PTT Global Chemical Public Company Limited (GC) and SCG Chemicals Public Company Limited (SCGC) signed a non-binding Memorandum of Understanding (MoU) to jointly explore the formation of a strategic joint venture in Thailand. The proposed collaboration will focus on their olefins and polyolefins businesses, including polyethylene and polypropylene.
Through the initiative, both companies aim to reinforce Thailand’s petrochemical supply chain while improving the competitiveness of domestic industries. By leveraging the country’s well-established integrated infrastructure, the potential joint venture could also enhance Thailand’s position in global petrochemical markets.
Driving Scale, Efficiency, and Value Chain Integration
Narongsak Jivakanun, Chief Executive Officer of GC, emphasized that the partnership seeks to create a leading regional petrochemical player. He highlighted that combining operational scale would unlock significant opportunities to improve efficiency, strengthen value chain integration, and deliver higher-value products. The collaboration is expected to support the continuity of downstream industries in Thailand. It will also enhance the country’s international competitiveness while contributing to long-term economic growth.
Enhancing Industry Resilience and Global Positioning
Sakchai Patiparnpreechavud, Chief Executive Officer and President of SCGC, noted that the collaboration will strengthen the resilience of Thailand’s petrochemical sector. In addition, it will help position the country as a key regional hub for production and exports.
He further added that the partnership will support downstream industries by offering a broader portfolio of high-value-added products. At the same time, it will enable the industry to respond more effectively to evolving market demands while creating sustainable long-term value.
Preliminary Agreement with Defined Evaluation Timeline
At this stage, the MoU remains preliminary and non-binding. It marks the beginning of a detailed evaluation process, which will include due diligence and necessary corporate and regulatory approvals. These may involve clearance from the Trade Competition Commission of Thailand, if required. As per the press release, the companies expect to complete the evaluation by the third quarter of 2026. Until then, both GC and SCGC will continue to operate independently and conduct business as usual.
