PTTGC, SCGC agree 56%–44% venture terms, target H2 2027

SCG Chemicals (SCGC) and PTT Global Chemical (PTTGC) have agreed the principal terms of a proposed joint venture combining their Thai olefins and polyolefins businesses, according to Siam Cement’s stock-exchange update dated October 28, 2026.

The proposed combination is expected to generate recurring annual benefits of 5.1–6.8 billion baht, approximately US$150–200 million, with completion targeted for the second half of 2027.

Thammasak Sethaudom, president and chief executive officer of The Siam Cement Public Company Limited (SCC), reported the progress to the Stock Exchange of Thailand. SCGC, SCC’s chemicals subsidiary, and PTTGC have reached agreement on the substantive terms and main framework for establishing the strategic joint venture.

SCC described the proposed combination as a means of building a regional petrochemical leader and strengthening Thailand’s competitiveness in global markets.

PTTGC set for 56% stake in proposed venture

PTTGC would become the majority shareholder with a 56% interest, while SCGC would retain a significant holding of 44%.

Following completion, SCC would account for its interest in the combined business as an associate using the equity method, reflecting the inclusion of SCGC’s Thai olefins and polyolefins assets in the venture.

SCC expects the arrangement to increase its share of profits and support future earnings before interest, tax, depreciation and amortisation, or EBITDA.

Combined strengths underpin annual benefits forecast

The expected annual benefits would come from strengthening the downstream business, improving feedstock and supply-chain management, and coordinating operations and maintenance more efficiently.

PTTGC would contribute its upstream production capabilities, access to competitively priced feedstock through refinery integration, and integrated infrastructure.

SCGC would bring downstream manufacturing expertise, a diverse product portfolio, proprietary technology and capabilities in high-value-added products.

The proposed integration is intended to connect those complementary strengths throughout the production chain and improve the competitiveness of the combined operations.

Thai production plants and investment stakes included

The proposed asset package covers production facilities and investments held by both companies in Thailand.

SCGC: Olefins plants operated by Rayong Olefins (ROC) and Map Ta Phut Olefins (MOC), polyethylene facilities under Thai Polyethylene (TPE), and investment stakes in Siam Polyethylene (SPE), Siam Synthetic Latex (SSLC), Bangkok Synthetics (BST) and Thai MMA (TMMA).

PTTGC: Five olefins plants, polyethylene production facilities and its investment in HMC Polymers (HMC).

Shareholder vote scheduled for December 3

The transaction timetable provides for an extraordinary general meeting on December 3, 2026, to consider approval, followed by regulatory applications in the first half of 2027.

• November 18, 2026: Dispatch the notice of the extraordinary general meeting.
• December 3, 2026: Hold the extraordinary general meeting to consider approval.
• First half of 2027: Apply for approval from the Trade Competition Commission of Thailand and other relevant regulators.
• Second half of 2027: Complete the transaction and establish the strategic joint venture, subject to the necessary approvals.

The proposed venture’s dividend policy calls for distributions of at least 60% of consolidated net profit after tax and statutory reserves. Additional dividends may be considered from remaining profits after allowing for necessary investment and working capital.

SCC will continue pursuing its wider growth strategy in Southeast Asia alongside the petrochemical transaction. Priorities include increasing the use of ethane feedstock at Long Son Petrochemicals (LSP) in Vietnam, low-carbon cement, packaging and the Cleanergy business.

SCGC also intends to maintain its regional leadership in vinyls and recycling.