Innovating the Future: TPI PL is Reshaping Industries, Enhancing Lives, and Paving the Path to a Greener Tomorrow in Thailand and Beyond

“Our journey is rooted in a legacy of resilience, foresight, and a commitment to shaping industries while preserving the world we inhabit.”

The TPI PL (TPI Polene Public Company Limited), a formidable industrial conglomerate boasting over 20 subsidiaries, operates across diverse sectors, including petrochemicals and chemicals, construction materials, renewable energy, and bio-green agricultural inputs such as fertilizers, growth hormones, soil enhancers, and personal care. At the heart of the Group’s expansive growth strategy lies a commitment to innovation, evident in both its products and processes. With the resounding motto, “We Build the Future,” the company’s social mandate echoes its dedication to leaving an indelible positive impact on the world.

In an exclusive interview with The Silicon Review, Prachai Leophairatana, CEO of TPI PL, provided valuable insights into how his company significantly contributes to enhancing Thailand’s industrial prowess.

Interview Highlights

Please tell us about the circumstances or events that led to the founding of TPI PL. 

The businesses of the Leophairatana family have roots dating back to the 1940s, primarily engaged in the trading of soft bulks and other agricultural commodities. At one point, the family held the position of the largest soft bulk trader in Thailand. TPI Polene Public Company Limited (TPIPL) was established in 1978 with a focus on producing LDPE (low-density polyethylene) and EVA (ethylene vinyl acetate) polymers, primarily for packaging purposes. Today, TPIPL’s polymer business centers on high-value specialty polymers, finding applications in solar panel modules, specialized copolymers for packaging and films, wire cables, hot melts, and more.

In 1992, TPIPL diversified into cement production, capitalizing on the demand surge for cement and building materials driven by the boom in construction activities amid Thailand’s accelerating economic growth. The company is now the second-largest cement producer in the country.

The subsidiary Thai Nitrate, established in 1996, focuses on producing ammonium nitrate for mining applications and nitric acid primarily used in high-tech gadgets’ solvents. TPIPL went public on the Stock Exchange of Thailand in November 1990.

TPI Polene Power Public Company Limited (TPIPP) was incorporated in 2008 to operate power plants utilizing waste heat from cement kilns, later diversifying into electricity production using municipal solid waste (MSW). It currently stands as the largest privately-owned power plant of its kind in Asia, boasting a 250 MW capacity and handling 10,000-12,000 tons of MSW per day. TPIPP was listed on the Stock Exchange of Thailand in April 2017.

Our coal-fired power plant (150 MW) is undergoing a three-phase modification program to shift to MSW as fuel, with the aim of achieving fossil-free status by the end of 2025. As of the third quarter of 2023, TPIPP holds 1.5 million carbon credits certified by T-VER (Thailand Voluntary Emission Reduction Program) under the auspices of TGO (Thailand Greenhouse Gas Management Organization). Additionally, the company has acquired 1.2 million I-RECs (Renewable Energy Credits) for its renewable energy power plants, showcasing ongoing efforts in carbon and renewable energy accreditations. Although the carbon market is not yet open in Thailand, these accreditations position the company strategically for future opportunities, serving as indicators of progress in advancing ESG and sustainability goals.

The process of extracting calorific value from municipal solid waste has paved the way for another business avenue – bio-organic compounds. These compounds, including probiotics, synbiotics, organic fertilizers, and pesticides, hold vast potential for applications in sustainable agriculture, livestock, and healthcare. This segment is poised to contribute significantly to Thailand’s agricultural sector, fostering a move towards more sustainable farming practices

Research and innovation form the core of TPI Polene’s DNA, nurtured in-house and supported by a team of over 500 engineers and scientists. This sets us apart from many other business groups in Thailand, which often opt for bolt-on acquisitions. The cultivation of internal research and development competencies is considered more advantageous for our company, ensuring business continuity (BAU), enhancing employees’ competency, and benefiting society at large. Over the years, we have amassed a considerable list of Thailand’s firsts and currently boast a product suite exceeding 5,000 SKUs, establishing us as a well-diversified industrial conglomerate.

Q. What strategies does TPI implement to exceed client expectations?

Thailand has a very stringent set of technical requirements for construction and building materials, and it is our responsibility to ensure that materials adhere to these standards. Simultaneously, we strive to assist customers in finding cost-competitive solutions and/or propositions that offer good value for money.

Furthermore, we introduce new products to the market, facilitated by our robust research and development (R&D) efforts. Our expanding list of “Thailand’s Firsts” serves as a testament to our commitment to delivering top-notch world-class products to the market. This commitment is upheld even as we navigate through shifting industry trends and changing preferences, ensuring our continued relevance

Q. As a major producer and distributor of cement, clinker and ready-made cement products, what are TPI’s key focus areas?

We will continue to introduce innovative construction and building products to the market that adhere to Thailand’s stringent standards and quality specifications. Moving forward, our new initiatives and capital expenditures (capex) will increasingly concentrate on products and solutions that can further our sustainability agenda and contribute to our long-term goal of achieving net-zero greenhouse gas (GHG) emissions by 2043. In our power business, the focus on capacity growth will shift towards clean and green renewable energy.

Q. Can you provide us with one or two success stories, detailing specific client challenges and how TPI’s solutions contributed to their success?

Our “Many Firsts List” originates from our persistent efforts to develop products and processes that address customers’ needs. Our WTE-MSW power business holds a wealth of intellectual properties (IPs) centered around extracting calorific value from municipal garbage and adding value to the bio-organic compound by-products. We also have numerous products that offer solutions, and below, we highlight three:

Mortar – TPIPL is the first cement producer in Thailand to introduce this product to the local market, currently holding the highest market share in this segment. Mortar, a formulation equivalent to a “pre-cooked” cement mixture, reduces mixing and drying times, thereby saving labor costs. This innovation proves particularly effective during the extended monsoon season when construction activities are constrained by limited daylight hours.

Over the years, TPIPL has continuously innovated its product line to reduce costs while maintaining the required strength of materials. Presently, the company offers over 10 types of mortar, catering to various customer requirements.

In June 2023, TPIPL achieved another milestone with the launch of its newly-certified Green Cement & Building Materials. This product suite not only addresses traditional challenges but also contributes to sustainability efforts by having a smaller carbon footprint. With carbon offset from our WTE power plant, we can declare that TPIPL cement factory is the only cement factory to reach zero carbon footprint. This initiative reflects TPIPL’s commitment to providing environmentally friendly solutions while maintaining a focus on quality and innovation.

Nano paints are odorless and quick-drying, offering a solution that not only enhances worker safety by reducing health hazards during paint jobs but also significantly shortens the turnaround time from several days to just within a day. When coupled with our fast-drying mortar, the cost proposition and value for money become readily apparent.

Introducing our latest patented product in the United States

Traditionally, materials used in crafting furniture for interior home décor, such as natural wood, medium-density fiberboard (MDF), plywood, laminated wood, and particle board, are easily accessible, lightweight, and offer simplicity in cutting and assembly.

However, these materials present certain drawbacks, including limited service life, vulnerability to humidity, susceptibility to fungal damage, termite infestation, and flammability.

Enter our groundbreaking invention – a fiber-reinforced cement composition comprising cement, fiber, filler, expanded perlite, and polymer. This innovative composition offers a solution with low density, high toughness, and flexural strength, all while being free of volatile compounds. When molded into a workpiece, it becomes lightweight and can be easily cut, lathed, drilled, fixed with screws. Notably, it exhibits tolerance to humidity, termites, and insects. Additionally, it is non-flammable and generates no hazardous dust during cutting, drilling, or lathing, ensuring the safety of workers. As a result, this material proves highly suitable for manufacturing furniture, parts, and modules.

Q. Tell us about the TPI team. What value do they bring to the company?

By its very nature, the Cement & Building Material business is a manpower-intensive enterprise, with automation playing a significant role through the use of top-notch machinery and equipment. The two critical areas demanding a high level of skill, competence, and market intelligence are:

1. R&D and Innovation: This is crucial not only to keep pace with market trends but also to anticipate changes in preferences and material standards. In recent years, the complexity has increased, particularly due to the overlay of ESG-linked requirements. Construction materials rank among the top five carbon-emitting industries, contributing up to 40% of global emissions, according to some estimates. Despite this, it remains one of the fundamental product groups essential for developing a country’s infrastructure and economy.
   
   
2. Marketing and Customer Relationship Management (CRM): The competition in the sector is intense, exacerbated by ever-changing preferences and standards. Nimble marketing strategies and even more agile customer relations are constantly required to address evolving customer preferences. Once again, the introduction of ESG-linked criteria adds another layer of complexity with its Scope 1, 2, 3 GHG protocols.

Q. What new endeavors is TPI currently undertaking?

We are currently engaged in several ongoing medium-term projects aimed at enhancing sustainability and efficiency across various operations. One key initiative involves the conversion of all locomotives used in different aspects of operations into electric vehicles, aligning with a commitment to reduce the environmental footprint. Additionally, there is a strategic effort to substitute coal with Waste-to-Energy from Municipal Solid Waste (WTE-MSW) in the clinker process, emphasizing the shift towards renewable and environmentally friendly practices.

Further, the modification of the coal-fired power plant into one driven by Municipal Solid Waste (MSW) is underway, complemented by plans for capacity additions in solar power, wind power, and WTE-MSW, supporting the company’s commitment to clean energy. These initiatives align with government projects, including power capacity additions in WTE-MSW in selected provinces.

To optimize efficiency and reduce costs, the company has undertaken various projects, while also introducing new specialty co-polymer products derived from their state-of-the-art 3000+ bar reactor. Additionally, efforts are directed towards developing innovative bio-organic compounds tailored to address specific agricultural challenges and requirements.

“Transforming industries and fostering sustainability isn’t just our mission; it’s the heartbeat of TPI PL, echoing through innovation, excellence, and a commitment to building a future that transcends boundaries and leaves an indelible mark on the world.”