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Thai companies—PTT Global Chemical (GC), an integrated petrochemical and refining company, and SCG Chemicals (SCGC) —plan to combine their olefins and polyolefins businesses in Thailand into a joint venture
As per an announcement made on October 29, 2026, the venture will have combined olefins capacity of about 7.1-mtpa and will rank among the world’s 10 largest polyolefins producers by capacity, with a leading position in ASEAN.
GC will hold 56% of the joint venture and SCGC 44%, through a share swap with no cash consideration. The transaction covers both companies’ olefins and polyolefins assets and businesses in Thailand, including equity interests in related joint ventures. The companies expect synergies of about $150-200-mn per year, with the full benefit coming through in around three years.
The companies plan to develop shareholder approval in December 2026. They will then work on the conditions precedent, including regulatory approvals, in the first half of 2027, before restructuring. Subject to those approvals, the joint venture is expected to be established in the second half of 2027.
The two companies’ vegetation are close to each other in Map Ta Phut, in Thailand’s Rayong Province. The companies said this will allow greater efficient regulation of feedstocks and production, and shared consumption of infrastructure such as feedstock pipelines and utilities. They also cited knowledge sharing, better asset utilisation and cost competitiveness as benefits, at a time when the global petrochemical sector faces overcapacity and evaporative environment. The venture is also meant to enhance profitability and cash generation to fund future investment.
On the strengths each side brings, GC said it has a flexible feedstock mix covering naphtha, LPG, propane and ethane. Its refinery business adds supply security. SCGC contributes high value-added items, methodology and R&D, working with customers through its i2P (Ideas to items) Centre. The companies named automotive, solar, construction and specialised manufacturing items as development areas.
Mr. Narongsak Jivakanun, CEO of GC, said the partnership aims to build on Map Ta Phut’s position as Thailand’s petrochemical base and develop it into a regional manufacturing hub. He said combining manufacturing with both companies’ R&D would create solutions to downstream industries, including SMEs.
Mr. Sakchai Patiparnpreechavud, CEO & President of SCGC, said the two organisations have distinct and complementary strengths. He said the combination would lift Thailand into a regional petrochemical hub and place the combined business among the world’s top 10 polyolefins producers. He added that it would be better able to handle the challenges of a evaporative global market.
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