Business Development , International Trading Business Unit Aluminium Trading Submitted by Salute Wonghiriwat Business Development , International Trading Business Unit
Executive summary IDEA RESULTS Diversify from core business of PTT by developing non ferrous metal trading Start with the biggest and most potential metal : Aluminium Leverage Trading Business Unit’s relationship with oversea supplier on supply side Leverage Oil Business Unit’s relationship with domestic customers on demand size RESULTS Obtain oversea strategic partners in developing Thailand market Develop 2 spot cargos and 1 long term contract in 2015 : total 3500 MT. Total revenue (half year 2015) = 250 million THB
Purpose of aluminium trading To increase revenue for other commodities to meet business unit’s goal To diversify product line from core business To leverage relationship with existing customers (both selling and buying sides) To build capability of existing workforce on the new product and market
Background of aluminium trading We found that many leading trading companies trade other products besides oil and gas World class trading houses We need to find other product to step into, having selection from world’s commodities World’s commodities Energy Petrochemical Metal Agricultural Textile
Background of aluminium trading Commodities selection Criteria World & region volume Potential growth Complexity External & internal capability Low complexity Worldwide trade Growth potential Strong partners
Aluminium trading in Thailand Annual consumption : 260k MT Supply chain End users Producers Trading firms Alloy producers Cable makers Extruders Packing makers Kitchenware makers
PTT’s strengths and advantages in Aluminium trading Relationship with supply side as trading partner Relationship with Thai customers as energy supplier Developable Trading facilities such as paper trading and logistic management Current flow Targeted flow
Results and Returns Stake holders Financial (2015) PTT Trading Business unit : developing capability of trader and operation PTT Oil marketing team (special product dept.) Oversea trading firms : strengthen relationship by being strategic partners Domestic customers (end users) : offer competitive product and condition Financial (2015) Revenue : 250 million THB (approx.) Margin : 1.1 million THB (approx.) No commercial risk PTT Share of Thailand import : 1%
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