SCGC and PTTGC Eye Petrochemical Joint Venture in Thailand
SCGC, SCC's chemical arm, and PTT Global Chemical have signed a non-binding MoU to study a strategic joint venture in Thailand's olefins and polyolefins sector. The proposed JV aims to create a leading regional petrochemical player by combining their domestic operations, enhancing competitiveness, improving operational excellence, and diversifying product portfolios. The feasibility study, covering polyethylene and polypropylene businesses, is expected to conclude by Q3 2026, contingent on further negotiations, approvals, and regulatory clearances.
Thailand's petrochemical landscape could undergo significant restructuring as SCGC, a wholly owned subsidiary of The Siam Cement Public Company Limited (SCC), and PTT Global Chemical Public Company Limited (PTTGC) have initiated a strategic feasibility study for a potential joint venture. A non-binding Memorandum of Understanding was signed on April 29, 2026, to explore combining their key olefins and polyolefins businesses within Thailand, specifically focusing on core polymer products like polyethylene and polypropylene.TheThe envisioned joint venture aims to establish a leading regional petrochemical entity capable of global competition. This would be achieved by leveraging Thailand's integrated domestic infrastructure, creating a larger business scale, and improving feedstock management. Both companies believe that combining their strengths will enhance operational excellence, broaden their product portfolios, and increase resilience in a competitive global market, while also strengthening downstream operations with higher-value, more diverse products.Both SCC and PTTGC emphasized that the MoU is preliminary and non-binding. Any actual transaction remains contingent on thorough due diligence, successful further negotiations, the signing of definitive agreements, securing necessary corporate approvals from both parties, and obtaining regulatory clearance, including from the Trade Competition Commission of Thailand if required. The feasibility study is projected to be completed by the third quarter of 2026, with both companies committed to complying with all applicable laws and regulations throughout the process. Material developments will be disclosed to the Stock Exchange of Thailand.
