Thailand petrochemical firms GC and SCGC assess polyethylene and polypropylene business tie up

• GC and SCGC signed a non-binding MoU to assess a potential petrochemical joint venture in Thailand
• The review covers olefins and polyolefins operations, including polyethylene and polypropylene
• The proposed venture aims to strengthen supply security and improve industry competitiveness
• Any transaction depends on due diligence, corporate approvals and possible competition clearance
• The evaluation is expected to be completed by the third quarter of 2026

PTT Global Chemical Public Company Limited and SCG Chemicals Public Company Limited have signed a non-binding memorandum of understanding to study a possible joint venture covering their olefins and polyolefins businesses in Thailand.

The proposed arrangement would focus on polyethylene and polypropylene operations, with the two companies assessing whether a combined business could improve scale, supply security and cost competitiveness in Thailand’s petrochemical sector.

GC and SCGC said the review will examine how a joint platform could make better use of Thailand’s existing industrial infrastructure and strengthen links across the petrochemical value chain. The companies see the potential venture as a way to support domestic end-use industries, expand higher-value product offerings and improve Thailand’s position in regional production and export markets.

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The plan remains at an early stage and does not commit either company to a transaction. Any deal would depend on due diligence, internal approvals and clearance from regulators, including the Trade Competition Commission of Thailand if required.

The companies expect to complete the evaluation by the third quarter of 2026. Until then, GC and SCGC will continue to run their businesses separately and maintain normal operations.