner to incorporate SynBio technology to manufacture high-value bio-based products to ensure a sustainable future through green innovation, transformation BBGI with a New S-Curve for sustainable growth, aligned with the national BCG Economic Model.

Chaiwat Kovavisarach, President and Chief Executive Officer, Bangchak Group, revealed that as the Leader in Energy Transition committed to innovative business development in harmony with the environment and society, Bangchak conducts business that targets the fostering sustainable growth through five main businesses, namely, Petroleum Refining and Trading business, Marketing business, Green Power business, Natural Resources business, and Bio-based Product business; a group considered to have high growth potential, resulting in the amalgamation with Khon Kaen Sugar Group, a leader in the Thai sugar industry, to enter the high-value bio-based products business establishing BBGI Public Company Limited (BBGI)

BBGI is a holding company to invest in various businesses that manufacture and retails bio-based fuels, namely, ethanol and biodiesel, which has made BBGI into a major manufacturer and retailer of bio-based fuels in Thailand. Consequently allowing it to expand into high-value bio-based products through the application of Synthetic Biology (SynBio) in order to propel BBGI to be the leader of high-value bio-based products, aligned with the national Bio-Circular-Green Economy (BCG) economic development model to play a role in developing Thailand into a high income country.

Chalush Chinthammit, Chief Executive Officer, Khon Kaen Sugar Industry Public Company Limited or Khon Kaen Sugar Group, stated that the company has a policy of conducting business that is environmentally and socially responsible by developing highly efficient sugar production technology and promoting innovation through research and development to holistically support sugar related business expansion, utilizing by-products of the manufacturing process to generate further added value. As such, the company is cooperating with Bangchak Group, which has bio-based fuel businesses, which enhances energy security and can lead to high-value bio-based products. By combining the strength of Khon Kean Sugar Group, the fourth largest sugar producer in the country, BBGI is able to enhance its raw material security through the five sugar plants, with a combined daily sugarcane processing capacity of 131,500 tons, with 2022 expected to process up to 6.14 tons of sugarcane.

Kittiphong Limsuwannarot, President and Chief Executive Officer, BBGI Public Company Limited stated that the competitive advantage of having major investors like Bangchak Group and Khon Kaen Sugar Group, which are leaders in the upstream and downstream businesses of ethanol and biodiesel, as well as combining BBGI’s over 17-year experience in biotechnology with SynBio technology, allows for the development of high-value bio-based products. In the near future, BBGI is targeting to establish a Contract Development and Manufacturing Organization (CDMO) which can manufacture vairoud high-value bio-based products such as enzymes, collagen, wheyprotein from milk, protein from eggs as well as alternative proteins. The CDMO enhances efficiency and capacity, and mitigate pressure on natural resources and reduce costs relative to conventional manufacturing.

Kittipong added “BBGI has a constant revenue and has been growing for several years even through the COVID-19 pandemic, but through effective management, its profitability has grown. From 2018 – 2020, it recorded profits of THB 151.83 million, THB 386.95 million, THB 845.17 million respectively; growing by more than 100% annually. The 9 months of 2021, BBGI recorded profits of THB 903.01 million, a 59% growth compared to the same period of the previous year. This has resulted in BBGI’s strong financial position, and readiness to grow in the future.”

M.L. Thongmakut Thongyai, President, Krungthai Zmico Securities Company Limited as the financial advisor stated that BBGI is considered a company with expertise in bio-based technology, with the depth of knowledge and long experience with bio-based technology, as well as being a combination of a stable business with robust revenues such as its biofuel business, the group’s cash cow, and high-value bio-based products business, which has favorable margins, with high growth potential. This makes BBGI an outstanding stock that Krungthai Zmico is confident that BBGI will be able to generate suitable returns for the stock market.