GC and SCGC exploring polyethylene and polypropylene joint venture

Thai petrochemical companies PTT Global Chemical (GC) and SCG Chemicals (SCGC) have signed a non-binding memorandum of understanding to study a potential joint venture consolidating their olefins and polyolefins businesses in Thailand.

The proposed arrangement focuses on the evaluation of polyethylene and polypropylene operations. The companies are assessing whether a combined business could enhance scale, supply security, and cost competitiveness within Thailand's petrochemical sector.

This initiative aims to leverage existing industrial infrastructure and strengthen connections across the petrochemical value chain. Such a collaboration is expected to support domestic end-use industries and bolster Thailand's position in regional production and export markets.

The plan remains in its initial stages and does not commit either company to a transaction. Any final deal is contingent upon due diligence, corporate approvals, and necessary regulatory clearances. The evaluation process is anticipated to conclude by the third quarter of 2026.