PTT Supports GC Partnership with SCGC to Expand Petrochemical Business Scale and Meet Global Challenges
PTT Global Chemical and SCG Chemicals are studying a joint venture to combine their olefins and polyolefins operations, aiming to strengthen Thailand's petrochemical industry and compete more effectively in global markets facing overcapacit
PTT Public Company Limited has reaffirmed its strategic portfolio management direction by supporting the signing of a Memorandum of Understanding (MoU) to study the feasibility of establishing a joint venture in olefins and polyolefins businesses between PTT Global Chemical Public Company Limited (GC), the flagship petrochemical business of the PTT Group, and SCG Chemicals Public Company Limited (SCGC). The partnership aims to create synergies and expand business scale to address global petrochemical industry challenges.
This collaborative effort in olefins and polyolefins represents a key component of the PTT Group's P&R Portfolio Reshape strategy, which focuses on restructuring to create synergies and strengthen the petrochemical industry flagship. The company will also manage assets efficiently, with PTT's role as major shareholder directing subsidiary companies to adapt and enhance competitiveness, deliver better returns, and create long-term shareholder value.
Under the goal of creating a national champion, PTT recognizes that Thailand needs sufficient scale and integration to maintain its global market share amid overcapacity pressures and fierce regional competition. This joint venture study represents a critical strategy to maintain cost structure and supply chain integrity in the petrochemical industry, which serves as the backbone for downstream industries including packaging, automotive, and electrical appliances.
The company maintains strict financial discipline, currently in the preliminary feasibility study phase under a non-binding MoU, with results expected by the third quarter of 2025 before proceeding to rigorous due diligence. Final approval requires endorsement from relevant regulatory authorities, including the Trade Competition Commission and international antitrust standards, ensuring transparent operations and maximum benefit to Thailand's economic system and all stakeholders.
This collaboration also aligns with the vision of elevating product groups toward high value-added (HVA) solutions to reduce volatility from commodity price fluctuations and pursue environmentally sustainable business practices, thereby enhancing Thailand's competitive advantage in the new economic era.
