SCG Chemicals and PTT Global Chemical to form olefins/polyolefins JV targeting top‑10 status
- Combined olefins production capacity of approximately 7.1 million tonnes per year, ranking the JV among the world’s top 10 polyolefins producers and leading in ASEAN.
- Expected synergies of about US$150–200 million per annum, with full benefits realised progressively within roughly three years.
- JV structure via share swap: PTT Global Chemical (GC) to hold 56% and SCG Chemicals (SCGC) 44%, covering olefins and polyolefins assets and related joint ventures.
- Timeline: shareholder approval sought in December 2026; regulatory approvals and conditions precedent to be completed in H1 2027; JV establishment targeted for H2 2027.
Deal overview
SCG Chemicals (SCGC) and PTT Global Chemical (GC) plan to combine their olefins and polyolefins businesses in Thailand through a share‑swap joint venture. The combined business will have about 7.1 million tonnes per year of olefins capacity and aims to rank among the world’s 10 largest polyolefins producers while taking a leading position in ASEAN.
Operational rationale
The partners cite complementary strengths: GC’s flexible, diverse feedstock management (naphtha, LPG, propane, ethane) and refinery integration for feedstock security, and SCGC’s capabilities in high value‑added products, technology and the i2P innovation centre. Proximity of manufacturing in Map Ta Phut supports shared infrastructure, pipeline and utility use.
Expected benefits and positioning
The combination is intended to improve cost competitiveness, asset utilisation and business flexibility, expand high value‑added product development for downstream sectors (automotive, solar, construction and specialised industrial products), and leverage global and ASEAN customer networks. Projected synergies are approximately US$150–200 million per year, phased in over about three years.
Structure and timeline
GC will hold 56% and SCGC 44% of the JV through a share swap covering relevant assets and equity interests. The companies plan to seek shareholder approval in December 2026, complete regulatory approvals and conditions precedent in the first half of 2027, and establish the joint venture in the second half of 2027, subject to approvals.
Source: SCGC