Thailand’s petrochemical industry is set for a major shake-up.
SCG Chemicals Public Company Limited (SCGC) and PTT Global Chemical Public Company Limited (GC) have announced plans to combine their olefins and polyolefins businesses in a strategic move aimed at creating a global-scale industry player.
The proposed partnership will pool the companies’ manufacturing capabilities, feedstock flexibility, technology, innovation and global market networks to build a stronger, more competitive business. The combined entity is also expected to rank among the world’s top 10 polyolefins producers, strengthening Thailand’s position in the global petrochemical market.
Beyond expanding production scale, the move is designed to reinforce Map Ta Phut’s position as Thailand’s petrochemical industrial base and transform it into a regional manufacturing hub, while creating new opportunities for downstream industries, including small and medium-sized enterprises (SMEs).
Narongsak Jivakanun, Chief Executive Officer of GC, said, “This partnership aims to build on Map Ta Phut’s position as Thailand’s petrochemical industrial base and develop it into a regional petrochemical manufacturing hub.
"By connecting our manufacturing capabilities with the research and development expertise of both GC and SCGC, we will develop products and solutions that meet the needs of downstream industries. This will support Thai businesses, including SMEs, in adding value to their products and strengthening their competitiveness in both domestic and export markets.”
Sakchai Patiparnpreechavud, Chief Executive Officer & President of SCGC, said, “We are bringing together the distinct and complementary strengths of the two organizations to create a competitive business capable of sustainable growth.
"These strengths range from feedstock flexibility and manufacturing capabilities to technology, innovation, and the development of high value-added products that meet the needs of businesses and downstream industries. In terms of production capacity, this combination will help elevate Thailand into a regional petrochemical hub and bring the combined business among the world’s top 10 polyolefins producers, enhancing its capabilities and competitiveness amid the challenges and volatility of an ever-changing global market.”
The partnership brings together complementary strengths across the petrochemical value chain.
GC contributes expertise in managing a flexible and diversified feedstock mix, including naphtha, LPG, propane and ethane. Its refinery business also provides an additional layer of feedstock supply security, helping the company navigate uncertainty and volatility in global energy and petrochemical markets.
SCGC, meanwhile, brings its expertise in high value-added (HVA) products, technology and innovation, backed by strong research and development capabilities. Through its i2P Center (Ideas to Products), the company works closely with customers to turn business challenges and creative ideas into commercially viable, market-ready products.
The combined business will also draw on the companies’ global customer base and international market networks to respond more effectively to shifting demand and capture growth opportunities, particularly across ASEAN.
With production scale, diversified feedstock capabilities, technological expertise and stronger market access at its core, the partnership is positioned as a strategic move to strengthen Thailand’s petrochemical industry, support the growth of downstream businesses and improve its resilience against an increasingly volatile global market.
