Bangkok, Thailand September 30, 2026 …PTT Global Chemical Public Company Limited (GC) and SCG Chemicals Public Company Limited (SCGC) provide an update on the study for the formation of a joint venture (the “Potential Joint Venture”), which is progressing according to plan. The two companies have entered the confirmatory due diligence phase and are continuing discussions to determine the key terms of the transaction, while further assessing and quantifying the synergies expected to arise from combining the respective strengths, capabilities, and assets of both parties.
The Potential Joint Venture represents an important strategic step toward establishing a leading petrochemical player in the region and strengthening Thailand’s competitive advantage. By bringing together the strengths of GC and SCGC, both of which have long played significant roles in Thailand’s petrochemical industry, the Potential Joint Venture is expected to enhance operational excellence through greater scale and an integrated supply chain, improve feedstock management efficiency, and strengthen downstream capabilities with a greater focus on high value added and differentiated products. These combined strengths are expected to enhance long-term competitiveness at both the regional and global levels.
The scope of the Potential Joint Venture currently under study comprises GC’s olefins and polyolefins businesses in Thailand, including GC’s shares in HMC Polymers Co., Ltd., as well as SCGC’s olefins and polyolefins businesses in Thailand, including olefins crackers, polyethylene (PE) and polypropylene (PP) production facilities, together with SCGC’s shares in relevant joint venture companies, namely Siam Polyethylene Co., Ltd., Siam Synthetic Latex Co., Ltd., Thai MMA Co., Ltd., and Bangkok Synthetics Co., Ltd. Upon establishment, the Potential Joint Venture is expected to hold the shares in the aforementioned joint venture companies currently held by GC and SCGC.
Under the transaction framework currently contemplated, GC is expected to become a major shareholder of the Potential Joint Venture, while SCGC is expected to remain a significant shareholder. The two companies expect to finalize the key transaction parameters by October 2026, including the shareholding structure, transaction steps, and quantified synergies expected to arise from the Potential Joint Venture.
The confirmatory due diligence process will enable both companies to review and validate key information to support the determination of the transaction structure and terms, as well as to comprehensively assess the benefits expected from the establishment of the Potential Joint Venture. The companies will subsequently submit the relevant filing application to the Trade Competition Commission of Thailand (TCCT) for the required approval. The proceeding of the Potential Joint Venture will remain subject to the respective internal approvals of both companies and the necessary approvals from relevant regulatory authorities.
GC and SCGC will continue the study thoroughly, with the objective of combining their respective strengths to enhance efficiency across the supply chain and reinforce the competitiveness of Thailand’s petrochemical industry. The collaboration is also intended to strengthen the capabilities of customers, business partners, and related industries in Thailand, while supporting sustainable competitiveness at both the regional and global levels.
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