May 7, 2026 16:12

Two leading Asian chemical groups, PTT Global Chemical (GC) and SCG Chemicals (SCGC), have signed a memorandum of understanding to explore the potential formation of a strategic joint venture combining their respective olefins and polyolefins businesses in Thailand.

According to Narongsak Jivakanun, Chief Executive Officer of GC, “a combination of this scale offers a compelling opportunity to enhance operational efficiencies and strengthen value via value chain integration, and enable higher product value. At the same time, it aims to ensure the continuity of end-use industries in Thailand, enhance international competitive position, and contribute to the country’s economic growth.”

If completed, the joint venture could rely on several crackers for the production of ethylene and propylene, as well as polyethylene and polypropylene plants.

The preliminary and non-binding memorandum of understanding marks an initial step in the evaluation process, which is expected to be completed by Q3 2026.

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