Tie-ups: PTGC/SCGC in MoU to explore jv for olefins, polyolefins businesses in Thailand
Thailand’s PTT Global Chemical Public Company Limited and SCG Chemicals Public Company Limited have signed a non-binding Memorandum of Understanding (MoU) to comprehensively explore the potential strategic formation of a joint venture of their respective olefins and polyolefins (PE/PP) businesses in Thailand.
The potential joint venture is expected to strengthen the security of Thailand’s supply chain and enhance the competitiveness of petrochemical and related domestic industries, leveraging the country’s integrated infrastructure to further enhance global competitiveness.
Narongsak Jivakanun, CEO of GC, added “The objective of this potential joint venture is to establish a leading petrochemical player in the region, reinforcing the global competitive advantage of Thailand’s integrated infrastructure. A combination of this scale offers a compelling opportunity to enhance operational efficiencies and strengthen value via value chain integration, and enable higher product value. At the same time, it aims to ensure the continuity of end-use industries in Thailand, enhance international competitive position, and contribute to the country’s economic growth.”
“This collaboration will reinforce the strength of Thailand’s petrochemical industry while enhancing its resiliency and global competitiveness. It will further elevate Thailand’s role as a regional hub for production and export, support the growth of downstream industries through a diverse portfolio of high-value-added products, address evolving market demand, and create sustainable long-term economic value for Thailand’s industrial sector,” saidSakchai Patiparnpreechavud, CEO/President of SCGC.
The MoU is preliminary and non-binding, and it is an initial step in the evaluation process. Any potential transaction remains subject to the results of due diligence and receipt of the relevant corporate and regulatory approvals including approval from the Trade Competition Commission of Thailand (if applicable).
The evaluation is expected to be completed within Q3/2026. During this period, both companies will continue to operate independently and in the ordinary course of business throughout this period.
Currently, GC has more than 90 operational sites globally and 40 R&D centres in 20 countries worldwide, while SCGC is an integrated polymer and solutions provider with bases in Vietnam, Indonesia, and Thailand, offering a full range of petrochemical products ranging from upstream production of olefins to downstream production of PE, PP and PVC.
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