Industrial Alcohol
As a major producer of ethanol, Thai Alcohol Public Company Limited contributes to Thailand's effort to conserve energy.Ethanol, made from agricultural products such as cassava and molasses, is used to produce gasohol which the Thai government has promoted as an alternative fuel to lessen the country's dependence on imports of crude oil and refined petroleum products.

In response to the government's initiative to substitute gasohol for premium gasoline (elimination of 95 octane gasoline by 2007), commercial production and sales of ethanol of 99.5 degrees began in September 2004.

In 2005, our largest customers of ethanol were Bangchak Petroleum Plc., The Shell Company of Thailand Ltd., and PTT Plc., which purchased 19.1 million liters, or 92.3%, of our ethanol sales volume.

We also exported our ethyl alcohol of 95 degrees mainly to customers in Japan for use in the cosmetic, food, and medical industries. In 2005, our largest customers of ethyl alcohol of 95 degrees were Mitsui & Co. UK Plc. and Mitsubishi Corporation, which purchased 21.8 million liters, or 75%, of our ethyl alcohol sales volume.

Expansion at the Thai Alcohol facility has been undertaken, enabling the company to produce approximately 7,400 tons per year of acetic acid, 3,000 tons per year of ethyl acetate and 200,000 liters per day of 95 degrees refined alcohol.

We plan to supply acetic acid to companies in textile and dyeing, ethyl acetate to the paint industry and refined alcohol to companies in the spirits and chemical industries.

The expansion is an essential element of ThaiBev's strategy to increase exports of industrial alcohol products to key markets such as Japan, India and the Philippines.