PTT Global Chemical Public Company Limited (GC) and SCG Chemicals Public Company Limited (SCGC) have announced plans to combine their olefins and polyolefins businesses in Thailand to strengthen the Thai petrochemical industry’s competitiveness on the global stage.

The aim is to create a larger, stronger business that supports the growth of downstream industries in Thailand while enhancing the industry’s long-term resilience.

GC and SCGC announced plans to form joint venture to strengthen petrochemical industry in Thailand.

New joint venture structure: GC to hold 56% and SCGC 44%

Under the proposed structure, the two companies plan to establish a joint venture in which GC will hold a 56% stake and SCGC a 44% stake, through a share swap with no cash consideration.

The transaction will encompass their olefins and polyolefins assets and businesses in Thailand, including equity interests in related joint ventures.

The new joint venture will have a combined olefins production capacity of approximately 7.1 million tons per year and will rank among the world’s 10 largest polyolefins producers by production capacity, while taking a leading position in ASEAN.

The partnership is expected to generate synergies of approximately US$150–200 million per annum, with the full benefits progressively realized within approximately three years.

Combining expertise of two industry leaders

The partnership will bring together the two companies’ strengths in manufacturing capabilities, feedstock flexibility, high value-added product development, technology and innovation, and global customer and market networks.

GC brings advantages and expertise in managing a flexible and diverse feedstock mix, including naphtha, LPG, propane, and ethane. Its refinery business also enhances feedstock supply security and its ability to respond to uncertainties in global energy and petrochemical markets.

These capabilities are complemented by research and product development expertise that addresses customers’ needs and applications.

SCGC, meanwhile, brings strengths in high value-added (HVA) products, technology, and innovation, together with expertise in product research and development.

Working closely with customers, SCGC translates business challenges and creative ideas into market-ready products through its i2P Center (Ideas to Products), an integrated innovation center.

Combining these strengths will create greater opportunities to develop high value-added products, expand the customer base, and introduce new solutions for industries with growth potential, such as automotive, solar energy, construction materials, and specialized industrial products.

Proximity to petrochemical industrial hub for higher efficiency

Another key advantage is the proximity of the two companies’ manufacturing facilities in Map Ta Phut, Rayong Province, a major petrochemical industrial hub in Thailand.

The partnership will enable more efficient management of feedstocks and production processes, as well as shared use of infrastructure. It will also facilitate knowledge sharing and the adoption of best practices from both companies.

These benefits will enhance cost competitiveness, improve asset utilization, and increase business flexibility—capabilities that are particularly important as the global petrochemical industry continues to face overcapacity and market volatility.