Bangkok:GC and SCGC have announced a strategic collaboration to bolster Thailand's petrochemical industry, aiming to position it as a regional hub. The new joint venture, in which GC will hold a 56% stake and SCGC 44%, is expected to be established in the second half of 2027. This partnership aims to rank the polyolefin business among the top 10 globally.
According to Thai News Agency, the collaboration between PTT Global Chemical Public Company Limited (GC) and SCG Chemical Public Company Limited (SCGC) will combine their olefins and polyolefins businesses. This move is designed to enhance the competitiveness of Thailand's petrochemical industry on the global stage by leveraging the strengths of both companies. These include production bases, raw material flexibility, high-value-added product development, and global market networks.
The joint venture will have a combined olefins production capacity of approximately 7.1 million tons per year. This will establish it as one of the top 10 largest polyolefin producers globally and a leader in the ASEAN region. The venture is projected to generate synergy benefits of approximately US$150-200 million annually, with full benefits expected within three years.
Mr. Narongsak Chiwakanan, CEO of GC, emphasized the collaboration's goal to transform Map Ta Phut into a petrochemical production hub for ASEAN. This will be achieved by integrating production bases with the research and development capabilities of both companies, facilitating the development of products that cater to downstream industries. The initiative is also aimed at supporting Thai entrepreneurs, including SMEs, to add value to their products and enhance competitiveness in both domestic and export markets.