Big deal! SCG and PTTGC join forces to study joint ventures in olefins and polyolefins in Thailand.

A major deal is shaking up the petrochemical business: SCG and PTTGC are collaborating to study the establishment of an olefins-polyolefins joint venture in Thailand. The study is expected to be completed in the third quarter of this year, aiming to become a regional leader and compete globally.

On April 29, 2569, Siam Cement Public Company Limited (SCC) or SCG informed the Stock Exchange of Thailand that today (April 29), SCG Chemicals Public Company Limited (SCGC), a wholly-owned subsidiary of SCC, signed a non-binding Memorandum of Understanding (MoU) with PTT Global Chemical Public Company Limited (PTTGC) to jointly study the strategic feasibility of establishing a joint venture in the olefins and polyolefins (polyethylene and polypropylene) business in Thailand.

The scope of the joint venture project will cover SCGC's olefins and polyolefins business in Thailand, including olefins plants, polyethylene (PE) plants, and polypropylene (PP) plants, as well as SCGC's related joint ventures in those businesses, and PTTGC's olefins and polyolefins business in Thailand.

The joint venture aims to create a world-class, globally competitive petrochemical leader in the region, supported by integrated domestic infrastructure. This is expected to foster operational excellence through increased business scale, improved raw material management, and strengthened downstream businesses focused on higher value-added and more diversified products, resulting in a robust product portfolio.

This MoU is merely a preliminary agreement and is not legally binding. Any transactions remain subject to due diligence, further negotiations, the entry into related contracts, and approvals from both companies and relevant regulatory authorities, including the Trade Competition Commission (if required). SCGC expects the joint venture project study to be completed by Q3/69. In the meantime, both companies will comply with all applicable laws and regulations, including competition law.

SCG Chemicals (SCGC) is a fully integrated polymer and solutions business with production facilities in three countries: Thailand, Indonesia, and Vietnam. Its operations cover the entire process, from upstream products (olefins) to downstream products, including three main types of plastic resins: polyethylene (PE), polypropylene (PP), and polyvinyl chloride (PVC).

PTTGC, a subsidiary of PTT Group, is engaged in the petroleum products and refining business. Its petrochemical business covers upstream to midstream processes (olefins/aromatics), producing ethylene, propylene, benzene, and paraxylene as upstream raw materials.

• The polymer and specialty chemicals business produces plastics (HDPE, LLDPE) and environmentally friendly chemical products (bioplastics).
• Related businesses provide port services, chemical storage, and plant maintenance engineering.