SCG Chemicals (SCGC) and PTT Global Chemical (GC, PTTGC), Thailand’s two largest petrochemical companies, are reportedly conducting a feasibility study on forming a strategic joint venture (JV) covering their olefins and polyolefins businesses, with the study targeted for completion in the third quarter of 2026, in September.
The two companies reportedly signed a non-binding Memorandum of Understanding (MOU) on April 29, 2026, and have been reviewing a plan to integrate their respective olefin, polyethylene (PE) and polypropylene (PP) production facilities in Thailand into a joint venture. According to reports as of July 2026, the feasibility study is proceeding normally, it is reported. SCGC is reportedly a petrochemical affiliate under Siam Cement Group (SCG), while PTTGC is a petrochemical affiliate under Thailand’s state-owned energy company PTT, and both companies reportedly operate large-scale naphtha cracking centers (NCC) centered on Thailand’s Map Ta Phut industrial estate. The original report does not specify any process technology or licensor information.
The contract value has not been disclosed, as the project remains at the feasibility study stage. It is reported that, if the joint venture is realized, the combined PE and PP production capacity of the two companies in Thailand could expand to as much as 6 million tonnes/year. The feasibility study is targeted for completion in the third quarter of 2026 (September), according to the report.
SCGC and PTTGC are Thailand’s leading petrochemical companies, and this review is interpreted as part of an industry restructuring trend aimed at securing economies of scale amid global petrochemical oversupply and margin pressure, it is reported. The deterioration in utilization rates and profitability at existing Southeast Asian production facilities, driven by a sharp increase in regional ethylene and polyolefin supply from new capacity in China and the Middle East in recent years, is cited as the background for this integration review, according to the report. Implications for Korea’s Industry
If the integration between Southeast Asia’s largest petrochemical companies materializes, it could lead to a restructuring of the PE and PP supply structure across Asia, warranting close attention from Korean petrochemical companies as well, it is reported. As Korean companies have likewise pursued business restructuring and integration in response to declining profitability in commodity petrochemicals, this Thai case may serve as a comparative reference for industry restructuring trends, according to the report.
Whether the joint venture is ultimately confirmed after the feasibility study concludes in September 2026, and if so, how the specific equity structure and the scope of integrated facilities will be determined, are cited as points to watch, it is reported.