SCGC and PTTGC eye petrochemical joint venture, study due in Q3, 2026

Thailand’s petrochemical sector could be moving towards one of its most significant restructurings in years, after SCC’s chemicals arm and PTT Global Chemical agreed to study a possible joint venture covering key olefins and polyolefins businesses in the country.

Thammasak Sethaudom, President and CEO of The Siam Cement Public Company Limited, or SCC, informed the Stock Exchange of Thailand that SCG Chemicals Public Company Limited, or SCGC, a wholly owned subsidiary of SCC, had signed a non-binding Memorandum of Understanding with PTT Global Chemical Public Company Limited, or PTTGC.

The MoU, signed on April 29, 2026, is aimed at jointly studying the strategic feasibility of setting up a joint venture in Thailand’s olefins and polyolefins businesses. The proposed scope includes polyethylene and polypropylene, two core polymer products widely used across downstream industries.

Under the proposed study, the joint venture would cover SCGC’s olefins and polyolefins businesses in Thailand, including its olefins plants, polyethylene production facilities, polypropylene production facilities and relevant joint ventures linked to those businesses. It would also cover PTTGC’s olefins and polyolefins operations in Thailand.

Both companies said the potential joint venture is intended to create a leading regional petrochemical player with the ability to compete globally. The plan would draw on Thailand’s integrated domestic infrastructure, larger business scale and improved feedstock management, while strengthening downstream operations focused on higher-value and more diverse products.

The companies expect that combining their strengths could help improve operational excellence, broaden the product portfolio and make the business more resilient in a petrochemical market facing rising global competition.

However, SCC stressed that the MoU remains preliminary and non-binding. Any actual transaction would still depend on the outcome of due diligence, further negotiations, the signing of relevant agreements and approvals from both companies.

The proposal would also require approval from relevant regulators, including the Trade Competition Commission of Thailand, if such approval is required. During the study period, both sides said they would comply with all applicable laws and regulations, including competition law.

SCGC expects the joint venture study to be completed within the third quarter of 2026.

SCC said it would make further disclosures to the Stock Exchange of Thailand if there are any material developments, in line with applicable rules and requirements.

In a separate statement, Narongsak Jivakanun, Chief Executive Officer of PTT Global Chemical, also confirmed that PTTGC had signed the non-binding MoU with SCGC on April 29, 2026, to jointly explore the strategic feasibility of establishing the proposed joint venture.

PTTGC said the study would cover its olefins and polyolefins businesses in Thailand, alongside SCGC’s equivalent operations, including SCGC’s olefins plants, polyethylene and polypropylene facilities, and related joint ventures.

The company said the proposed joint venture is designed to strengthen the competitiveness of Thailand’s petrochemical sector by leveraging integrated infrastructure, greater scale and more efficient feedstock management.

It added that the project could also reinforce downstream businesses focused on value-added and differentiated products, helping to create a stronger and more diversified product mix.

PTTGC likewise emphasised that the MoU does not create any binding legal obligation. Any transaction would remain subject to due diligence, further negotiations, execution of related agreements, corporate approvals and regulatory clearance, including from the Trade Competition Commission where applicable.

The company expects the feasibility study to be completed by the third quarter of 2026 and said both companies would continue to comply with all relevant laws and regulations during the process.

PTTGC said any material progress would be disclosed to the Stock Exchange of Thailand in accordance with relevant criteria and requirements.